§ 30-year fixed mortgage rates
§ Maximum homes priced up to $280,000
§ Below market interest rates
§ Deferred/Forgivable no interest gap financing up to $75,000 based on need (principal
reduction, payment of closing costs and impact fees)
§ Provision of homebuyer/homeowner education and training to ensure
successful homeownership
§ Prequalification and credit counseling and repair for homebuyers
§ Customary local permit fees are waived
Buyer Qualifications
§ Must be a first-time homebuyer (applicant must not have owned a home within the past 3
years)
§ New construction properties must be located within the CDBG target area.
§ Existing unit purchase with rehabilitation not restricted to the CDBG target area
§ Must meet lender credit standards
§ Total household income must not exceed maximum federal income limits
§ Housing expenses (PITI) cannot exceed 30% of gross monthly income unless approved
by primary lender