Question 1

Can I use community mortgage programs if I owned a home before?

Accepted Answer

Most programs require first-time buyer status or no ownership within the past three years. Some exceptions exist for displaced homemakers or single parents.

Question 2

Do income limits apply to my entire household?

Accepted Answer

Yes, lenders count all household income against area median limits. Non-borrower income from adult children or other residents gets included in the calculation.

Question 3

What happens if I sell before the assistance is forgiven?

Accepted Answer

You repay a prorated portion of grants or forgivable loans. Programs typically forgive 20% per year over five years—sell in year three and repay 40%.

Question 4

Can I combine community programs with FHA or conventional loans?

Accepted Answer

Yes, many buyers layer CalHFA or county assistance with FHA base loans. Some programs work with conventional loans rated at 97% LTV.

Question 5

How does Foster City compare to nearby cities for program eligibility?

Accepted Answer

Income limits and assistance amounts are countywide, so eligibility stays consistent. Home prices vary more than program rules across San Mateo cities.

Question 6

Do community mortgages have higher interest rates than conventional loans?

Accepted Answer

Rates run 0.25-0.75% higher than conventional, but upfront grants often save more money. Compare total five-year costs, not just the rate.

Community Mortgages in Foster City: Flexible Programs for First-Time and Moderate-Income Buyers