| Applicant Eligibility |
- Must be a first time home buyer (not owned primary residence for 3 years)
- Must have a first time home buyer education certificate (can be obtained by attending a free educational seminar – see home page of this site for upcoming seminar information)
- Must live in OR work in the City of So. San Francisco
- Household income must not exceed 120% of area median income (AMI) for San Mateo County adjusted for family size
- Must qualify for a first mortgage loan
- Prescreen worksheet must be submitted to First Home, Inc, the program administrator (see application process)
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Eligible Properties
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- Single family attached or detached residences within the City of South San Francisco, including town homes and condominiums.
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Maximum Loan
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- Up to $100,000 depending on income
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| Loan Terms |
- 30 year loan term
- No interest or payments for the first 5 years. Beginning year 6, loan becomes a 25 year loan at a 4% interest rate
- Home buyer education certificate required
- No resale restriction
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Repayment
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- Payments deferred for 5 years, then begin at year 6 and run on until loan is paid in full
- Loan balance becomes due upon “triggering event” such as: sale, transfer of title, cash out refinance, conversion to rental/income property, default on first mortgage, or failure to comply with any other program rules
- This is a “Shared Appreciation” loan (See “Equity Participation below)
- There is no pre-payment penalty
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Equity Participation
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- Upon sale or other triggering event, the borrower will pay the City a share of the appreciation of the property, based on the proportion of the city’s loan to the original purchase price. For example, if the City’s loan is 20% of the original purchase price, the City’s share of the appreciation would be 20%.
- Paying off the city loan will terminate appreciation sharing.
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Loan Security
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- City loan is secured by second deed of trust.
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Summary
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- This table presents a summary of the program. The definitive source for program terms are the notes, deeds, and regulatory agreements the buyer will execute as part of a real estate escrow.
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