County residents planning to buy their first homes in unincorporated areas of the county may qualify for new funding that will become available in the spring. The state of California’s HOME program will make $800,000 available to low-income households in Placer County. Low-income households are those who earn no more than 80 percent of the area’s median income. For a four-person household, 80 percent of median currently is $56,800.

The county’s First Time Homebuyer Assistance Program provides a shared appreciation loan, administered by the Placer County Redevelopment Agency, and secured by a second deed of trust.

“We know how hard it is for first-time buyers to purchase homes, and the recent economic crunch has added to the problem. That’s why it’s so important to have a program like this available,” said JIm Holmes, chair of the Board of Supervisors.

“The Redevelopment Agency is very pleased to be able to help low-income residents realize the dream of owning their own homes. It’s also true that declining home prices may mean that more homes are potentially affordable to buyers with limited incomes.”

Potential buyers may want to apply now or register with the Redevelopment Agency so they can be notified when funds become available in the spring. Some limited funding is available now through the Agency’s existing CalHOME program. CalHOME and HOME requirements are similar.

To qualify for down-payment assistance through the program, a potential home buyer also must:

· Be a first-time buyer. This means borrower(s) who have not owned a home or been on title to a home during the three-year period before the purchase of a home with County assistance.

· Be preapproved for a first mortgage loan.

· Complete 8 hours of homebuyer classes through the local home loan counseling center.

· Have at least 3 percent of the total purchase price available for the down payment, funds that cannot be in the form of a loan.

· Identify an eligible property for sale in an unincorporated area of Placer County.

Through the program, the county provides a 30-year, second-mortgage loan that is not due and payable until a home is sold or transferred, or no longer owner-occupied.

The maximum loan available through the program is $36,650.

Funding is limited, so not all eligible applicants will necessarily receive loans.

Most of the current funding is from the California Department of Housing and Community Development’s CalHOME Program. The program provides funding to local public agencies and nonprofit corporations for housing programs that benefit households with low or very low incomes.

Details on the Placer County first-time buyer program can be found online at www.placer.ca.gov/Departments/CEO/Redevelopment/housing.aspx. (or go to www.placer.ca.gov and look under “redevelopment”).

More information also is available by calling Joyce A. Pope at 530-745-3168 or Cathy Donovan at 530-745-3170.

The first-time homebuyer program is one of several affordable housing initiatives the Redevelopment Agency has underway.