RIVERSIDE COUNTY HOMEOWNERSHIP ASSISTANCE PROGRAMS Updated as of

RIVERSIDE COUNTY HOMEOWNERSHIP ASSISTANCE PROGRAMS Updated as of 8/9/10 All information is subject to change without notice 1

Purpose n n Overview Assistance Type & Amount Eligible Locations & Search Tools Starting Point and Process for Buyers 2

Programs n n Each of the County’s 4 programs has a different funding source Each program therefore has a different set of guidelines 3

FTHB FIRST TIME HOME BUYER 4

FTHB- Type of Assistance n n n EDA’s original first time buyer program Up to 20% of the purchase price for down payment assistance not to exceed $75, 000 Silent 2 nd mortgage with no monthly payments at 0% interest forgiven after 15 years No resale restrictions or equity share component No minimum buyer contribution towards down payment required 5

FTHB- Property Requirements n No Foreclosed, Bank Owned Properties Allowed 2010 -2011 allocation ok for REO’s (when funds received) n n Purchase price & appraised value cannot exceed $292, 686 Sales price limits are subject to change SFR, condo/townhouse/PUD or NEW manufactured home (on permanent foundation) n No In-Ground Pools or Spas n Minimum 2 Bedrooms 6

FTHB- Property Requirements, Continued n n If property was tenant occupied, tenant must have been given 90 day’s written notice to vacate at least 90 days prior to the initial offer to purchase (exception- when a tenant is going to purchase the home they’re currently renting) If property is currently owner occupied- 90 day vacancy requirement is waived 7

FTHB- Eligible Locations 1. Unincorporated Areas of Riverside County Shaded Yellow in the Thomas Guide 2. Or within any Participating City All Cities are Eligible EXCEPT: Calimesa, Coachella, Corona, Hemet, Indio, Moreno Valley, Palm Desert, Palm Springs, Perris, Rancho Mirage, Riverside 8

RHP REDEVELOPMENT HOMEOWNERSHIP PROGRAM 9

RHP- Type of Assistance n n n Redevelopment Agency for the County of Riverside (RDA) Up to 20% of the purchase price for down payment assistance not to exceed $75, 000 Silent 2 nd mortgage with no monthly payments at 0% interest forgiven after 45 years No equity share component If buyer sells home within 45 year affordability period, it must be offered to or otherwise made available for purchase by qualified low or moderate income households No minimum buyer contribution towards down payment required 10

RHP- Property Requirements n n n n Foreclosed, Short Sale or “Normal” Private Party sale OK Purchase price & appraised value cannot exceed $292, 686 Sales price limit subject to change SFR, condo/townhouse/PUD or NEW manufactured home (on permanent foundation) No In-Ground Pools or Spas Minimum 2 Bedrooms If property currently is or was tenant occupied, seller must have given tenant 90 day’s written notice to vacate at least 90 days prior to initial offer to purchase If property is currently owner occupied or was owner occupied at foreclosure for REO’s- 90 day vacancy waived 11

RHP- Eligible Locations 1. Unincorporated Areas of Riverside County -or 2. County Redevelopment Areas

RHP- Eligible Location Detail Option #1 n Properties in Unincorporated areas of Riverside County- Shaded Yellow in the Thomas Guide *Menifee and Wildomar recently became cities but may still show as unincorporated areas on the Thomas Guide n TLMA Map shows Property as Not Being Within a City Limit 13

1. Click here Step by step instructions

2. Enter APN & Click “GO” 4. Not within a City= Unincorporated 3. Run Standard with permits report

RHP- Eligible Location Detail Option #2 n n Riverside County Redevelopment Areas are RHP Eligible Locations TLMA Map shows that property is within a Riverside County Redevelopment area: 1 -1986, I-215, Mid County, Jurupa Valley, Desert Community

2. Enter APN & Click “GO” 4. If there is a project area name, property IS in a county redevelopment area 3. Run Standard with permits report

NSHP NEIGHBORHOOD STABILIZATION HOMEOWNERSHIP PROGRAM 19

NSHP- Purpose 1. Stabilize neighborhoods with a high number of foreclosures. 2. Provide purchase price assistance to first time home buyers for the purchase of a foreclosed home in certain target areas of Riverside County. 3. Provide optional home rehab/repair assistance. 20

NSHP- Background n n From 2008 HERA Act passed by President Bush Limited Funds Available- See Participating Lender for Details 21

NSHP- Purchase Price Assistance 1. Purchase Price Assistance n Up to 20% of the purchase price for gap assistance (makes up the difference between the 1 st TD & purchase price). n Silent 2 nd mortgage with no monthly payments at 0% interest forgiven after 15 years n No resale restrictions or equity share component n No minimum buyer contribution towards down payment required 22

NSHP- Optional Rehab Component 2. Home Rehab/Repair Assistance (optional) n To increase long term affordability and sustainability n MINOR Curb appeal, landscaping and energy efficient improvements n Silent 3 rd mortgage requiring no monthly payment at 0% interest forgiven after 15 years n Rehab items identified by EDA prior to close of escrow n Rehab starts after the client moves into the home Purchase price assistance 2 nd loan + Rehab/Repair assistance 3 rd loan Not to Exceed $75, 000 Total 23

NSHP- Property Requirements n n n Foreclosed, Bank Owned Only Purchase price not to exceed $292, 686 (Subject to Change) SFR, condo, PUD or manufactured home (on permanent foundation) built 1979 or later If property was tenant occupied at or after foreclosure, foreclosing lender must have given 90 day’s written notice to vacate at least 90 days prior to buyer’s initial offer to purchase If previously owner occupied- 90 day vacancy requirement is waived Purchase price must be at least 1% below fair market value as appraised by EDA 24

NSHP- Eligible Locations n n Within the NSHP Target areas of Riverside County Target areas include a portion of 15 cities and 10 unincorporated areas: Cities: Banning, Beaumont, Blythe, Canyon Lake, Cathedral City, Desert Hot Springs, Indio, Lake Elsinore, Menifee, Murrieta, Norco, Perris, San Jacinto, Temecula, and Wildomar. Unincorporated Areas: East Hemet, Eastvale, French Valley, Highgrove, Home Gardens, Lakeland Village, Rubidoux, Temescal Canyon, and Thousand Palms, Winchester 25

NSHP- Target Area Search Step 1: NSP Target Area Search n Search by the APN or Address n Provides a confirmation of the property eligibility with a “Congratulatory” message n EDA website at www. rchomelink. com 26

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1. Enter APN 2. Select APN

NSHP- Target Area Maps n n Step 2: NSP Target Area Maps If property does not produce “congratulatory message” To get a general idea of target areas (useful when showing properties) 31

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NSHP Target Areas TARGET AREA NAME DISTRICT HUD RISK SCORES NSP MAP NUMBER Lakeland Village / Wildomar Lake Elsinore Temescal Canyon 1 1 1 8. 9 7, 8, 9 8 I– 1 I– 2 I-3 Eastvale Home Gardens Norco Rubidoux 2 1, 2 2 2 8 8, 9, 10 7, 8, 9 II – 1 II – 2 II – 3 II - 4 Canyon Lake East Hemet French Valley Menifee Murrieta San Jacinto Temecula 3 3 3 3 8, 9 8 8, 9 7, 8 III – 1 III – 2 III – 3 III – 4 III – 5 III – 6 III - 7 Blythe Cathedral City Indio Thousand Palms 4 4 9 7, 8, 9 9, 10 IV – 1 IV – 2 IV – 3 IV - 4 Banning Beaumont Desert Hot Springs Highgrove Perris 5 5 5 8, 9, 10 8, 9 10 9 8, 9 V– 1 V– 2 V– 3 V– 4 V-5 33

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Buyer Qualifications for FTHB, RHP and NSHP n n n Must be a first-time homebuyer: no ownership interest in real estate in the past 3 years Buyer within income limits Primary Residence Must attended 8 hour homebuyer education course from HUD approved provider Riverside County Programs have NO minimum credit score or quality requirement. Buyer must qualify for eligible 1 st mortgage (30 year term, fixed rate, fully amortized) through participating lender 36

Home condition for FTHB, RHP and NSHP n n A home will not be eligible for purchase under these Programs unless it is in “standard” condition and suitable for occupancy upon purchase. Homes purchased through these programs must meet Housing Quality Standards (HQS) Home inspections are required on all homes All health and safety issues on home inspection report are repaired prior to EDA drawing docs 37

MCC MORTGAGE CREDIT CERTIFICATE 38

MCC- Type of Assistance n n Not a down payment Assistance Program Entitles qualified homebuyers to a federal income tax credit in the amount of 15% of the interest paid on the primary mortgage Borrower’s income taxes reduced by amount of the credit, increasing the take-home pay by the amount of the credit. The amount of the MCC is taken into consideration by the 1 st mortgage underwriter and may give the borrower more buying power 39

MCC- Type of Assistance Con’t n n MCC May be combined with FTHB, RHP and NSHP programs Recapture tax may apply if borrower sells home 1)at a profit and 2)before end of first 9 years and 3)is over the income limit at time of sale 40

MCC- Calculating the Annual Credit 1 st Mortgage Loan Amount x Interest Rate x 15% Example: Loan Amount = $200, 000 Interest Rate = 6% MCC = $200, 000 x 6% x 15% = $1, 800/yr n 41

MCC- Tax Deduction vs. Tax Credit n n A tax deduction (such as mortgage interest or property taxes)is subtracted from adjusted gross income before federal income taxes are computed, decreasing taxable income A tax credit entitles a tax payer to subtract the amount of credit from their total federal tax bill 42

MCC- Buyer Qualifications n n Must be a first-time homebuyer: no ownership interest in real estate in the past 3 years Exception- if buyer purchases property located in an MCC Target Area Census Tracts Buyer within income limits (see matrix) Exception-higher income limits apply within MCC Target Area Census Tracts Will occupy subject property as primary residence No minimum credit score or quality requirement-defer to the 1 st mortgage lender’s credit underwriting 43

MCC- Property Requirements n n n Foreclosed, Short Sale or Private party sales are all OK Purchase price limits Outside Target Area $450, 000 Inside Target Area $550, 000 SFR, condo/townhouse/PUD or manufactured home (on permanent foundation) 44

MCC- Eligible Locations All areas in Riverside County are eligible for MCC assistance EXCEPT the following cities: Banning, Indian Wells, Palm Desert and Rancho Mirage 45

Target Areas Census Tracts n n 1. 2. 3. n Target areas are census tracts designated by the Federal government to encourage investment. If a property is within an MCC target area census tract: first time buyer requirement is waived higher income limits apply higher purchase price limits apply See website for specific census tract numbers -A property does not have to be in an MCC target area census tract to qualify for the MCC program-

QUALIFYING PROCESS FTHB, RHP, NSHP & MCC n n n Borrower works with participating loan officer on County List Lenders go through rigorous corporate approval process and loan officers must attend annual training Loan officer pre-qualifies borrower simultaneously for 1 st mortgage and County Assistance Loan Officer is responsible for providing pre-qualification letter and informing buyer and realtor about program details Program forms must accompany offer for seller’s signature (RHP 3; FTHB 3; NSHP 3) Buyer enters into purchase agreement, escrow opens, lender processes file and submits complete application package to EDA 48

INCOME LIMITS (as of 8/2010) FTHB, RHP, NSHP & MCC INCOME LIMITS NSHP FTHB RHP Outside Target Area FAMILY SIZE 1 $54, 600 $36, 400 $54, 600 2 $62, 400 $41, 600 $62, 400 3 $70, 200 $46, 800 $70, 200 4 $78, 000 $52, 000 $78, 000 5 $84, 250 $56, 200 $84, 250 6 $90, 500 $60, 350 $90, 500 7 $96, 700 $64, 500 $96, 700 8 $102, 950 $68, 650 $102, 950 $71, 000 $81, 650 MCC Inside Target Area $85, 200 $99, 400 49

QUESTIONS? 50

EDA HOUSING STAFF - Leslie Trainor ltrainor@rivcoeda. org - Bernadette Cruz bcruz@rivcoeda. org - Melissa Barnes mbarnes@rivcoeda. org 951 -955 -3389 3403 10 th Street, Suite 500 Riverside, CA 92501 51