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1. What are the current income limits?

Current income limits are published annually, the most current and active income limits are located:
http://www.cityofshastalake.org/index.aspx?nid=880 Income Limits

2. What is the definition of a First-Time Homebuyer?

The definition of a First-Time Homebuyer for the City of Shasta Lake Homebuyer Program is located:
Definition of FTHB

3. What is the current allowed Maximum Purchase Price for the Shasta Lake Homebuyer Program?

$224,000 (effective 03.01.2017)

4. Must the home purchased be located in the City Limits of Shasta Lake?

Yes, the boundary map can be found here:
Map

5. How much can I borrow?

The amount borrowed is the minimum needed to close the gap between th eprimary lender requirements and the buyers required 3% contribution, but not to exceed $60,000.

6. Do I have to contribute funds towards the transaction?

Yes, all borrowers are required to contribute a minimum of 3% of the purchase price. This can be borrowers own funds or gifted from a family member. Verification of these funds are required at the time of application.

7. What are the terms of the loan and interest rate?

Loan repayment is deferred for 30 years at an annual interest rate of 0% (equity share conditions may apply, depending on funding source). Borrower must pay the loan balance if property is sold, transferred, or converted to rental property at any time during the loan period. The City of Shasta Lake Homebuyer Program is recorded as a second mortgage against the property. All loans are to be repaid.

8. Is owner occupancy required?

Yes.

9. What happens if I need to sell my home during the term of the loan?

The City of Shasta Lake Homebuyer loan is recorded as a second mortage against the property. The balance of the second mortgage, plus any applicable equity share or interest will be due and payable in full.

10. What are affordability covenants and how do they affect my home purchase?

The City uses State and Federal funds to help low- and moderate-income first-time homebuyers purchase homes that are decent and affordable. When a home is purchased with these funds, restrictions or “covenants” are placed on the property to ensure that the property remains affordable for low-income families well into the future.

The length of the affordability period may range from 10-45 years depending on the funding source. Generally speaking, If the home is sold within the affordability period it must be sold to another eligible low-income homebuyer.

Sometimes the affordability period is confused with the loan term, or the length of time a homeowner has to repay the loan. Contact our housing staff for more information on affordability periods and financing options.

11. I have heard the terms “housing ratio” and “debt-to-income” ratio. What do they mean?

These ratios are indicators that determine the amount of debt that you can comfortably take on. The housing ratio is the comparison of your monthly income to your monthly housing expense. The debt-to-income ratio looks at your total monthly income copared to your total monthly expenses. As a rule, your monthly housing expense should be no more than 30% of your monthly income.

12. If I participated in a short sale for my previous owned home, do I still qualify?

If you have not been on title of ownership for property for 3 years or more- Yes you may qualify as a First Time Homebuyer.