The City of Watsonville Housing Division currently offers loan programs to assist prospective first time homebuyers.
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.
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.
Mortgage Credit Certificates (MCC)
Local home buyers can apply for an MCC from the California Housing Finance 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 visit the CalHFA website 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 11-2002.
California Homebuyer's Down Payment 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.