Home Buyer Assistance Programs

The City of Watsonville Housing Division and Redevelopment Agency currently offer loan programs to assist prospective first time homebuyers.  Information regarding First Time Home Buyer (FTH) Loans.

In addition, several other public agencies also offer assistance to homebuyers. In some cases, eligible buyers can combine one or more of the following programs with assistance from the City or RDA.

Housing Authority of the County of Santa Cruz

The Housing Authority offers several programs to assist homebuyers throughout the entire County of Santa Cruz. Several of these programs are explained below. To learn more about any of the Housing Authority’s programs, please visit the Housing Authority’s website at: www.hacosantacruz.org

Mortgage Credit Certificates (MCC)

Local home buyers can apply for an MCC from the Housing Authority to help them buy a home. MCC’s are Federal income tax credits that reduce your tax bill. The credit is equal to 20% of the mortgage interest that you pay on your first mortgage. This may allow you to qualify for a larger first mortgage.

Section 8 Homeownership Program

Renters who have received Section 8 rental assistance for at least one year may also be eligible for special assistance to buy a home. to have their monthly voucher applied to a mortgage payment rather than rent.

California Housing Finance Agency (CalHFA)

CalHFA is a state agency that provides financing to assist homebuyers statewide. Several of their programs are described below. Please see www.calhfa.ca.gov. for the latest information regarding their programs.

School Facility Fee Down Payment Assistance Program (SSF)

First time homebuyers who purchase a newly constructed home may apply for grants of $4,000 to $5,000 from CalHFA. These grants were approved as part of Proposition 46, which voters approved in November 2002.

California Homebuyer’s Downpayment Assistance Program (CHDAP)

CalHFA also offers a small loan for eligible first time home buyers. The loan is for 3% of the home purchase price. It charges a 3% simple interest rate and no monthly payments are required for up to 30 years.