CITY OF REDDING HOMEBUYER PROGRAM
The City of Redding offers home purchase programs to assist income eligible families or individuals purchase
a home within the city limits of Redding. The City provides a “silent” second loan to the borrower(s), no
monthly payments are required. For a home to qualify, it must be either owner-occupied or vacant at least
90 days at the time an offer to purchase is made. The home must be inspected by a professional home
inspector and the City of Redding. Section I and II of the termite report must be cleared. For more
information contact Jodi White at 225-4173, Dave Forseth at 225-4043, or visit the City of Redding’s web
site at http://ci.redding.ca.us/housing/purchase.htm.
The Homebuyer Program has the following requirements.
• Household income must not exceed the guidelines established by HUD (see table below).
• Applicants must have a credit history that meets program guidelines.
• Applicants must meet employment guidelines.
• Payments on long-term debt must be within City guidelines.
• Applicants cannot have owned a home within the last 3 years, or if owned a home, qualify as a
displaced homemaker or a single parent.
• Applicants must provide cash resources equal to 3% of the purchase price, plus any closing costs that
are the responsibility of the buyer. One-half of the downpayment must be from the buyer’s own
assets. All other amounts may be in the form of a gift from another person or entity.
• Maximum purchase price of $178,600.
Low-Income Applicants The maximum loan amount shall not exceed $60,000.
Median-Income Applicants The maximum loan amount shall not exceed $25,000.
Moderate-Income Applicants The maximum loan amount shall not exceed $10,000.
INCOME GUIDELINES EFFECTIVE JUNE 26, 2010
MAXIMUM HOUSEHOLD INCOME PER FAMILY SIZE
1 2 3 4 5 6 7 8
Low-Income 31,550 36,050 40,550 45,050 48,700 52,300 55,900 59,500
Median-Income 39,400 45,050 50,650 56,300 60,800 65,300 69,800 74,300
Moderate-Income 47,300 54,050 60,800 67,550 72,950 78,350 83,750 89,150
Homebuyer Program loan options include:
• Forgivable-interest Homebuyer Program Loans are available in target areas.
• A Lease-Option activity allows applicants to enter into an agreement for the future purchase of the
dwelling they are renting.
• A forgivable-interest Rehabilitation Companion Loan that allows rehabilitation of eligible items on
homes that are 15 years or older (to be used in conjunction with the Homebuyer Program Loan).
• Homes that were bank-owned before purchase may be eligible for a Homebuyer Incentive Program
(HIP) grant of $2,500 (to be used in conjunction with the Homebuyer Program Loan). Funding for
the HIP program begins July 2009.
• Newly constructed homes developed with Redding Redevelopment Agency financial assistance may
be eligible for a New Futures loan. The maximum New Futures loan is no more than 45% of the
purchase price (not to exceed $75,000). New Futures loan applicants do not need to be first-time
homeowners.
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Homeowner Rehabilitation Program
City of Redding
777 Cypress Avenue
Redding, CA 96001
Dave Forseth
(530)225-4043
(530)245-7160 fax
The City of Redding Homeowner Rehabilitation Program provides low-interest loans to qualified homeowners for rehabilitation of residential property. The loans are available to homeowners who would not otherwise be eligible for conventional loan financing. Special consideration is given to families on fixed incomes, particularly the elderly and disabled.
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Eligibility:
To qualify for loan assistance, an applicant must: occupy the property as their principal residence; have title to the property; have household income that does not exceed the low-income guidelines established by the U.S. Department of Housing and Urban Development; and meet program credit criteria.
Home Criteria:
The home must be located in a residentially-zoned area within the Redding city limits.
Loan Highlights:
Deferred payment loans are available to elderly and disabled homeowners. Principal and interest on the loan is due upon sale of the property, transfer of title, or if the borrower no longer occupies the home. The interest rate on a deferred loan is 3%. An applicant not eligible for a deferred payment loan must be financially able to make monthly payments on an amortized loan. The interest rate on an amortized loan is 5%. The loan amount will depend on the cost of the repairs and available homeowner equity. Total debt on the property, including the rehabilitation loan, may not exceed 90% of the property's value. Loans are secured by a promissory note and a deed of trust recorded on the property.
Eligible Repairs:
Repairs may include roofing, pest control work, plumbing, electrical, flooring, painting, and some types of general property improvements. Energy conservation work like weatherstripping and insulation upgrades are encouraged. Improvements such as pools, spas and interior decorating are not eligible.
