First-Time Homebuyer Assistance Program

The County annually seeks funding for low-income-qualified borrowers to purchase their first home in an unincorporated area of the County. Stick-built and manufactured homes may be eligible. 

The waiting list for HOME funded First Time Homebuyer Loans is currently closed, but we are actively pursuing funding to continue the program.


This program offers assistance in the form of a gap loan, also known as "a silent second," to help first-time homebuyers with down payments, principal, and closing costs on first-time home purchases. Applicants are served on a first-come, first-served basis, and qualified applicants must be low-income but earn enough income to qualify for a primary loan.

Please see the Information sheet links below for printable details on the program. 

WHAT ARE FIRST-TIME HOMEBUYER LOANS?

These are gap loans for qualified First-Time Low-Income Homebuyers. They fill the "gap" between the funds the borrower has and the funds the borrower needs. They are subsidized in two ways: 1) fixed 3% simple interest (in other words, interest accrues annually on the principal only) and 2) payments are deferred for 30 years. Loans may be repaid at any time without penalty, but payments are not required for 30 years as long as program guidelines are satisfied.

ARE YOU ELIGIBLE?

• Participating households must earn less than 80% of the Area Median Income adjusted for household size. Currently, the maximum gross income for a household of four is $75,100 per year.

• First Time Homebuyer status means a family can show that they have not owned property in the past three years.

WHICH PROPERTIES ARE ELIGIBLE?

• Eligible properties include vacant or owner-occupied single-family residences, condominiums, tiny houses, duplexes, and manufactured homes on permanent foundations within the unincorporated areas of Humboldt County. Renter-occupied properties may be purchased only if the renter residing in the unit is buying the property.

• An inspector from our Planning and Building Department will determine if any health and safety-related problems exist on the property. Eligible homes must be safe, decent, and sanitary or must be improved by the seller before purchase.

• For all homes built before 1978, it will be assumed that lead-based paint was used, and the home will be inspected for chipping and peeling paint or other obvious lead-based hazards.

• The home must cost less than federal limits at the time of application, currently $409,000.

WHAT ARE THE DETAILS?

• First-Time Homebuyers are required to take a HUD-certified homebuyer education class and obtain a certificate. They must also participate in one-on-one financial counseling and create an action plan. 

• Applicants must obtain a first mortgage, and it must be a fixed-rate loan, for a term not less than 30 years with impound accounts for taxes and insurance.

• The County will make the second mortgage (gap loan), at a fixed rate of 3% simple interest. Payments are deferred for 30 years. This loan may not exceed the primary mortgage.

• The home must remain the homebuyer’s primary residence, with property taxes paid, and insurance must be maintained for the life of the loan.

Download this program outline in English/Spanish.

  1. First Time Home Buyer Information Sheet in English & Spanish (PDF)