There have been some changes to the DAP program within the City of Redding. The name of the program has changed to the home buyer Program. The HP provide a “silent” junior loan to bridge the gap between the applicant’s down payment, the first mortgage and the purchase price of the home. The following changes are effective immediately.
- The maximum amount of assistance to Median income households has been reduced from $45,000 to $25,000.
- The maximum amount of assistance to Moderate income households has been reduced from $30,000 to $10,000.
- The maximum purchase price has been reduced from $299,250 to $218,500.
- The threshold for the housing expense ratio has been increased from 31 percent to 32 percent, and the loan committee’s ability to approve a higher ratio has been capped at 34 percent. New eligible activity has been added that allows acquisition and rehabilitation of a home 15 years or older.
- A home buyer Incentive Program has been added to encourage buyers utilizing an HP loan to buy a foreclosure property. The HIP provides a $2500 credit voucher to the buyer at the close of escrow to be used for certain home improvement costs related to the home.
Program guidelines that have not changed are:
- The maximum loan amount for low income buyers is $60,000.
- The buyer must contribute a 3% down payment towards the purchase.(1.5% may be gifted from any source.)
- The back-end ratio is 43% of the monthly gross income.
- The home must be either owner-occupied or vacant for at least 90 days prior to the execution of a purchase contract.
- A home inspection is required with all necessary repairs completed prior to close of escrow.
The City has funds available and there is currently no waiting list for applicants. For more information or to see if you qualify for an HP loan, please give me a call. 530-510-9988.
Avg. Sales Price: $213,873
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