PLEASE NOTE: THERE ARE CURRENTLY NO FUNDS AVAILABLE IN THE PROGRAM AT THIS TIME.

For additional information or to request an application contact: April Rosenstiel Mercy Housing Corporation 916.414.4453

Deferred Payment Second Mortgage

The City of Rocklin Redevelopment Agency offers a deferred payment second mortgage to assist low and moderate-income households in purchasing their first home by providing assistance with the down payment.

• Available properties

This First Time Home Buyers (FTHB) program uses Rocklin Redevelopment Agency funds to assist qualified participants to borrow 97% of the value of an existing or new home within Rocklin. Participants work with their own realtor to locate a house in Rocklin and their own 1^st mortgage lender to submit the required application and documentation to the City.

The program can provide deferred monthly payments on a second mortgage at 4% simple annual interest to Households (HH) earning certain percentage of Placer County median as follows

• $75,000 to HH earning 80% or less
• $65,000 to HH earning 80.01%-90%
• and $40,000 to HH earning 90.01%-100%

The house price cannot exceed FHA maximum (currently at $580,000). The loan principle plus interest become due and payable upon future sale of the house or violation of the terms of the second mortgage.

1. You must be a First Time Home Buyer - Participants cannot have owned their primary residence within the last three (3) years (except for displaced homemakers).
   
2. Income Eligibility - Incomes for all persons 18 years or older who will live in the house (not just the main borrowers) are included in determining household income for the purposes of the FTHB program. Participants cannot earn more than 100% of Placer County Median income adjusted by household size as follows:
   
   

   	Number of Persons Living in the Household (2008)
   	1	2	3	4	5	6	7	8
   100% Median Income	$49,700	$56,800	$63,900	$71,000	$76,700	$82,400	$88,000	$93,700
   80% Median Income	$39,750	$45,450	$51,100	$56,800	$61,350	$65,900	$70,450	$75,000

3. Property Eligibility Requirements - Properties containing single-family residences, condominiums, attached ownership dwellings and manufactured home on a permanent foundation, all which must be located within the City Limits of Rocklin, are eligible for funding. The participant must occupy the property after purchase.
   
4. Buyers Investment - Participants are required to make a minimum of 3% down payment.
   
5. Home Buyer Seminar - Participants must obtain a certificate that verifies completion of a home buyers/ownership education class.
   
6. Fixed Rate Loan - The first mortgage must be a fixed rate loan with an impound account to collect property taxes and homeowners insurance.
   
7. Housing expenses (principle, interest, taxes, insurance, mortgage insurance, homeowners’ association dues) generally are not to exceed 37% of the gross monthly income of the household.
   
8. Housing Regulatory Agreement - Participants will be required to execute a Housing Regulatory Agreement that will be recorded on the property for a 10-year period. The Agreement will obligate the participant for that 10-year period, to only sell the home to a qualified household that meets the affordability income limits applicable at the time of the sale, for their respective household size.

Questions?
Contact Housing Services at 916.625.5100 or by email at Access Rocklin.