Santa Ana Offering $40,000 in Down Payment Assistance for First-time Buyers

The city of Santa Ana, south of Los Angeles, is now offering interest-free down payment assistance loans to first-time homebuyers.

Under the program, first-time buyers may be eligible to borrow up to $40,000 with 0% interest rate. According to details from the city, the funds are being made available on a first-come, first-served basis.

According to the city, the purchase price cannot exceed $466,000 for an existing home or condo, and $560,000 for a new home or condo.

To be eligible for the program, borrowers must be pre-qualified for a first mortgage, and must be a first-time homebuyer. Buyers who have not owned a home in the last three years may also be eligible.

Borrowers must also be prepared to contribute a 3% down payment of their own funds, and must complete a homebuyer counseling program.

Borrowers’ household annual income must be at or below 80% of area median income, as determined by the Department of Housing and Urban Development.

Borrowers must have “acceptable credit history,” according to the city, and the home must be located in the city of Santa Ana.

The home must also be owner-occupied for the life of the loan, meaning investors are not eligible for the program.