- The City’s subsidy must always be in second position behind the 1st mortgage. All additional subsidy loans delivered by the 1st lender must be in a subordinate priority position to the 1st loan and the City’s AHOP subsidy loan.
- The 1st lender must be able to provide their first loan in conjunction with the City’s AHOP Program and loan subsidy terms.
Guidelines & Requirements
The following general guidelines apply to all funding sources provided and applied through AHOP.
First Time Homebuyer
All members in the household may not have owned
or been on title for any real property holdings over
the past three years prior to submitting an AHOP application.
Maximum Household Income
Income applied to determine a household’s gross combined maximum income includes:
- Income from all non-dependent household members who will be living in the home the household will be purchasing
- Gross income equals the household member’s total income from all earnings sources, before any deductions from pay checks (such as taxes, retirement, and medical insurance)
- Gross income must include all bonuses and overtime earnings
- For self-employed individuals, net income as depicted in prior years’ tax returns is applied as a representation of the household member’s gross income.
AHOP provides access to different subsidies and resources for low income and moderate income households.
Low Income Households are able to access $60,000 of subsidy from the City of Antioch; and up to an additional $59,000 of subsidies from partnering subsidies.
Moderate Income Households with incomes that are above the low income threshold but less than the maximum moderate income threshold only have access to the $60,000 subsidy
To participate in the City’s AHOP down payment assistance subsidy, the combined gross income from all household members may not exceed:
| Household Size | Low Income Maximum Limit | Moderate Income Maximum Limit |
|---|---|---|
| 1 | $78,550 | $124,250 |
| 2 | $89,750 | $142,000 |
| 3 | $100,950 | $159,750 |
| 4 | $112,150 | $177,500 |
| 5 | $121,150 | $191,700 |
| 6 | $130,100 | $205,900 |
| 7 | $139,100 | $220,100 |
| 8 | $148,050 | $234,300 |
Financial and Purchase Capacity
AHOP participants must have the financial capacity to purchase a home in Antioch. Lack of financial capacity is normally attributed to a combination of the following items: inferior credit quality/rating, too much debt, lack of the amount and/or stability of earnings, lack of savings.
- Minimum FICO score of 640: All adult household members who will be on the property title must have a FICO score that is greater than 640. A household with a member(s) that has less than a 640 FICO score will not be allowed to participate in any form of funding made available through AHOP. If a household member has less than a 640 FICO, it is recommended that they contact Antioch’s contracted homebuyer education and counseling Agency, A-1 Community Housing Services (https://www.a1chs.org/). Go to A-1 Community Services website for more information on the homebuyer education and counseling resources they offer.
- Financial Capacity to Purchase an Antioch Home: Households must have the financial wherewithal to purchase and maintain home ownership in Antioch. This includes:
- Having enough funds for a down payment – Low Income AHOP participants will be required to have at least $7,500 to apply towards a down payment and closing cost. Moderate Income AHOP participants will be required to place 3% of the purchase price towards their down payment. Additional down payment may be required for higher priced homes. Funds for down payment and closing costs must come from a financial institution. Funds cannot come from cash in hand. Funds may also come from a first-line family relative. Gift funds must be seasoned and come from a financial institution the gift provider banks with (cannot be cash).
- Having enough earnings to afford and maintain a home – Households participating in AHOP will not be allowed to spend more than 45% of their gross household’s earnings towards paying for the combination of all housing costs plus their minimum monthly personal debt payments. The relationship between housing costs, personal debt, and income is commonly referred to as a debt ratio. Housing costs include payments for the mortgage, taxes, insurance, and home owner’s association fees (if and when applicable). Housing costs will vary based on the purchase price, amount of downpayment and subsidy provided, and the interest rate charged for the mortgage. Interest rates may vary based on the credit quality of the household.
BAAHA has provided an illustration of the maximum projected purchase price households can purchase under various ranges of annual gross household incomes. This illustration has been provided to help prospective AHOP applicants better determine if they should apply for the AHOP. The actual costs households incur when purchasing their home will be different from the numbers provided in this illustration. Keep in mind that the illustration provides households the approximate projected maximum purchase price capacity under specific income levels. The level of purchase power will vary based on the amount of down payment provided and the interest rate available at the time of the purchase. The illustration applies a 3% down payment to derive the estimated purchase prices. The numbers represented in the illustration are based on a 3% down payment and the household maintaining zero dollars in personal debt. A dollar for dollar upward adjustment may be made to the represented purchase prices for additional savings contributed towards the 3% down payment applied in the calculations. A household should deduct approximately $10,000 from the purchase price for every one hundred dollars ($100) required by the household to be paid towards monthly personal debt. Accordingly, if a household has a $300 car payment, they should subtract $30,000 from the purchase price represented in the table on the left.
BAAHA recommends households only consider applying for AHOP if their gross household income allows them to purchase a desired home that is within their purchase price capacity. A synopsis of the past twelve months of Antioch sales (including sales prices) is provided in the Application and Approval Steps Webpage under the Program Prequalification Notification - Home Prices section/table.
The table (provided on the left) is only to be used as an illustration to approximate purchase capacity at various gross household incomes. Applicants cannot use the illustration as a source to determine their actual purchase capacity – including their maximum purchase price and housing costs. There are too many factors that need to be taken into account to provide an exact calculation of a household’s purchase capacity and costs. - Having stable earnings – Household members applying for AHOP must demonstrate that they have maintained stable earnings from the same employer, job type, and/or industry for at least the past two years. Self-employed household members must have operated their business for at least two years.
- Having enough funds for a down payment – Low Income AHOP participants will be required to have at least $7,500 to apply towards a down payment and closing cost. Moderate Income AHOP participants will be required to place 3% of the purchase price towards their down payment. Additional down payment may be required for higher priced homes. Funds for down payment and closing costs must come from a financial institution. Funds cannot come from cash in hand. Funds may also come from a first-line family relative. Gift funds must be seasoned and come from a financial institution the gift provider banks with (cannot be cash).
Homebuyer Education and Counseling
Prior to closing an AHOP purchase transaction, all adult non-dependent household members must secure and deliver a copy of a certificate of completion to BAAHA (and all other subsidy providing partners). This certificate represents that they have attended and completed a HUD approved homebuyer education course. The City of Antioch contracts directly with A-1 Community Housing Services to provide free education and one-on-one counseling; however, a household may choose a HUD approved educator and counselor of their choice. A list of HUD approved educators and counselors (including a direct link to HUD’s website) may be obtained at BAAHA’s website by clicking here.
A certificate of completion is not required to submit an AHOP Program Application; however, BAAHA and the City highly encourage household members attend an approved homebuyer education course at your earliest convenience. Securing homebuyer education and counseling will help household members further understand and navigate through the AHOP approval and home purchase process.
Program Application and Approval
Households wishing to access AHOP City funding must submit a Program Application and secure Program Approval from the City. BAAHA is contracted by the City to: 1) process and underwrite the application to determine Program Eligibility, and 2) follow through with all additional steps to finalize AHOP approval for applicants. Below is a synopsis of steps households wishing to obtain an AHOP Program approval must take:
- Secure a Certificate of Completion for attending and completing a HUD approved homebuyer education course. An AHOP application cannot be submitted without this Certificate
- Submit an AHOP Application for program prequalification
- Secure Program Prequalification Notification
- Secure preliminary 1st Lender Approval
- Obtain an AHOP funding reservation and commence searching for a program eligible Antioch property
- Obtain final 1st Loan and Program Approval from the City
Additional important information on the above noted steps is provided on the program Application and Approval page.
BAAHA and City Certified Lender
In order to receive up to $60,000 in City subsidy funding, an AHOP participant must secure a 1st mortgage loan approval form an AHOP certified 1st mortgage Lender. A City certified 1st mortgage lender must meet the following requirements:
- For Low Income Households that are receiving additional partner AHOP funding
- For Moderate Income Households that are only receiving AHOP funding
BAAHA maintains a list of Certified AHOP lenders that meet the above criteria. BAAHA provides this list of lenders to AHOP applicants that have received a Prequalification Program Notification (AHOP PPN). An AHOP applicant may choose to use a lender they are currently working with; however, BAAHA will require to review and determine if the 1st lender can participate as an AHOP certified lender. To be certified, the lender will need to meet the above stated conditions.
Review the Subsidy Funding Sources for more information on additional subsidy sources that are available from 1st Lenders.
Condition of Home
Properties purchase with AHOP Funding must meet minimum property condition thresholds to be issued a final Program Approval, and to fund an AHOP City subsidy applied towards the home purchase. Minimum property condition requirements include:
- Home must be compliant with all state and local health and safety codes
- Home must not have any outstanding Section 1 items in need of repair. Section 1 items are established through a Termite/Pest report conducted by a licensed inspector. The report may not be older than 60 days from the date the property is identified by the AHOP participant. The Termite/Pest report may be ordered and supplied by either the Seller or AHOP participant.
- Home must be in good condition. BAAHA and the City will require that AHOP applicants secure a Home Inspection report from a licensed Home Inspector prior to purchasing the property. This inspection could be ordered by the AHOP buyer or the seller.
- Home must meet all 1st lender property condition guidelines
- Home must be vacant or occupied by its residing owner at the time of purchase. A tenant/renter living in the home may not be evicted prior to an AHOP participant taking possession of the home.
Additional home purchase requirements and parameters are provided in the Property Search and Purchase Requirements section.
Gross Annual Earnings | Projected Maximum Home Price | Projected Monthly Payments |
|---|---|---|
| $40,000 | $250,500 | $1,400 |
| $50,000 | $305,300 | $1,800 |
| $60,000 | $421,700 | $2,100 |
| $70,000 | $475,800 | $2,500 |
| $80,000 | $529,900 | $2,800 |
| $90,000 | $583,900 | $3,200 |
| $100,000 | $638,000 | $3,500 |
| $110,000 | $692,300 | $3,900 |
| $120,000 | $675,000 | $4,200 |
| $130,000 | $723,900 | $4,600 |
| $140,000 | $775,500 | $5,000 |
| $150,000 | $825,700 | $5,300 |
| $160,000 | $876,000 | $5,700 |
| $170,000 | $926,200 | $6,000 |
Antioch Home Ownership Program (AHOP)
- An AHOP BAAHA certified lender must be able to deliver an additional approved source of subsidy funding that can be leveraged with AHOP City funds. These funding sources must either be grants or silent second loans that have at least a five-year term and otherwise fit within the City’s required parameters.
- The City’s subsidy must always be in second position behind the 1st mortgage. All additional subsidy loans delivered by the 1st lender must be in a subordinate priority position to the 1st loan and the City’s AHOP subsidy loan.
- The 1st lender must be able to provide their first loan in conjunction with the City’s AHOP Program and loan subsidy terms.