The City of Redding Homebuyer program formerly known as the Down Payment Assistance Program (DAP) was created in 1998 to provide direct loan assistance to qualified Low, Median, and Moderate-Income households wishing to purchase a home within the Redding city limits. The Homebuyers Program provides a “silent” junior loan to bridge the gap between the buyers down payment, the first mortgage, and the purchase price of the home. Please be advised that the following change is effective June 14, 2010:
- The Maximum purchase price is $175,750.
The City of Redding has funds for the Homebuyer Program on a first-come, first serve basis. If you would like to apply, please fill out a profile form. This will place your name on the waiting list. Once you reach the top of the list, you will be screened to determine if you meet the programs requirements and then you will be mailed an application to start the eligibility process.
Homebuyer Loan Amounts:
Low-Income applicants – The maximum loan amount shall not exceed $60,000
Median-Income applicants – The maximum loan amount shall not exceed $25,000
Moderate-Income applicants – The maximum loan amount shall not exceed $10,000
The buyer must contribute a 3% down payment toward the purchase (1.5% of the buyer’s down payment and the closing costs may be gifted from any source).
Homebuyer Incentive Program (H.I.P.):
This program encourages buyers utilizing the Homebuyers Program loan to purchase bank-owned properties. The H.I.P. provides a $2,500 credit voucher to the buyer at the close of escrow to be used for certain home improvement costs related to the home.
Occupancy of the Home:
The home must be either owner-occupied or vacant for at least 90 days before making an offer on the home.
The Homebuyers Program is administered by the staff at the City of Redding Housing Division. For more information on this program or to get a list of homes that qualify for the DAP program contact us below.
You may also wish to download the City of Redding Homebuyer Application