Redevelopment Agency Foreclosed Home Assistance Program
What is the Redevelopment Agency Foreclosed Home Assistance Program?
The Redevelopment Agency Foreclosed Home Assistance Program (RAFHAP) assists low and moderate income first-time homebuyers to purchase an eligible home in certain areas of Riverside County. Assistance may be used for down payment assistance and is provided as a silent second mortgage secured by the buyer's home which bears 0% interest. A portion of the assistance may also be used to pay for closing costs for the homebuyer.
How Much Assistance is Available?
RAFHAP loan assistance is available to a maximum of 30% of the purchase price of the home not to exceed $75,000. RAFHAP funds can be used as a silent second loan that will be used as gap financing to 1) reduce the amount of first mortgage required in qualifying for the home and 2) can also be used to pay for up to 3% of the sales price to pay for closing costs on behalf of the homebuyer.
Who is Eligible?
Eligible participants must:
- Be a first time homebuyer (cannot have owned residentially improved real estate in the past 3 years);
- Purchase an eligible home;
- Have sufficient income and credit worthiness to qualify for a 30-year, fixed rate first mortgage from a first mortgage lender;
- Be income qualified; and
- Occupy the home they are purchasing as their primary residence for 45 years.
How do I apply?
Prospective buyers must apply by finding an eligible property in the search below and contacting the appropriate contact person for the eligible property.
General Requirements
- Household Income cannot exceed 120% of area median income
- Applicant(s) must not have owned nor filed any mortgage interest or real estate tax write offs in the past 3 years for residentially improved real estate
- Applicant(s) must be either a US Citizen or a Qualified Alien
- First Mortgage payment (principal, interest, taxes, insurance(s), special assessments, utility allowance) is limited to 25%-35% of monthly household income
- Assistance is limited to a minimum of $1,500 and maximum of the lesser of 30% of sales price or $75,000
- Household size must meet occupancy standard