It was mentioned that there are local grants available for homebuyers, and ‘just some guy’ asked for more infomation.
From the City of Carlsbad’s website:
The City of Carlsbad administers both grant and loan programs. This program offers down payment and closing cost assistance to low income households.
The program provides zero interest “silent second” loans that must be repaid when the residential unit is sold. There will be no monthly payments. The assistance may be used to purchase attached or detached residential units within the city limits of the City of Carlsbad. The home must represent the buyer’s primary place of residence. The residential unit may not be used as income property. The buyer is not permitted to rent the unit or any rooms within the unit to another party.
The loan through the program shall be up to 5 percent of the fair market value, but not exceed $20,000. To qualify for a loan under the program, the buyer must meet the stated income requirements and be able to qualify for a conventional mortgage to finance the remainder of the home purchase. In addition, final monthly housing costs for the buyer may not exceed 35 percent of the gross monthly household income. Other restrictions apply.
This program is administered by Community Housing Works for the City of Carlsbad. They can be reached at 619-282-6647.
The San Diego Regional Mortgage Credit Certification Program
The MCC helps you buy a home by:
- Increasing the loan amount a home buyer qualifies for;
- Entitling the home buyer to take a federal income tax credit of 20 percent of the annual interest paid on the mortgage used to buy the home;
- Increasing buyer income and buyer ability to qualify for the mortgage plan;
- Reducing the amount of federal income taxes paid to the federal government;
- Providing a tax deduction that is subtracted from the adjusted gross income before federal income taxes are computed;
- Allowing the home buyer to file a new W-4 form with his/her employer reflecting the MCC credit savings. This increases the number of exemptions and reduces the amount of taxes withheld and increase the buyer’s disposal income;
- Allowing the home buyer to also wait until the end of the year and realize the tax credit savings in one lump sum when filing the federal income tax return.
- First time home buyers;
- Home buyer cannot have ownership interest in a principal residence in the last three years;
- Home buyer must occupy the home as a principal resident.
- New or previously occupied single-family homes, including single-family detached homes, condominiums, half-plexes, owner occupied duplexes or townhouse in the cities of Carlsbad, Coronado, El Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Poway, San Marcos, Santee, Vista and the unincorporated areas of San Diego;
- Triplexes or four-plexes do not qualify as eligible structures for this program.
Steps to apply for an MCC:
- Obtain list of participating lenders from the SDRMCCP Office, 619-469-0270 www.ahahousing.com
- Apply for MCC when applying for a mortgage loan;
- Buyer should have a purchase offer in hand and should be ready to supply credit information, employment data and other information for both the mortgage and the MCC applications;
- Lenders work with borrowers on a first-come, first-served basis;
- During the mortgage process, the lender submits a MCC application;
- If eligible, the SDRMCCP provides a MCC commitment to the lender which reserves a MCC for that purchase transaction;
- MCC is issued at close of escrow.
The MCC recapture tax
Recipients of MCC may be subject to recapture tax if they sell their residence within nine years.
Affordable Housing for Sale
There are condominiums for sale through the inclusionary housing ordinance in the Mulberry at Bressi Ranch development. Buyers must be from low-income households and be able to show that they will not be paying more than 35% of their income on housing costs for their new home.
There are four Mulberry condos listed for resale currently, and all are well under their original purchase prices in 2005.
2670 Alameda sold for $420,000 in 2005, and the owners 100% financed their purchase with three loans. The City of Carlsbad loaned them $218,500 as a second mortgage, behind a $190,000 first mortgage – which means the city will lose just about all of their investment. It is now listed for $235,000:
The city is taking a $200,000+ bath on these too:
From the listing: This home is located in an income-restricted neighborhood that requires the owner(s), at the time of purchase, to meet the following income criteria: 1 person household gross income not to exceed $44,000. 2 person household gross income not to exceed $50,250. 3 person household gross income not to exceed $56,550. 4 person household gross income not to exceed $62,800. 5 person household gross income not to exceed $67,850. This condo is perfect for parents, in laws, students or anyone that fits the income requirements. After you purchase you no longer have to maintain the income requirements. This affordable housing sales restrictions remain with the property for 15 years from the purchase date. Additional city of carlsbad restrictions include: 1) unit must be owner occupied 2) within 15 years from date of purchase unit may only be sold at low-income price 3) monthly mortgage payments can not exceed 35% of the household’s gross income at the time of purchase.