The Homebuyer Assistance Program provides assistance to eligible first-time home buyers in the form of low interest loans. Assistance is provided as "gap" financing with a maximum of $60,000.
The borrowing household shall have incomes at or below 80 percent (80%) of the Stanislaus County Area Median Income (AMI), adjusted for household size, as published annually by the US Department of Housing and Urban Development (HUD).
Borrowers must acquire a private market first mortgage.
Gap financing shall not exceed 60,000. Up to 5 percent of the assistance provided may be used to pay non-recurring closing costs.
Example Gap Financing Calculation
Contract Sales Price$ 250,000
First Mortgage Pre-Approval (meeting City terms)$ 200,000
Estimated Closing Costs (5% of $250,000) $12,500
Gap Financing $47,500 Total Homebuyer Assistance (HAP) $60,000