The City of Santa Ana is offering a down payment assistance loan to first time homebuyers to help buy within the City.  Funds will be made available on a first-come, first-served basis.

A first time homebuyer may be eligible for up to $40,000 with a 0% interest rate.

Qualifying Requirements

• Must be pre-qualified for a first mortgage
• Must be a first time homebuyer
• Must have at least 3% of your own funds for downpayment.  Cannot be gift funds
• Must good credit history
• No co-signers allowed
• Must be fixed rate first mortgage - no adjustable rates allowed
• Must complete Homebuyer Counseling Program
• Home must be located in Santa Ana

Application and Approval Process

• Prospective homebuyer completes a HUD approved 8-hour homebuyer class.
• Homebuyer chooses a local lender and gets pre-qualified.
• Homebuyer provides a complete Down Payment Assistance Loan Applicant Packet to the City of Santa Ana Housing Division for review and pre-approval with all required documents and forms. All applications must contain the documents indicated in the attached Document Checklist. o Once pre-approved, homebuyers will have 60 days to find a qualified home within Santa Ana to purchase. Pre-approval does not guarantee City funds.
• Homebuyer shops for home based on Lender’s pre-qualification amount. o When presenting an offer, Homebuyer and Realtor provide Seller’s Statement for the Seller to sign.
• Within three (3) business days, Homebuyer must contact the City of Santa Ana to schedule an inspection by City Staff for lead-based paint hazards and building/health and safety code deficiencies once a purchase contract has been executed.
• If homebuyer is eligible and home passes inspection, City of Santa Ana reserves funds and notifies the Homebuyer and Realtor. o A minimum of two (2) weeks prior to close of escrow, the City of Santa Ana needs the lender’s packet for final loan approval.
• Realtor notifies the City of Santa Ana of scheduled closing date ten (10) business days prior to close of escrow date. Incomplete application packets will cause delays in the approval process. Please contact Santa Ana’s Housing and Neighborhood Development Department at (714) 667-2250 should you have questions or require additional information.

City of Santa Ana
Community Development Agency
Housing and Neighborhood Development Division
20 Civic Center Plaza, 6th Floor
Santa Ana, California 92702

Purchase Price Limits

• $466,000 for existing single family home or condominium
• $560,000 for new construction single family home or condominium

Income Limits

Important Links

• English Flyer
• Spanish Flyer
• Application

NOTE:  I noticed that there are conflicting maximum purchase price limits listed on the application and the flyer.  I suggest contacting the City of Santa Ana for clarification if you are close to exceeding the maximum limits.

If funds are no longer available, or you are unable to meet the qualifications for this assistance program, there are other options that may be available to you.

California home buyers should also explore Mortgage Credit Certificates, CRA Programs, Lender/Agent Credits or other creative down payment and closing cost assistance options.