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Town of Paradise First Time Home Buyer Program

Paradise, California

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Repayment

Deferred

No payments until the home is sold or refinanced

What is Town of Paradise First Time Home Buyer Program?

Town of Paradise First Time Home Buyer Program is a deferred second loan for homebuyers in Paradise, California.

  • Gap-financing deferred loan. Lender pre-qualifies borrower; Town fills the affordability gap. 30-year term. Interest 1% accrues only first 10 years. Secured by note and deed of trust.
  • Deferred low-interest gap loan based on Federal 2025 Income Limits to assist first-time homebuyers in Paradise (Butte County). Loan amount = gap between affordability and home price. 1% interest accrues for first 10 years only.
  • Funding comes from State/federal grants (CDBG, HOME).

Do you have to pay it back?

Town of Paradise First Time Home Buyer Program 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, change of primary residence, title transfer, 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?

Town of Paradise First Time Home Buyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Required - HUD-approved
  • Sourced via Homebuyer Wallet (CA260154). Must be a first-time homebuyer (no homeownership in prior 3 years). 1% interest accrues only during first 10 years. Loan due in 30 years OR upon sale, change of occupancy, or title transfer. Funded through CDBG and HOME state/federal grants.

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Town of Paradise First Time Home Buyer Program sets its income limit as follows: Per Federal 2025 Income Limits (Butte County), low-income (80% AMI).

  • 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?

Town of Paradise First Time Home Buyer Program can be used for Single-family, Condo, Townhouse.

Where does it apply?

Town of Paradise First Time Home Buyer Program serves buyers purchasing in Paradise, California.

How do you apply?

Applications for Town of Paradise First Time Home Buyer Program go through the administering agency.

  1. Take a homebuyer education course

    Required by the program, through Required - HUD-approved.

  2. Contact the administering agency to reserve funds

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

  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.

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