HBAP

The mission of the Home Buyer Assistance Program (“HBAP”) is to promote neighborhood stabilization and the economic well-being of the community through increased homeownership, principally for the benefit of low and moderate income individuals and families.

Equity Sharing. For most applicants, down payment assistance is

provided in the form of a secured subordinate mortgage with contingent, deferred interest in the form of an equity share in the property. Loan proceeds may only be used toward the purchase of a single family home, condominium, or townhome located within the City of Port Hueneme. Eligible Borrowers are low or moderate income first time buyers, regardless of the city of current residency.

Loan Amount. The City’s down payment assistance is designed to serve as gap financing. The loan amount is computed as the difference between the largest first trust deed mortgage deemed affordable to the Borrower by the participating lender and the Borrower’s down payment. The maximum assistance available under HBAP is different for low and moderate income Borrowers. In any case, the HBAP loan amount may not exceed the lesser of the following:

20% of the purchase price
20% of the appraised value
$60,000

First Time Buyer. A first time buyer is defined as a person who:

Has not owned a home inside or outside the U.S. in the past three years.
Has previously owned a home with a spouse, but no longer holds title due to a divorce.
Has owned a home not permanently affixed to a foundation (a mobile home).

Income Limits. Household income includes gross wages before deductions, tips, bonuses, commissions, unemployment, social security, SSI, pensions, CalWorks, child support, alimony, disability payments, workers compensation, rental income, interest and dividend income, plus net income from owning or operating a farm or business, and any other income received regularly. Income of all persons over 18 years of age in the household must be included in the computation of household income, even if some adult members of the household will not be signatory to the first or second mortgage. The projected annual household income for HBAP Borrowers effective March 19, 2009 may not exceed the following:

Household Size

Maximum Annual Income

1

$ 72,300

2

$ 82,650

3

$ 92,950

4

$ 103,300

5

$ 111,550

6

$ 119,850

7

$ 128,100

8

$ 136,350

Down Payment. The Borrower must contribute a minimum of 5% of the purchase price. At the discretion of the participating lender, all or part of the minimum down payment may be gift funds. Larger down payments will be required where buyers would otherwise retain liquid or convertible assets of more than $10,000 after closing costs.

Interest Rate. HBAP loans bear interest in the form of an equity share in the property. The equity share is equal to the percentage that the City’s HBAP loan represents of the purchase price of the property. See the Equity Share Interest Computation Sample. For example, if the City funds a $30,000 loan to assist in the purchase of a $300,000 home, the City’s equity share will be 10% ($30,000/$300,000 = 10%). Equity share interest is gradually forgivable over the loan term. See the Equity Share Interest Forgiveness Schedule. Eligibility for interest forgiveness may be forfeited in the event of fraud or violation of the terms of the HBAP loan.

Loan Term. The HBAP loan must be repaid after forty-five years, or at such earlier time as any of the following occurs:

The property is sold or title is transferred
The Borrower no longer occupies the property as a principal residence
The property is refinanced

Post-Purchase Occupancy. HBAP-assisted buyers must continuously reside in the property purchased with HBAP assistance. No dwelling assisted under HBAP may be occupied by more than two (2) persons per bedroom.

Financial Capacity. Borrowers must qualify for a thirty year fixed rate first mortgage through a participating lender approved by the City of Port Hueneme. Co-signers who will not reside in the property are not permitted.

Code Compliance. Eligible property must comply with local land use regulations, building codes, and Federal Housing Quality Standards. Defective paint surfaces must be tested for lead-based paint. Corrections, if required, must be made in accordance with all State and Federal standards. At the City’s discretion, and in all cases where property is sold “as is,” a code compliance inspection will be required and HBAP loan approval may be contingent upon the completion of specified repairs.

Escrow Requirements. All HBAP-assisted purchase transactions must be processed through a local escrow company, which has been trained and approved in advance by the City of Port Hueneme. Contact City staff or the participating lender for a current list of approved escrows.

Photo Gallery. Click here to view examples of typical Port Hueneme housing stock.

Print Summary. Click here to view and/or print a copy of the City’s Summary Guidelines for the Home Buyer Assistance Program.

Household Size	Maximum Annual Income
1	$ 72,300
2	$ 82,650
3	$ 92,950
4	$ 103,300
5	$ 111,550
6	$ 119,850
7	$ 128,100
8	$ 136,350