HAC First Time Home Buyer Loan

The First Time Home Buyer Program provides up to $100,000 in fully amortized secondary mortgage financing at below‑market interest rates to help eligible SEIU represented County employees purchase a home.

Loan Terms

• 30-year term with fully amortized payments
• Balance due at maturity or upon refinance without approved subordination, sale, title transfer, or conversion to rental use
• Fixed interest rate of 3% per annum
• Maximum loan amount of $100,000 subject to availability of funds

Employee Eligibility Requirements

• Must hold a position represented by SEIU Local 1021
• Must be a full-time, part-time, or extra-help County employee
• Must have contributed 2,088 hours to the Housing Fund
• Must not have owned a principal residence within the past three years or currently hold any real property interest
  • Exception: A single parent with custody of one or more minors, as established by a legal divorce or separation decree, is not required to be a first-time homebuyer.
• Must contribute at least 5% of the home’s total purchase price in cash from personal resources, applied toward the down payment and/or closing costs
• Must not possess more than $50,000 in personal property
  • This includes items such as motor homes and boats, but excludes vehicles used for transportation, household furnishings, life insurance, deferred compensation, IRAs, and funds designated for the down payment or closing costs.

Property Requirements

• Must be located in Sonoma County
• Eligible property types include single-family residences, condominiums, PUDs, and manufactured homes on a permanent foundation or on owned land
• The maximum primary mortgage amount follows the annually updated single-family loan limit set by FNMA/FHLMC. Contact the CDC for current limits.
• Loans may be used to purchase legally sited mobile homes. These loans are 6% of the sales price, up to a maximum of $10,000, at 3% interest, amortized over 15 years.

It is strongly recommended that applicants familiarize themselves with the home‑buying process. The following websites offer free educational resources:

• https://www.hud.gov/helping-americans#Homeownership
• www.fanniemae.com/education
• https://www.consumerfinance.gov/consumer-tools/mortgages/

Purchase Process

1. The applicant secures a primary mortgage pre‑qualification and provides the lender with information about the County of Sonoma / SEIU Housing Assistance Committee (HAC) First-Time Homebuyer (FTHB) Program.
2. The applicant searches for a home within Sonoma County.
3. After the applicant’s offer is accepted, the buyer and seller execute a purchase agreement and open escrow with the buyer’s chosen title company.
4. The applicant obtains a mortgage loan commitment from the primary lender and submits it to the Sonoma County Community Development Commission (CDC), including purchase price, loan amount, interest rate, and terms. The primary loan amount must not exceed the current FNMA/FHLMC single‑family loan limit. Contact CDC for the current limit.
5. The applicant completes the HAC FTHB loan application and submits it to CDC along with the non‑refundable $25 fee and the lender’s pre‑qualification letter.
6. The primary lender provides CDC with the full loan file, including all required verifications, reports, appraisal, and supporting documentation. CDC uses this information to verify eligibility and underwrite the HAC FTHB loan. Additional reports such as pest clearance, roof inspection, or well/septic reports may be required based on appraisal or lender conditions.
7. CDC issues loan approval or denial to the applicant.
8. The primary lender, real estate agent, or applicant notifies CDC of the anticipated closing date. Please allow 10–15 business days for CDC to process the HAC FTHB application after receiving the complete loan file.
9. CDC prepares the HAC FTHB loan documents, sends them to the title company, and arranges for loan funds to be wired (3–5 business days).
10. The applicant signs all primary and secondary loan documents at the title company, and the title company records the documents.
11. The applicant takes title and possession of the home.

Application Materials

If you have any questions while reviewing these materials, please contact the SEIU Housing Assistance message line at (707) 565‑7549.

Please note that there is a non‑refundable $25.00 application fee for this loan program. Once you have an accepted offer on the home you intend to purchase, submit your completed application and check to the Sonoma County Community Development Commission (CDC). You may do this through the county courier system (addressed to SEIU Housing at the CDC) or in person at:

141 Stony Circle, Suite 210

Santa Rosa, CA 95401

REQUIRED FORMS:

• FTHB Application Form (PDF: 386 kB)
• Certificate of Source of Funds Form (PDF: 12 kB)
• Authorization to Release Information Form (PDF: 148 KB)

Please note: No funding commitment can be made until your loan receives written approval.