The City of Carpinteria, in collaboration with the nonprofit Housing Trust Fund of Santa Barbara County, is offering a Workforce Homebuyer Down Payment Loan Program to expand homeownership opportunities in Carpinteria.
The program helps bridge the homeownership affordability gap by providing 30-year deferred payment loans up to 16.5 percent of the home purchase price, or a maximum loan of $75,000, to assist low to upper moderate-income homebuyers in purchasing a home located within Carpinteria.
Funds can be used for down payment and closing costs for households who earn up to 200 percent of area median income, adjusted for household size. For example, a family of four could earn up to $146,600 and qualify for the program.
The loans have no current interest or principal payments and are repaid, with shared appreciation, upon sale or refinancing of the home or at the end of the loan term. The program is managed by the nonprofit Housing Trust Fund of Santa Barbara County. Funding is available for eight to 10 loans and has been provided by the City of Carpinteria.
Homebuyers seeking a down payment loan must be a first-time homebuyer and have not owned a principal residence within the past three years. Applicants must be a resident of or work within Santa Barbara County, be a U.S. citizen or permanent resident alien, complete an approved Homebuyer Education Training class, be pre-approved for a 30-year fixed rate first mortgage loan from a participating lender and contribute at least 3.5 percent of the home purchase price.
The Workforce Homebuyer Program removes financial barriers to the dream of homeownership by lowering home acquisition and carrying costs. The program enables eligible families to qualify for conventional financing, thus avoiding expensive FHA mortgage insurance, and purchase a home that strengthens the family, the neighborhood and the community.
For more information about the program, please contact Jennifer McGovern, president/CEO of the Housing Trust Fund of Santa Barbara County at 805.685.1949 or firstname.lastname@example.org. For information about the program is available by clicking here. You may also contact the City of Carpinteria Community Development Department at 805.684.5404 x405 or x410.
— Jennifer McGovern is president/CEO of the Housing Trust Fund of Santa Barbara County.