Assistance for Grass Valley home buyers soon available
Home buyers in Grass Valley may soon be eligible for up to $75,000 in deferred interest loans toward their first house purchase.
The city was awarded $500,000 this week in federal funding to continue its first-time home buyer assistance program, which provides 30-year loans to income-qualified applicants for down payments, closing costs or other fees. The federal funding typically takes a few weeks to be available for use on the local level, Community Development Director Tom Last said.
The program has been around in Grass Valley for more than 20 years, and according to the city’s latest housing element, between 2014 and 2019 the program approved seven loans for first-time home buyers.
According to Last, the city may work with the state to increase the maximum loan amount and lower the deferred interest rate from 3% down to 2%.
“We want to make this program enticing for people,” he said.
People interested can email Last at firstname.lastname@example.org or call 530-274-4711. About 10 people are currently wait-listed for the program, and as they move through the application more documentation and information will be requested.
In order to meet eligibility, applicants must be below 80% of their area’s median income, Last said. A two-person household, for example, would need to earn less than $56,000 a year to qualify.
They must also be able to qualify for a primary loan on the home.
Typical setbacks in the application process are not meeting income eligibility requirements and the inability to find a home to buy, Last said.
“Once the city sets aside the money for you, you have about three months or so to find a house and sometimes finding a house is problematic,” he said. “I hope we can get this money soon and hopefully housing prices will stay low enough for some of these first-time home buyers to still get in.”
To contact Staff Writer John Orona, email email@example.com or call 530-477-4229.
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