Okay, you already have 8,000 free dollars waiting for you in the form of the recently extended Federal First Time Home-buyer Tax Credit…where else can you wrangle a few more dollars to help you to buy your first home? If you live in the City limits of Chico here is an incredible opportunity to obtain interest free, payment free money!
City of Chico Mortgage Subsidy Program. The City is generously offering to loan you money to help with your down payment. The amount they’ll help you with depends in part on your income, low income buyers can borrow up to $70,000, moderate income buyers up to $30,000. You must be a first-time home-buyer, you must contribute at least $5,000 of your own money towards the purchase, the home must be located within a residential area within the City and it must be safe, sound and sanitary.
The coolest part is the repayment arrangement. The loan is classified as a ‘deferred payment loan’ – no (zero) monthly payments required! Interest on the amount borrowed accrues for the first 10 years. For each of the five years between year 11 and year 15 the city forgives 20 percent of the interest, meaning that after 15 years all you owe is the principal amount you borrowed, without ever having had to make a payment! The flip side is that you must remain living in that home for 15 years to get full interest forgiveness – if you sell within the first 10 years you’ll owe all principal AND all interest. The point is, you pay nothing until you sell (or otherwise leave this earth). For more information and specifics on the Chico Mortgage Subsidy Program visit the Mortgage Subsidy Program Web Page or call Sherry Morgado - Housing and Neighborhood Services Director (530) 879-6301
City of Chico Mortgage Subsidy Program. The City is generously offering to loan you money to help with your down payment. The amount they’ll help you with depends in part on your income, low income buyers can borrow up to $70,000, moderate income buyers up to $30,000. You must be a first-time home-buyer, you must contribute at least $5,000 of your own money towards the purchase, the home must be located within a residential area within the City and it must be safe, sound and sanitary.
The coolest part is the repayment arrangement. The loan is classified as a ‘deferred payment loan’ – no (zero) monthly payments required! Interest on the amount borrowed accrues for the first 10 years. For each of the five years between year 11 and year 15 the city forgives 20 percent of the interest, meaning that after 15 years all you owe is the principal amount you borrowed, without ever having had to make a payment! The flip side is that you must remain living in that home for 15 years to get full interest forgiveness – if you sell within the first 10 years you’ll owe all principal AND all interest. The point is, you pay nothing until you sell (or otherwise leave this earth). For more information and specifics on the Chico Mortgage Subsidy Program visit the Mortgage Subsidy Program Web Page or call Sherry Morgado - Housing and Neighborhood Services Director (530) 879-6301
* my friend Anthony Watts conscientiously replied to my last post on this subject with "And who's paying for this - you and me. There IS NO FREE MONEY"... Especially if you don't get some of it Anthony!
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