What is Affordable Housing?
The City of Hercules Affordable Housing Program provides down payment assistance loans to low-to-moderate income households, to purchase their first home within the City of Hercules. It is not a voucher program or Section 8 program. For Section 8, please contact the Contra Costa County Housing Authority at 925-957-8011.
Does Affordable Housing have a list of available properties for sale/rent?
The Program does not keep a list of particular properties. Clients can choose from single-family homes, townhomes or condominiums that are for sale within the City and are within their purchasing means.
Is the Program Orientation and Homebuyer Education required?
All clients must RSVP and attend the Program Orientation. If a client has attended a Homebuyer Education class elsewhere, and the curiculum for the program meets the Homebuyer Education standards, then the Affordable Housing Program will accept the certificate for that Homebuyer Education Class. If clients have NOT attended any Homebuyer Education classes, attendance is required. Client's must be approved for the program to RSVP and attend Homebuyer Ed. The cost is $30.00 per household.
Is there a credit score requirement?
All applicants must have a median FICO score of 620. Part of the application process will involve running a credit check.
What is the definition of a first time homebuyer?
By federal definition, a First Time Homebuyer is someone who has not owned or claimed any tax benefits from a property in the last three years. Clients who owned and sold a home more than three years ago are eligible to participate in the program. Clients who were on title to a property within the last three years but did not claim any tax benefits from it may also qualify to participate in the program. Displaced homemakers are also eligible to participate in the program.
Whose income is calculated to qualify for the program?
Everyone 18 or older who will be residing in the household must state their income on the application. The household is qualified as eligible for the program as a whole, even if only the applicant and co-applicant intent to be on the loan for the home. Both the applicant and co-applicant must receive and income. All applicants must qualify as a low-to-moderate income household as outlined by the State, in order to qualify.
Do I have to qualify for a loan with a bank or first lender?
Yes. The City's down payment assistance loan is a secondary finance loan, meaning that all participants must qualify with and receive a primary mortgage loan from a lending instition. Affordable Housing does not have a list of perferred lenders, although we recommend that any lending representatives not familiar with the program attend the Program Orientation.
Do I have to use a realtor selected by Affordable Housing?
No; Affordable Housing does not have a list of prerferred realtors. Participants are welcome to use any realtor they feel comfortable with. We do recommend that any realtors not familiar with the program attend the Program Orientation.
How much money do I have to put towards the home?
The program guidelines state that qualified participants must be able to contribute three percent (3%) to the property. It does not, however, have to be applied to the downpayment; it can go towards closing costs. Clients can also receive this money as a gift from a friend or family member, or negotiate them to be received as a seller's credit.