Eligibility and Financing

1. Program Eligibility Requirements

  • Property must be owner-occupied; no investor purchases are permitted.
  • No members of the household can currently have an ownership interest in another property (prospective buyers cannot be on the title to nor a mortgage loan for another residence).
  • Buyer’s must qualify for and obtain a conventional, fixed-rate first mortgage loan and a City ‘Silent Second’ loan on the property.
  • Homebuyer must provide a minimum 3% down payment of their own funds. Additional gift money or down payment assistance can be layered, but Homebuyer minimum investment is 3% of their own funds. Funds must be 'seasoned' and documentable.

2. Income Requirements

  • All homes sold under the NSP program will be sold to persons who meet the income guidelines stated below
    (requirements effective June 13, 2011). Area Median Income Guideline (AMI; 50% or 120%) will be determined when a property is listed for sale. Please check the Properties page for further information on a specific residence's requirements.  

    120% Area Median Income Guidelines

    Family Size Maximum Household Income
    1 $77,550
    2 $88,600
    3 $99,700
    4 $110,750
    5 $119,600
    		          

    50% Area Median Income Guidelines

    Family Size Maximum Household Income
    1 $36,950
    2 $41,550
    3 $46,150
    4 $49,850
    5 $53,550

3. Homebuyer Counseling Session

  • All Homebuyers must attend an 8-hour Homebuyer Counseling Session with a HUD-Approved Counseling Agency. A certificate of completion must be provided prior to close of escrow.

4. City Silent Second Loan Terms

  • Property must be owner-occupied.
  • Homebuyers will obtain a 'Silent Second' loan at 3% interest (45-years deferred = no payments on this loan for 45 years). Silent Second loan amount varies per property (please consult property’s Listing Agent for specific property details).
  • Interest is forgiven at the rate of 1/45th per year, and is 100% forgiven after 45 years.
  • If you sell the home prior to the 45 year term, the Silent Second Loan plus applicable interest must be repaid to the City*
    (*Amount of repayment varies by terms of sale; please consult the property's Listing Agent for more information)
  • To download a flier summarizing the Santa Ana Home Ownership Program, please click here (English) | Spanish | Vietnamese.

5. Additional City Financing Available

6. Prequalification

  • All prospective buyers must prequalify to purchase for this program utilizing the lender designated for the property they are interested in (a prequalification lender is assigned to each property; please see the 'Properties' page to view current listings). A prequalification letter stating you meet the City's program debt, income and other financial requirements must accompany your offer to purchase a property. Please note that offers submitted without a Prequalification letter will be deemed incomplete and ineligible for review.
  • Prior to contacting the Prequalification lender for a specific property, you may download the Eligibility Application Package here, to begin compiling the documents that will be necessary to complete your prequalification process.