New funding for First-Time Homebuyers program
CITY OF SHASTA LAKE, Calif. - The First-time Homebuyers program in the City of Shasta Lake will be back in business soon.
The program ran out of money back in 2015 but has now received $450,000 in federal grant funding from the California Department of Housing and Community Development.
In order to qualify households must make less than 80 percent of the median income limit.
Jessaca Lugo, Community and Economic Development Manager for the City of Shasta Lake said that value of the home can not exceed the median sale price but was excited to see the program return.
"We finally got funding like I said we've had a lot of inquiries about it because a lot of the other jurisdictions are also out of funding. It's been a great program for our community, it brings actually a lot of families into our community, puts their kids in our schools," said Lugo.
The program provides deferred second mortgage loans with zero percent simple interest and aims to help families get into homes they may not otherwise qualify for.
Lugo said the loans are good for 30 years and are paid back once the family moves or refinance the home. Once repaid that money would go back into the program and used to help another family.
The city hopes to help at least 10 families and loans max at $60,000. Lugo said, right now the city is collecting interest forms from those looking for more information and looking to officially take application again by the beginning of fall.
Oroville and Paradise also received $1,000,000 in federal funds as well to go towards their First-Time Homebuyer program along with the Owner-Occupied Rehabilitation program in Paradise.