What is the process to apply for the RHP Program?
1. If you are a first time homebuyer whose income is within the Program limits, the first step is to contact a participating lender for eligibility screening. The lender will take a loan application at this time and pre-qualify you for a first loan and the RHP Program. The lender will determine the maximum home price that you can afford, and will also determine whether you are eligible for assistance under the County of Riverside RHP Program.
2. After the lender has determined if you are eligible for the program, you will need to attend an 8 hour homebuyer education class for the RHP Program. The lender will provide the names and phone numbers of approved homebuyer education providers, and you will need to call one of the providers to schedule a class. There may be a minimal charge to attend this class. The homebuyer education must be provided by a HUD approved counseling agency and online homebuyer education is not permitted. Homebuyer education certifications are valid for one year.
3. Once you are pre-qualified for the program and have a maximum home price, you may locate a home to purchase. If you are interested in an existing home, it is recommended that you contact a Realtor to assist you in locating a home to purchase. Note: Make sure that you look for homes in participating locations for this program. Eligible locations include unincorporated areas of Riverside County as well as County redevelopment areas.
4. Once you have located a home, you will need to make a purchase offer and start escrow. Your real estate representative or new home salesperson and your lender can assist in this process. You must provide a Homeownership Notice to the sellers (RHP 3 Form) as an addendum to the purchase contract-your lender can provide you with a copy of this Notice. Once your purchase offer is accepted and escrow begins, your lender will assist you in completing the application materials for the RHP Program.
5. During escrow your lender will process your loan application for the first mortgage and RHP Second mortgage. You will be required to sign forms authorizing the lender to submit a RHP application on your behalf and disclosing your current income from all sources. Prior to the close of escrow you will sign loan documents and both the first and second mortgages will be funded.
6. When escrow closes, you will become a homeowner and will be responsible for maintaining the property in sound condition. You will begin making monthly payments on your first mortgage. The RHP Second Mortgage will not require payments unless you sell your property or obtain a cash out refinance on the first mortgage. After the 45 year affordability period, the RHP assistance is converted to a grant with no repayment of funds. If you sell your home during the 45 year affordability period, it must be offered to or otherwise be made available for purchase by qualified low or moderate income households.
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