Frequently Asked Questions

Current income limits are published annually, the most current and active income limits are located: http://www.cityofshastalake.org/index.aspx?nid=880

The definition of a First-Time Homebuyer for the City of Shasta Lake Homebuyer Program is located:

$224,000 (effective 03.01.2017)

Yes, the boundary map can be found here:

The amount borrowed is the minimum needed to close the gap between th eprimary lender requirements and the buyers required 3% contribution, but not to exceed $60,000.

Yes, all borrowers are required to contribute a minimum of 3% of the purchase price. This can be borrowers own funds or gifted from a family member. Verification of these funds are required at the time of application.

Loan repayment is deferred for 30 years at an annual interest rate of 0% (equity share conditions may apply, depending on funding source). Borrower must pay the loan balance if property is sold, transferred, or converted to rental property at any time during the loan period. The City of Shasta Lake Homebuyer Program is recorded as a second mortgage against the property. All loans are to be repaid.

Yes.

The City of Shasta Lake Homebuyer loan is recorded as a second mortage against the property. The balance of the second mortgage, plus any applicable equity share or interest will be due and payable in full.

The City uses State and Federal funds to help low- and moderate-income first-time homebuyers purchase homes that are decent and affordable. When a home is purchased with these funds, restrictions or “covenants” are placed on the property to ensure that the property remains affordable for low-income families well into the future. The length of the affordability period may range from 10-45 years depending on the funding source. Generally speaking, If the home is sold within the affordability period it must be sold to another eligible low-income homebuyer. Sometimes the affordability period is confused with the loan term, or the length of time a homeowner has to repay the loan. Contact our housing staff for more information on affordability periods and financing options.

These ratios are indicators that determine the amount of debt that you can comfortably take on. The housing ratio is the comparison of your monthly income to your monthly housing expense. The debt-to-income ratio looks at your total monthly income copared to your total monthly expenses. As a rule, your monthly housing expense should be no more than 30% of your monthly income.

If you have not been on title of ownership for property for 3 years or more- Yes you may qualify as a First Time Homebuyer.