SANTA CRUZ (August 7, 2010) - Homeownership seems simply out of reach for many lower income, first time homebuyers on the Central Coast. For many, despite the drop in home prices and historically low interest rates, the thought of actually being able to buy or qualify for a home loan seems unattainable. There is hope. There are programs available to help these people make this unattainable goal a reality.

The Santa Cruz Association of REALTORS® Housing Foundation (SCAORHF) is a local, nonprofit organization focused on bridging the gap to home ownership for lower income individuals and families in Santa Cruz County. They have created an innovative funding program for lower income homebuyers. The Housing Foundation created the Closing Cost Assistance Grant Program which is designed to provide grants to qualified homebuyers. This grant is to be used as a credit towards closing costs for the purchase of residential property being purchased by first time, lower income, homebuyers. Currently, qualified buyers can obtain up to $3,000 in closing cost assistance for single family residences. This includes condominiums and town homes as well as single family homes. For buyers of mobile or manufactured homes, $1,000 in closing cost assistance is currently available.

Some people may ask how a small grant could possibly help a homebuyer when the median price of a condo or single family home is so high? There are other state, county and city housing assistance programs available in the county of Santa Cruz that may also provide down payment assistance. The grant used in conjunction with one of these valuable programs can make the difference in qualifying for a home or not.

These programs do have certain qualification limitations. For one, there are income restrictions tiered to the number of people in a household. In addition, it is required that an applicant be a first time home buyer. The definition of a first time homebuyer is a buyer who has not owned a primary residence in the past 3 years. Interestingly, owning a rental home does not disqualify one as a first time homebuyer. This program requires the applicant to live or work in the county of Santa Cruz and, of course, the property being purchased must be within the county of Santa Cruz to be eligible.

The Housing Foundation sponsors two annual fund raising efforts to raise funds to continue this great program. A Sip of Summer is being held on Tuesday August 17th from 5:00 - 7:00 pm at the Bargetto Winery in Soquel. A Taste of Santa Cruz is being held Thursday, November 4th from 5:30 - 9:00 pm at the Cocoanut Grove in Santa Cruz.

The Housing Foundation also accepts tax deductible donations to help fund this program. More information can be found at www.scaorhf.org on how a donation can be made. There, you will also find the Closing Cost Grant application and eligibility requirements. Be sure to talk to your local mortgage professional to see if these programs can benefit you or a family member.

This column is written every Saturday by Peter Boutell, Certified Mortgage Planner and a principal at Santa Cruz Home Finance. You may reach him at (831) 425-1250 of email him at Peter@SantaCruzHomeFinance.com.