Qualified homebuyers may receive a maximum loan amount of 20% of the purchase price up to $50,000 towards the purchase of a foreclosed home located within one of the NSP target areas. (click here for map)

What is the definition of First-Time Homebuyer?

A Homebuyer may not have owned a residence within the last three years.

What is the eligibility criteria for this loan program?

Household income must be at or below 120% of Area Median Income for Solano County.

•  Homebuyer must attend a Homebuyer workshop, such as those offered by City of Vacaville Housing Counseling Center or other approved HUD-certified Housing Counseling Centers. For a schedule of workshops, click here.
• Homebuyer must purchase a foreclosed upon single-family detached home, condominium or townhouse located within the eligible NSP target areas.  Mobile homes are not eligible.
• The home must be the homebuyer’s principal place of residence.
• Homebuyer must contribute a minimum investment of 1 percent of purchase price towards the down payment.
• Homebuyer must have good credit and income criteria meeting first mortgage requirements.

What are the terms of the loan?

The loan term is 15 years at zero interest with no payments required during that time as long as the homebuyer does not sell, transfer ownership, rent the property, refinance it with cash back, or prepay the loan with any other funds.  Upon sale or transfer, the loan and shared appreciation is due.  The loan will be forgiven if the Borrower remains in the home for the full term of the affordability period.

How does Shared Appreciation work? 

In exchange for receiving the City’s deferred loan, the homebuyer agrees to share a portion of the home’s appreciation (from the original purchase price) when the home is sold.  Shared Net Appreciation will be calculated as described below.

1.  Gross appreciation is calculated by subtracting the original sales price from the current sales price or the current appraised value if the loan accelerating event is other than sale of the property;
2. Net appreciation is calculated by subtracting the seller’s applicable closing costs, seller’s cash contribution in the original purchase transaction, and the documented value of capital improvements from the gross appreciation amount;
3. The City may only claim repayment of the principal portion of the net appreciation.  That maximum portion of the net appreciation which may be claimed by the City is equal to the percentage of the value of the home financed by the Program loan.  That is, if the loan equals 20% of the initial value of the home, a maximum of 20% of the net appreciation may be charged by the City.

Are there any loan restrictions?  

The affordability period is determined by the amount of Program funds to the homebuyer.  The minimum affordability periods for a homebuyer loan are:

•  5 years for under $15,000
• 10 years for $15,000 to $40,000
• 15 years for more than $40,000

Is there an application fee?

Homebuyer will be charged an application fee of $250 to secure a loan at the time application is submitted.  Application fees must be from homebuyer’s own funds and are not reimbursable from escrow.

Where do I need to begin?

• Homebuyer must meet the eligibility criteria listed above;
• Complete a homebuyer workshop;
• Apply with one of the participating lenders. For a list of participating lenders, click here.

Additional requirements may apply.

For program information or if you are interested in becoming a participating lender, please contact Kathy Larson at (707) 449-5653 or Alex Monje-Petty at (707) 449-5664 or send an email to dhr@cityofvacaville.com

You may contact the Vacaville Housing Counseling Center at (707) 449-5610 or email dhr@cityofvacaville.com for the next homebuyer workshop.