First Lender Approval
Households are not required to have identified a first lender or a real estate agent to submit an FTHB Program application. However, the household will be required to secure a first loan preapproval from a BAAHA certified first lender to move forward with the FTHB Program after receiving a PEN.
FTHB’s Preliminary Program Approval process begins after the household has secured a loan preapproval from a BAAHA certified first mortgage lender. First lender preapproval and an FTHB Preliminary Program Approval must also be obtained prior to the household beginning their home search and purchase process.
Program Eligibility Notification (PEN)
BAAHA will review FTHB Program applications and will notify
households regarding their program eligibility status. Three
program eligibility outcomes are possible following the submission
of an FTHB Program application for review:
- Additional Information: Applicant must submit additional information for BAAHA to determine the household’s eligibility status.
- Program Eligible: The household is eligible to advance in the FTHB Program approval process. The issued Program Eligibility Notification (PEN) will provide additional information and instructions on the next steps required to secure Program Pre-Approval. The PEN will include BAAHA's preliminary estimate of the household’s maximum home purchase capacity under the FTHB Program.
- Program Non-Eligible: The household does not meet the eligibility requirements to secure FTHB Program funding. BAAHA will provide a detailed explanation as to why the household is not eligible.
BAAHA will take the following elements into consideration to issue an FTHB PEN:
✔ Household meets FTHB Program eligibility requirements.
✔ Household has the financial capacity to participate in an FTHB subsidy.
✔ The estimated maximum purchase price falls within Concord’s current real estate market price range to meet minimum purchase price guidelines to participate in the FTHB.
When issuing a PEN, BAAHA will provide a preliminary estimated maximum purchase price for the household based on information in their application. A final maximum purchase price is reviewed and provided when the household secures a Preliminary First Loan Approval from their first lender.
Households that receive an FTHB PEN are placed on a Program Eligible list. Program Eligible households may advance their efforts to secure and FTHB Preliminary Program Approval Notification.
Concord First Time Home Buyer Program
Application Submittal
An FTHB Program application must be submitted to BAAHA to secure a Program Eligibility Notification and move forward in the process to receive FTHB funding. Do not submit your application until you have thoroughly reviewed the FTHB Program eligibility requirements and other guidelines detailed in this website. Direct any questions or concerns you have regarding these requirements to info@myhomegateway.com.
PENs are underwritten and issued based on information provided in the FTHB application. False or inaccurate information provided by the applicant could disqualify a household from moving forward with the FTHB Program. To prevent program disqualification, applying households should ensure accurate and complete information is provided in their FTHB application.
Preliminary Program Approval (PPA)
After the applicant receives a first loan preapproval from a lender, BAAHA will issue the household a Preliminary Program Approval (PPA). The PPA will:
- Confirm the maximum purchase price established by the BAAHA certified first lender.
- Verify and communicate key FTHB Program information provided by the household and first lender.
- Provide guidelines and requirements for the property search in Concord.
- The PPA includes an acknowledgement that must be signed by the household. The acknowledgement affirms the household understands the terms and requirements to secure FTHB funding to purchase a home in Concord.
PPA notifications expire 90 days after issuance, after which households will be required to renew their PPA. This renewal will require the household to submit new first lender preapproval documents to BAAHA.
The PPA is not a final FTHB Program approval. The final FTHB Program approval process begins once a household enters into contract to purchase an FTHB Program eligible property.
BAAHA Certified Lender Requirements
BAAHA certified first mortgage lenders must meet the following requirements:
- The City’s FTHB loan must always be in second position behind the first mortgage. Additional subsidy loans delivered by the first lender must be in a subordinate priority position to the first loan and the City’s FTHB loan.
- The first lender must be able to provide their first loan in conjunction with the City’s FTHB Program and loan terms.
- There is a strong preference for BAAHA to certify first lenders with the capacity to deliver additional complementary approved grant and/or loan funding for low-income borrowers. Secondary funding sources must be provided at the time of purchase. These additional subsidy loans must have payments deferred for at least five years and hold a junior position to the City’s FTHB loan.
BAAHA will issue a list of BAAHA Certified Concord lenders to households that have obtained a PEN. Alternatively, non-certified first lenders selected by the household must submit a BAAHA Lender Certification Form to BAAHA. BAAHA will review this form to verify that the lender meets all required FTHB Program guidelines before approving them as a BAAHA Certified First Lender
The first lender approval process will:
- Confirm the household’s maximum purchase price to buy a home in Concord. The purchase price must conform with all FTHB Program financial guidelines.
- Establish the capacity and eligibility for the household to participate in other funding programs.
- When applicable, approve the FTHB household for additional loan and grant funding programs the first lender has access to.
- Enable BAAHA and the City to perform their underwriting process and issue a Preliminary Program Approval for the household to purchase a home and receive FTHB funding.
- A Final Program Approval is issued by the City and the first lender after the household has entered into a purchase contract and the property is approved to be financed.
A PEN is not a program approval. The PEN provides the household with the ability to proceed forward with securing FTHB Preliminary Program Approval.