Concord First Time Home Buyer Program
Purchase Representation
As of January 1, 2025, California law (AB 2992) requires homebuyers to be represented by a California licensed real estate agent. A real estate broker does not have to be identified for a household to submit an FTHB Program application. However, FTHB Program participants are responsible for providing BAAHA with the name and contact information when they identify an agent to represent them.
Real estate brokers assisting an FTHB Program participant are required to review an FTHB Program real estate agent manual. The manual outlines property purchase guidelines and steps the broker must adhere to when representing an FTHB Program purchase transaction.
Additionally, BAAHA has a strong preference that escrow services are provided by an escrow company that has experience with the FTHB Program.
After securing a PPA, the household can begin the search for an FTHB Program eligible property. Key considerations FTHB Program participants must take into account when searching for a home include:
- City of Concord Location: FTHB program participants must purchase a home within Concord’s city limits.
- Type of home: The home must be a single residential unit, which could be a detached single-family home, condominium, or townhome. No other property types are allowed into the FTHB Program.
- Good condition: The home must be in good move-in condition and not have any outstanding required structural or Section 1 repairs. Section 1 repairs include active termite infestation or other wood-destroying insects/organisms such as dry-rot fungus. This requirement is in place to help ensure FTHB Program participants are not burdened with significant financial challenges after purchasing the home.
Contractual Purchase Requirements
The following home purchase requirements must be upheld to secure final FTHB Program approval:
- Forty-five (45) day escrow period: The purchase offer cannot have less than a 45-day escrow period. 45 days are required to complete the FTHB Program approval process (including reviewing and approving all inspections and appraisal reports), draw FTHB Program-related documents, and route documents through City staff.
- Property inspection(s): The buyer and/or seller must provide a general property inspection and termite/pest inspection produced by independent licensed inspectors to BAAHA/City.
- Property appraisal: The City/BAAHA will require an independent property appraisal to demonstrate that the purchase price of the property is equal to or less than the contracted purchase price. First lenders traditionally provide property appraisals to BAAHA for review. Property appraisals are customarily ordered by the first lender and paid for by the buyer.
- Escrow requirements: Borrower cash-back or refunds exceeding $250 are prohibited during the close of escrow when utilizing public or private first lender subsidy funds for a first-time homebuyer purchase.
Property Search and Purchase Requirements
First Come, First Served
There is a limited amount of FTHB Program funding. Funding will be distributed to FTHB Program participants on a first come, first served basis. The City/BAAHA will issue Program Eligible Notifications until the FTHB Program runs out of funds.
Households who currently live and/or work in Concord will be provided with a preference to receive FTHB funding in case of a tiebreaker. A tiebreaker will only occur if:
- There are two applicants competing with a bid on the same home.
- There is only one FTHB funding allocation remaining.
Final First Lender and FTHB Program Approval
Final first lender and FTHB Program Approval are required to close the home purchase transaction. Final first lender and FTHB Program approval will be provided after:
- The FTHB Program participant has received preliminary preapproval from the first lender and the City of Concord/BAAHA.
- The FTHB Program participant has placed an offer on a property located in Concord. The contract must have at least a 45 day close for the FTHB Program to provide their final approval.
- The property meets all the structural condition requirements and is appraised at or higher than the purchase price.
- The first lender has provided a final first loan approval that meets all financing conditions.