1. Which type of properties are eligible? The FTHB program may be used to purchase any new or resale single family houses, condos,  townhomes, and manufactured homes that are permanently fixed to a permanent foundation, and occupied by the seller, the buyer, or vacant.  The City of San Luis Obispo also offers for-sale inclusionary houses that you may be qualified to use the FTHB funds.

2. Where can I purchase my home using FTHB loans? The First Time Homebuyer program is designed to assist homebuyers to purchase properties located within the County of  San Luis Obispo excluding the Cities of Pismo Beach and Morro Bay.

3. What is the maximum purchase price? The maximum purchase price for a single family house or a manufactured house is $475,000 and for a condominium is $362,790.

4. What is the maximum loan amount? The maximum loan amount is $90,000. The homebuyer is expected to contribute at least 30% of gross income toward monthly housing expenses

5. Do you qualify? You can apply if you meet the following criteria:

   1. Low income household that are 80% of the County median annual income (See Income Chart).
   2. First time homebuyer (has not owned a principal residence in the past 3 years)
   3. Qualified for a primary private loan
   4. Provide 2% homebuyer contribution towards downpayment and closing costs.

6. What are the loan terms? The First Time Homebuyer loan assistance is recorded as a second mortgage on your home. The terms are:

   1. Interest Rate: Simple non compounding fixed interest rate of 3%
   2. Homeowner Contribution: 2%
   3. Loan Term: 50-year loan
   4. Payment Type: Deferred payment until year 21 or the home is sold, transferred, or refinanced.

7. Who to contact for further information on the First Time Homebuyer Program? The City of San Luis Obispo Housing Authority is implementing the County of San Luis Obispo First Time Homebuyer Program. The main contact person is Debbie Zavala at the City of San Luis Obispo Housing Authority can be reached at 805-594-5305.

8. What is the process to apply for the First Time Homebuyer Program? You need to contact a participating lender for eligibility. Once you are pre-qualified for a maximum home price, you may locate a home to purchase. When you located a home, you will need to make a purchase offer and start the escrow process.  You lender will assist you to complete the application material for the FTHB program. The Housing Authority will send documents to the County for environmental clearance and sign off. When escrow closes, you will become a homeowner.