Chico City Subsidy is ramping up
Friday, June 12, 2009
Get ready for the Chico City Subsidy program. How? By getting prequalified by a good lender, and then picking out a property. This money does not last long, so be one of the lucky few!
Combine this with a short sale and an 8K IRS credit, and it makes a lot of sense to buy now.
Per Becke Reid of Access Lending-
I went to a Fantastic training this morning at the City of Chico Housing Dept with Lisa Gray. They are going to have the same amount available this year at $1.9 million dollars and last year they helped about 35 families get into their first home and in 2009 they are hoping that number jumps up to 40 to 45. They are changing the amount of subsidy based on a percent of purchase price instead of a flat amount in hopes that it will be able to help more people! The information was similar to the previous program with a few important changes. One of which is the sales price maximum is $299,200. But I think the 2 biggest ones that will affect the realtors are 1.) There is now a copy of a whole house inspection that is required by the City of Chico, and 2.) A copy of the pest report with the clearances for section I and possibly section II items cleared as well if they are “health and safety” related. Water leaks, and items of that nature will need to be addressed, even if they are a section II item.
They will start taking full lenders packages on July 1st which means that the earliest any file can close is July 17th if everything goes perfectly!!
She went over how they calculate the income which is, obviously, huge part of qualifying a borrower for this program so I was really happy to see that info!
