City of Watsonville First Time Homebuyers

What is City of Watsonville First Time Homebuyers?

City of Watsonville First Time Homebuyers is a deferred second loan for homebuyers in Watsonville, California.

• 30-year 1% simple-interest deferred loan. Repayment due at sale or refinance.
• Deferred-payment loan at 1% simple interest for low- to above-moderate-income first-time homebuyers in Watsonville. 30-year deferral.
• Funding comes from City of Watsonville Housing Funds.

Do you have to pay it back?

City of Watsonville First Time Homebuyers is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by sale, refinance, or end of 30-year term.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Watsonville First Time Homebuyers is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Watsonville First Time Homebuyers limits household income to 1% of the area median income, which varies by county and household size.

• Per HCD income schedule, low-to-above-moderate (varies by household size, Santa Cruz County).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Watsonville First Time Homebuyers can be used for Single-family, Condo, Townhouse.

Where does it apply?

City of Watsonville First Time Homebuyers serves buyers purchasing in Watsonville, California.

How do you apply?

Applications for City of Watsonville First Time Homebuyers go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Required - City-approved homebuyer education.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.