Details and Mapping for Redding Neighborhood Stabilazation Program (aka C4-HAP)
Buying REO Homes, First Time Buyers
February 15th, 2010
The City of Redding is referring to the C4-HAP program as the Neighborhood Stabilization Program (NSP). Here is a link to online mapping service to determine if an REO property is located in an approved census tract. City of Redding tracts are; 101-1, 101-2, 103-1, 103-2, 106-1, 106-2, 106-3, 107.01-1, 107.01-2, 107.01-3, 108.01-1, 108.01-2, 108.01-3, 108.02-1, 108-02-2, 108.02-3, 110-1, 110-2, 110-3, 110-5, 110-6, 113-1, 113-2, 113-3, 113-4, 114-1,118.01-1, 118.01-2, 118.01-3 and 118-1.
A few more details;
- Home must be bank owned
- Maximum C4-HAP loan-up to 40% of purchase price, max $65k
- C4-HAP Loan – 30 year, 0% interest, forgiven over 5 years.
- Occupancy – Must be used as primary residence.
- Max Purchase Price – $190,000
- Anti-Displacement – Home must be vacant at time offer made.
- Appraised Value – Purchase price must be 1% below appraised value based on an appraisal through Shasta County (No cost to applicant)
- Eligible Homebuyer – Applicant can’t be on title to any real property as of the date of eligibility determination.
- Primary Loan – Must be a 30 year fixed rate, impound account mortgage.
- Credit History – All collections and judgements must be paid prior to close of escrow.
- Homebuyer Class – 8 hour homebuyer class mandatory prior to close of escrow.
- Housing Expense Ratio - Total mortgage payment must be at least 26% of applicants monthly gross income.
- Long-term Debt Ratio – Total mortgage payment combined with all other long term debt payments cannot exceed 49% of applicants monthly gross income.
- Condition of Home – Must be inspected by Housing Program staff, must meet HQS standards and applicable building codes, all repairs must be completed prior to close of escrow, section 1 pest clearance required, some lead based paint requirements on pre- 1978 homes.
