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Suisun Helping First-Time Home Buyers With Zero Interest Loans

February 5th, 2010 categories: Buying, Loans / Financing, Suisun City

Up To 25% When You Buy A Suisun Foreclosure


If you’re a first-time buyer looking to buy a foreclosed property, Suisun City has a program that might increaseRaining money your buying power by opening the door to homes you might otherwise never have been able to afford.

I’m talking about their First Time Home Buyer program, which not only helps those looking to get into their first home, but also helps prevent neighborhood blight at the same time.

The basic details:

  • It’s a “silent second” mortgage, with deferred payments and no interest.
  • You can borrow up to 25% of the value of the home.
  • You must purchase a foreclosure (or a short sale that’s already in foreclosure).
  • When you sell, you repay the loan PLUS the equivalent percentage of the home’s accrued appreciation.
  • To qualify, your household earnings must not exceed 120% of the area’s median income.
  • Homes must be located within Suisun’s Redevelopment District.

Here are the current income limits, which are based on the number of people in your household.

Suisun FTB Eligibility Chart

Right now, the city still has $3.4 million of the $4.4 million that was allocated to the program. Based on Suisun’s current median sales price for December ($195,000), that’s enough to fund approximately 70 first-time home buyer purchases.

And even though Suisun Economic Development Director Jason Garben anticipates that there should be enough money to last several years, he says that there is also a source of replacement money through the city’s Redevelopment Agency.

How It Works

In a nutshell, here’s how the program works. First, you get pre-approved for a first mortgage with a traditional lender. Then, the city bridges the gap between your minimum down payment and the total cash needed to get into the home, up to a maximum of 25% of the purchase price.

As you saw above, the city shares in a portion of the appreciation when you sell. So if you borrow 25% and make $100,000 on the home by the time you sell, then you keep $75,000 and give $25,000 to the city.

More Home For Your Money

But the real beauty of this program is that it enables eligible buyers to increase their buying power by up to 25% and thereby afford a home they otherwise never would have been able to buy.

And what’s in it for the city? Well, they get to provide an immediate new owner-occupant for a home that might have otherwise fallen into disrepair or become a neighborhood eyesore. So it’s, as they say, a “Win-Win” situation.

Right now, there are 18 homes on the market in Suisun which are eligible for the city’s First-Time-Home-Buyer financing program, ranging in price from $121,900 to $475,000.

Most, But Not All Homes Qualify

To qualify, homes must be located within the city’s redevelopment district, which includes just about every residence in town except for Peterson Ranch (off Walters Rd.).

Contact us for more details or for a current list of homes that qualify for the city’s FTHB program. Also, check out the city’s brochure and Suisun’s web site, both of which have further information, including details on Suisun’s neighborhood revitalization grants, which are also available to eligible first-time buyers.

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This entry was posted on Friday, February 5th, 2010 at 1:55 am and is filed under Buying, Loans / Financing, Suisun City. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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