Question 1

Do I need to be a first-time buyer for a community mortgage in Atascadero?

Accepted Answer

First-time buyers get priority but you qualify if you haven't owned a home in three years. Some programs accept repeat buyers with no waiting period if income falls within limits.

Question 2

What income sources count toward qualification?

Accepted Answer

W-2 wages, self-employment, rental income, and even boarder rent count. Community mortgages accept income from household members who aren't on the loan. That flexibility helps multi-generational buyers.

Question 3

Can I buy a fixer-upper with a community mortgage?

Accepted Answer

The property must be move-in ready. Major repairs like foundation work or roof replacement disqualify it. Minor cosmetic issues are fine as long as the appraiser doesn't flag safety concerns.

Question 4

How do Atascadero income limits work for these programs?

Accepted Answer

Limits tie to San Luis Obispo County area median income. As of February 2026, a family of four typically qualifies under 80% of AMI. Those thresholds adjust annually based on HUD data.

Question 5

What's the minimum down payment I actually need in cash?

Accepted Answer

Three percent is standard minimum. Stack that with down payment assistance and you might only need funds for inspections and appraisal upfront. Seller concessions can cover remaining closing costs.

Community Mortgages in Atascadero: Access to Homeownership Made Real