Question 1

Do I qualify if I owned a home 10 years ago?

Accepted Answer

Most lenders allow prior ownership if you haven't owned in the past three years. First-time buyer restrictions vary by program, so we check eligibility across multiple lenders.

Question 2

Can I use gift funds for the down payment?

Accepted Answer

Yes, most community mortgage programs accept gift funds from family members. You'll need a gift letter and proof the donor transferred the money into your account.

Question 3

How do income limits work for couples?

Accepted Answer

Lenders combine both incomes and compare the total to area median income thresholds. San Mateo County limits adjust based on household size, so a couple qualifies at different caps than a family of four.

Question 4

What happens if I earn too much next year?

Accepted Answer

Income limits apply only at origination. Once you close, future income increases don't affect the loan. You won't need to refinance or pay higher rates if your salary grows.

Question 5

Are community mortgages assumable?

Accepted Answer

No, these loans aren't assumable like FHA or VA mortgages. Future buyers must qualify under the program terms in effect at their purchase date.

Question 6

Can I refinance into a conventional loan later?

Accepted Answer

Yes, refinancing into conventional is common once you hit 20% equity. Many borrowers start with community programs then refinance to drop MI or access better rates after building equity.

Community Mortgages in South San Francisco: Flexible Paths to Homeownership