CLEARLAKE ? There is currently $628,000 available in the City of Clearlake”s revolving loan fund for use in its Home buyer Program. The program operates in coordination with the HOME Investment Partnerships Program.
Staff recently completed composing guidelines to regulate the program. Guidelines were approved the California Department of Housing and Community Development (HCD) in October. City Administrator Dale Neiman said Thursday that staff is still tending to details, such as application forms, and that he expects funds to be available for loan in early months beginning 2010.
A waiting list is being maintained. At present those interested in participating in the program can be added to the waiting list.
Through the program, applicants are to obtain financing from a primary lender and the HOME loan is to be a silent second. Primary lender loans are amortized over a minimum of 30 years with a fixed payment that does not exceed the current market rate. The minimum down payment is three percent of the purchase price.
The city”s loan is deferred for 45 years and the interest rate is three percent simple interest. The loan is required to be paid off upon the sale of the property.
Neiman said that the Redevelopment Agency can serve as the primary lender and monthly payments made on those loans can be re-loaned.
A loan committee, established by appointment of the mayor, is to review and provide approval for any loans made. The committee will consist of the city administrator, finance director and member of the council.
All applicants must certify that they meet the household income eligibility requirements for the program and have their household income documented. All applicants must have incomes at or below 80 percent of the county”s area median income adjusted for household size as published by the HCD. Eligible individuals will not currently be on title to real property. Persons may be on title of a manufactured home unit, who are planning to sell the unit as part of buying a home located on real property.
Housing units types eligible for the Homebuyer Program are new or previously owned single-family detached houses, condominiums, or manufactured homes in mobile home parks, in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.
Housing units located within a 100 year flood zone will be required to provide flood insurance with an endorsement naming the City of Clearlake as additional insured in order to close escrow. Flood insurance must be maintained for the life of the HOME loan.
For more information regarding the program pick up a City of Clearlake Homebuyer Program Guidelines packet at Clearlake City Hall during regular business hours.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 11.
