Homeownership Programs & Home Purchase Opportunities
The City of Santa Ana has programs to assist households to purchase homes. One option would be to apply for one of the City’s downpayment assistance programs. Another is to purchase an affordable home developed in partnership with a developer and the City and/or Redevelopment Agency. For all City homeownership programs, applicants must complete a pre-purchase homebuyer counseling program. For approved counseling centers, please visit the Department of Housing and Urban Development’s (HUD) listing of Approved Homebuyer Counseling Centers. For a list of Orange County Centers click here.
This website will also periodically include information about programs carried out by other agencies.
Neighborhood Stabilization – Downpayment Assistance Program
The City is offering downpayment assistance loans to low and moderate income households to purchase a home in the foreclosure process. Income eligible households can receive a maximum downpayment loan for 10% of the sales price or $40,000, whichever is lower. An eligible property MUST be foreclosed or in the short sale process. A minimum 1% discount below the appraised value of the home may be required. Borrowers must qualify for conventional first mortgage loan and provide loan approval verification. An application must be completed and approved prior to closing escrow. For more information, please call (714) 667-2250.
American Dream Downpayment Initiative (ADDI)
This federally funded program aims to increase the homeownership rate among lower income households. ADDI is a downpayment assistance program for first-time homebuyers that provides funds for the downpayment and/or closing costs. Income eligible households can receive a maximum downpayment loan for up to 6% of the purchase price or $10,000, whichever is greater. An application must be completed and approved prior to closing escrow. For more information, please call (714) 667-2250.
Neighborhood Stabilization Program Homes for Sale
ANR Industries, Inc. (ANR) was selected by the City to implement the Single Family portion of the Neighborhood Stabilization Program (NSP). ANR has purchased, renovated, and is now selling previously foreclosed homes to eligible homebuyers.
All applicants must be pre-Qualified with Bank of America. However their first mortgage can be from any lender as long as the loan meets program requirements. Homeowners will be selected by lottery when there are multiple qualified homebuyers.
For a listing of currently available homes and frequently asked questions regarding the program please visit www.santaanahomeownership.org
Orange St. - Single Family Homes
The Community Redevelopment Agency has partnered with RSI to create two single family homes. Located at 1112 and 1118 S. Orange Ave., both homes are 2-stories and have detached garages. The 4-bedroom and 3-bath home is 1,968 sq. ft. and the 3-bedroom and 2-bath home is 1,621 sq. ft. There will be a preference for those who currently reside and/or work in the City of Santa Ana. Both homes will be sold to income eligible households. Prospective homebuyers must complete an application and enter a lottery. The application is due Friday, April 9th, 2010 at 5PM to RSI McFadden, LLC. Postmarks will not be accepted for deadline purposes. For more information and an application, please see the RSI website or call (510) 964-1204.
Mortgage Credit Certificate Program (County of Orange)
The Mortgage Credit Certificate Program (MCC) allows eligible households to purchase a home by enabling them to take as much as 15% of their annual mortgage interest payment as a dollar-for-dollar credit against their federal income tax. This program enables participants to reduce their federal income tax withholding making their monthly income available for mortgage payments. The credit can be applied through the life of the mortgage, provided that the original homebuyers remain the legal owners and continue to use the home as their principal residence. For more information, please contact:
Laurie Sachar
County of Orange
333 W. Santa Ana Blvd., 3rd Floor
Santa Ana, CA 92701
(714) 834-6009
Laurie.sachar@ocgov.com
New Home Purchase Tax Credit (State of California)
This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date. The State of California has begun accepting and processing applications for allocation of credit on a first-come, first-served basis.
First-Time Homebuyer Credit (Federal)
First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:
- Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
- Applies only to homes used as a taxpayer's principal residence.
- Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
- Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made before Dec. 1, 2009. For homes purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.