Households participating in The FTHB and/or BMR Program are required to meet Program eligibility requirements. The majority of City Program eligibility requirements apply for both the FTHB and BMR Programs.
Concord First Time Home Buyer Program
Homebuyer Education
Prior to closing an FTHB transaction, all adult non-dependent household members must complete and secure a certificate of completion for a HUD Approved Homebuyer Education course. Households may choose to work with any HUD approved homebuyer education provider. A list of HUD approved educators and counselors may be obtained at HUD’s approved homebuyer education provider’s webpage.
BAAHA’s preferred education provider is A-1 Community Housing Services (A-1 CHS). BAAHA and A-1 CHS coordinate opportunities for households to attend a free HUD Approved Homebuyer Education course, which also includes free one-on-one counseling.
BAAHA highly recommends that FTHB Program applicants immediately secure a HUD approved homebuyer education certificate. Homebuyer education and counseling provide a significant advantage in navigating and successfully completing the FTHB Program approval and purchase process.
For self-employed individuals, net income is applied as the household’s gross earnings; and is established by reviewing the current profit and loss statement, business bank accounts, and prior years’ tax returns.
Combined gross income of all non-dependent adults in the household cannot exceed 150% of the area median income for Contra Costa County. Maximum FTHB Program income allowances based on household size are depicted in the table below. Please note that other homebuyer assistance programs, such as the WISH program, may have lower-income eligibility thresholds than the City of Concord FTHB Program.
Household Composition and Ownership Title
Qualifying household size influences income requirements and allowances. Applicants must identify all household members at the time an FTHB Program application is submitted, including any minors.
The FTHB Program, requires all non-dependent adults living in the home to be listed on the FTHB application and on property title. Adults living in the home must be listed regardless of whether they are on the mortgage.
Qualifying dependents must be designated on 2024 and/or 2025 federal tax returns. To be claimed as a dependent an adult child must either be permanently or totally disabled, or under the age of 24 and a full-time student. Full-time students must be carrying a 12-unit class load and live at the residence for at least six months each year. School transcripts will be required for eligible adult students that are claimed as dependents. A spouse cannot be claimed as a dependent on the application, even if the spouse does not earn any income.
Household Income and Assets
Incomes for all adult non-dependent household members that will be residing in the home must be listed in the FTHB Program application. Household incomes are based on gross earnings from all sources of revenue.
Gross household income equals total income, from all earnings sources and categories, before deductions from pay checks (such as taxes, retirement, and medical insurance). Gross wage earner income must include all bonuses and overtime earnings.
Imputed Income - To further determine Program Income eligibility the FTHB Program imputes and combines potential income earnings from a household’s assets. California Code Regulations Title 25. § 6914 establishes the parameters to calculate imputed income. For program qualification, non-exempt assets exceeding $5,000 are applied a 10% imputed interest rate. Exempt assets include personal household belongings and Federally registered retirement accounts. For example, if the value of non-exempt financial assets maintained by the household is $25,000, then 10% of $20,000 ($25,000 minus $5,000) will be added towards calculating income for Program Eligibility. In this example, a $2,000 addition (10% of $20,000) is made to determine the household’s gross income for Program Income Eligibility.
Maximum Asset Balance - A participating household’s non-exempt total asset balance may not exceed 50% of the purchase price of the property they are purchasing.
Housing Ratio Requirement - Participating households may not have housing ratios that are less than 28%. Housing ratios are established by dividing the combined monthly costs of homeownership (mortgage, taxes/assessments, insurance, and homeowner’s association fees) by the household’s gross pre-tax household income. The housing ratio is calculated and provided in your first lenders first loan approval documents.
| Household Size | 1 | 2 | 3 | 4 | 5 | 6 |
| Maximum Income Allowance | $167,775 | $191,775 | $215,700 | $239,700 | $258,900 | $278,025 |
First Time Homebuyer Status
All adult non-dependent members in the household may not have owned or been on title for any real property holdings over the past three (3) years prior to submitting the FTHB Program application.
Eligibility Requirements
Financial Capacity Requirements
Key financial capacity requirements to participate in the FTHB Program include:
- Minimum credit score: All adult non-dependent household members required to be on property title must have a FICO score that is greater than 640. BAAHA advises households with non-dependent adults with a FICO score of 640 or lower to seek credit and budget counseling from a HUD-approved homebuyer educator.
- Adequate funds for a down payment: Participants in the FTHB Program must contribute a minimum 3% down payment toward the home’s purchase price. Funds for down payment and closing costs must come from a bank or other approved institutional accounts. Documentation (such as bank statements) covering a three-month period is necessary to confirm that assets are held in an authorized institution. Funds cannot come from cash in hand.
- Adequate earnings to afford and maintain a home: FTHB Program participants cannot spend more than 45% of their pre-tax income on the sum of their housing costs and monthly debt payments. The percentage relationship between housing costs, personal debt, and income is referred to as a debt ratio. The debt ratio equals total monthly housing costs plus monthly personal debt costs divided by the monthly gross household pre-tax income. Housing costs include payments for the mortgage, taxes, insurance, and homeowner’s association fees (if applicable).
- Stable earnings: applicants must demonstrate that they have maintained stable earnings from the same employer, job type, and/or industry for at least the past twelve months. Self-employed household members should have operated their business for at least two years.
Financial and Purchase Capacity
Prospective homebuyers must satisfy income, credit, and debt-ratio requirements to qualify for the FTHB Program. FTHB Program applicants are screened to determine if they meet these qualifications. The FTHB Preliminary Eligibility Notification (PEN) will notify households whether they are eligible for the FTHB program and provide an estimate of the maximum purchase price the household can afford.