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The City of Simi Valley is pleased to offer a new First-Time Homebuyer Assistance Program to qualified first-time homebuyers who wish to purchase their first home in Simi Valley.  The property may be a detached or attached single-family home, a condominium or a townhome.  Following is a not-all-inclusive summary of the Program.

• Program eligibility will be based on income as well as a housing cost ratio between 28-38% and debt-to-income ratio under 45%.  Participants must meet the income limits for lower- and median-income households shown below.
   
• The Program is available to those who have not owned a home in the last three years.  Single parents who owned a home while married and displaced homemakers qualify even if they owned a home in the previous three years.  Buyers must occupy the property to be purchased as their primary residence at all times.
   
• The Program offers a deferred payment shared appreciation second trust deed loan (no monthly payments required) of up to $65,000 (median-income household) or $100,000 (lower-income household) to be used towards the down payment.
   
• The buyer will be required to provide a minimum 3% down payment, subject to FICO (credit score) above 675. 
   
• The buyer may also receive a grant for 50% of non-recurring closing costs, up to a maximum of $3,000.
   
• Repayment of the loan is required when the property is sold.  Repayment of the loan will consist of repayment of the principal amount and equity share.  If repayment of the loan takes place within 10 years of purchase to a non-qualifying buyer, an additional payment may be required. 
   
• Any residence purchased with assistance from this Program must be owner-occupied or vacant at the time the offer to purchase is made.
   
• The purchase price, as established by FHA, cannot exceed $446,405 for lower-income buyers and $491,045 for median-income buyers. 
   
• The property must meet HUD Housing Standards and if built prior to 1978, it may be required to pass a lead-based paint inspection.
   
• Prospective homebuyers must attend a first-time homebuyer seminar to participate in the Program.

If you are interested in more information or would like to apply for the Program, please call the Housing Division at (805) 583-6853.

Applications are currently available.  Prospective buyers are encouraged to submit an application for the Program and follow applicable procedures before entering into a Purchase Agreement and before applying for a primary loan.  Pre-approved buyers who have already signed a Purchase Agreement must have it amended in order to satisfy Program requirements.

The City also offers other available First-Time Homebuyer Programs in participation with the Ventura County Regional Mortgage Credit Certificate Program (MCC) the Area Housing Authority (AHA) and the California Housing and Finance Authority (CHFA).  These Programs offer down payment assistance and in some cases assistance with closing costs.  The MCC Program offers a 15% tax credit of the annual interest you pay on the home mortgage, reducing your federal income taxes and increasing your earnings.  The income limits, the down payment assistance, the type of 1^st and 2 ^nd mortgage loans and the maximum purchase price differ for each First-Time Homebuyer Program.  Persons interested in further information should call the City at (805) 583-6853.