In Lancaster, California, the dream of homeownership is becoming more of a reality for first-timers, thanks to the City’s First-Time Home Buyer Program. The local government, as part of a concerted effort to combat the daunting housing market, is doling out down payment assistance to new buyers, like the Birt family, who just closed on their first home. Mayor R. Rex Parris of Lancaster has hailed the initiative, “The City Council has made it a priority to give these hard-working families a hand up. This program not only helps them bridge the funding gap to buy their first home; it also puts them on a solid path to building generational wealth," he said in a statement acquired by the City of Lancaster's press release.
With house prices skyrocketing, the First-Time Home Buyer Program is designed to help alleviate the struggle for those hoping to own their first property in Lancaster, where the median sale price recently hit around $463,000. Aspiring homeowners finding themselves priced out are offered loans up to $150,000 or 40% of their purchase price, through this program. Mayor Parris told the City's newsroom, "For the families that have benefited from the program, it's been life-changing for them to be able to buy a home in the community they want to live in."
To qualify, applicants must come under 80% of the area median income, capping at about $100,900 for a four-person household, and satisfy other criteria. Designed as a second mortgage, the program's loans are no-interest, with payments deferred until the home is sold. This approach aims to lighten the monthly financial load for buyers, who are also expected to fork out a minimum of 3% towards the down payment—lower than most conventional mortgages.
Boasting a limit of $570,000 for eligible houses under the program, the city’s loans are forgivable after 15 years, provided the homeowner remains in the residence. As stipulated, "for every year a homeowner resides in their home after the sixth year, 10% of the loan is forgiven, with complete forgiveness achieved if the homebuyer stays in the house for at least 15 years," as per the program's guidelines. To learn more or apply, interested parties are encouraged to visit the City of Lancaster’s official website.
