Redding, California

NEW FUTURES HOME PURCHASE PROGRAM
MOVE INTO HOMEOWNERSHIP...

The New Futures Home Purchase Program (New Futures) provides a second mortgage loan to eligible buyers to help them purchase new residences that have been developed with financial assistance from the Redding Redevelopment Agency (Agency). The home must be located within the Parkview or Martin Luther King, Jr. Neighborhoods (see neighborhood boundary maps).

Applicant Qualifications

• All eligible buyers. (Need not be a first-time homebuyer)
• Household income must not exceed guidelines*
• Credit history must meet requirements
• Employed for two years in the same line of work or have an ongoing source of income
• Qualify for a primary mortgage loan through a lender
• Provide a downpayment equal to 5% of the purchase price plus closing costs. A minimum of 2.5% must come from the buyer, the remaining 2.5% downpayment and closing costs can be gifted
• Home must be used as a primary residence
• Not be able to purchase the home with current assets

Maximum Purchase Price
The maximum purchase price of the home cannot exceed the current value of the home as determined by an appraisal at the time the purchase contract is executed.

Maximum Loan Amount
The maximum New Futures loan can be up to 45 percent of the purchase price, not to exceed $75,000. The loan amount will depend on the buyer's downpayment amount, the amount of the first mortgage, and the purchase price of the home. No monthly payments are required on the New Futures loan. The loan is assumable by a buyer who meets all program requirements.

Loan Repayment
At the time of loan payoff, the principal loan amount must be repaid plus a percentage of the appreciated value of the home. The percentage is determined by the amount of the New Futures loan compared to the purchase price of the home. For example, if the loan was 25% of the original purchase price, the borrower will owe the principal loan amount plus 25% of the difference between the original purchase price and the sales price or other payoff of the loan. To encourage continued occupancy, the share of the appreciated value received by the Agency will decrease 2% per year in years six through ten for a total maximum reduction of 10%.

For more information about the program, please contact Jodi White at 225-4173.

*INCOME GUIDELINES (Effective March 31, 2005)