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The Program provides homeownership assistance in the form of a forgivable loan, up to $350,000 per qualifying household. The homebuyer assistance is designed to cover the funding gap between the First Mortgage Loan amount and the purchase price of a home.
Program eligibility is limited to LMI homeowners and renters whose primary residence was located in high or very high Fire Hazard Severity Zones at the time of the qualifying disasters.
2018 Qualifying Disaster Areas:
Butte, Lake, Los Angeles and Shasta Counties.
2020 Qualifying Disaster Areas:
Butte, Fresno, Los Angeles, Napa, Santa Cruz, Shasta, Siskiyou, Solano and Sonoma Counties.
The Applicant(s) must meet the income limit of LMI households, as defined by HUD as Area Median Income of 80% and below as published on the HUD website and based on household income, and the County in which the property being purchased is located.
The homebuyer assistance provided through the Program is in the form of a forgivable deferred Second Mortgage Loan with a zero percent note rate. The HBA Loan is intended to cover the Applicant’s down payment, closing costs (customary/reasonable), and prepaid expenses up to a cap of $350,000. It is completely forgiven after the 5-year ownership and occupancy requirement has been met (20% is forgiven pro-rata each year).
Complete program policies and eligibility requirements can be found in the DR-HBA Program Terms Sheets, published on the GSFA website in the Lender Participation Guide.
Additional Resources
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