First Time Home Buyer

Qualifying Conditions for City of Oroville First Time Home Buyer Program (FTHB) and CDBG Home Ownership Program (HOP)

Family gross annual income may not exceed the Butte County Area Median Income by the following:

 Butte County Area Median Income "AMI" for a family of 4 is $55,800.

Loans are based on total household income and family size (If your income exceeds these limits perhaps you may qualify for our RDA Home Ownership Program)

The maximum loan amount is as follows: families earning up to 80% of area median income may qualify for a maximum loan amount that is 45% of the purchase price not to exceed $100,000.,

Special Conditions,

• Family must be a “first time home-buyer” (has not owned a home in the last three (3) years to be eligible for the City of Oroville's FTHB Program or must not currently be on title to real property to be eligible for the City of Oroville CDBG Homeownership Assistance Program (HOP).
• The maximum sale price of the home can not exceed $200,000.
• The home purchased must be located in the Oroville city limits.
• The home must meet all “Housing Code” requirements or be rehabilitated to meet “code” standards prior to the close of escrow.

Repayment Conditions

• A mortgage subsidy loan is secured by a Deed of Trust and does not require monthly payments.
• Repayment of the loan will be required if the house is sold, title is transferred, or if the house is no longer a family’s principal residence.
• When refinancing your home loan, always check with the Business Assistance/Housing Development Department to see if repayment of the loan is required.
• The City loan is as deferred payment loan with 3% simple interest. 
• Depending upon the primary loan the City's loan may be a 30-year or 40-year loan term that runs concurrently with the primary loan.

FTHB/HOP Program Checklist

• Mandatory Home Buyer Workshop and Budget Workshop are required.  These workshops will provide the educational information needed to look for a lender, real estate agent, and to teach the fundamentals to purchase a home.  You may call the City's Business Assistance and Housing Development Department at (530) 538-2495 to reserve your spot for a class and to obtain additional information.
• Make an appointment with a residential lender; of your choice to request a “pre-qualifying interview”.  The lender will review your employment and credit history, your current financial situation and your household budget.  The lender will determine the amount of home loan for which you may qualify.
• Following pre-approval from the lender, the application with all required information for the Homebuyer can be returned to the City of the Oroville.
• Once the lender has determined your pre-qualification, and the city has determined your eligibility for the loan subsidy, you can start looking for a home.  Prior to opening escrow, your real estate agent should contact the Business Assistance and Housing Development Department for the availability of funds.