Paradise and Oroville, California both offer low-interest loans to qualified first-time homebuyers based on current income limits and property type. As an approved lender, Network Mortgage can assist you with either program.
First-time homebuyer programs
Both the town of Paradise and the city of Oroville offer deferred, low-interest loans to eligible first-time homebuyers — based on federal income limits — as down payment assistance to purchase a home.
What is a first-time homebuyer? A first-time homebuyer is usually defined as someone who has not owned a home in the past three years. However, some communities make exceptions to this rule in cases of natural disaster. In addition, income guidelines may be flexible in communities where an individual has had their home or job impacted by natural disaster.
The loan is a “bridge” or “gap” loan, meaning that the loan amount is based on the difference between what the borrower can afford and the amount of money needed to purchase the home. The loan is secured by a note and a deed of trust and does not require monthly payments.
Repayment conditions
- A mortgage subsidy loan is secured by a deed of trust and does not require monthly payments.
- The loan is due in 30 years, or when:
- The home is sold.
- The homeowner stops using it as their principal residence.
- The title is transferred out of the name of the original borrower.
Special requirements
- Borrower must be a first-time homebuyer (has not owned a home in the last three years).
- Borrower must have no unpaid collection accounts.
- The home to be purchased must be located in the city limits.
- The home must meet all local housing code requirements.
First steps
- Borrower should gather income documentation (paystubs, W-2s and tax returns) for two years.
- Borrowers should also provide two months of asset statements for all accounts.
- Complete a program application and have it approved by the appropriate city department (see resources below).
- Once approved for the down payment assistance program, borrower should contact a certified lender and present their approval letter.
- The lender will help them through the rest of the process.
Note: Many local assistance programs require borrowers to take an education class before issuing an approval letter or making funds available. Lists of approved lenders are available at the resources listed below.
We can help
Most housing assistance programs in Butte County are very similar, but there are distinct differences. Also, the availability and regulations change frequently, so it’s important to work with an approved lender who can access current and accurate information. If you’d like to speak with some smart and caring folks who can clear away the jargon and explain these programs in simple terms, we can help.
Resources
- Oroville: First-time homebuyer program
- Paradise: First-time homebuyer program
