SELF HELP PROGRAM AND BUYER SELECTION PROCESS
Buyer/Product Type
Single Family Homes
60-80% AMI
Number of units
25
Bedrooms
Square Feet
3-4
1,200-1,400 (APPX)
Sales price
$255,000-$275,000
Our mutual self-help housing program offers low income families the opportunity to use their “sweat equity” as
the down payment on a new home that would otherwise be out of their reach.
Families work side by side devoting time in finishing their new homes. Throughout the process, South County
Housing staff provides onsite training, supervision, as well as homebuyer education and loan application
assistance, but the families do much of the work. It takes a great deal of time, patience, commitment, physical
effort, teamwork and leadership which are essential building blocks of “building community”.
Hillview is located off Buena Vista Road in Hollister and will consist of 25 3 & 4 bedroom single story homes.
All will have small backyards and 2 car garages. Funding will be provided in part by the USDA and the City of
Hollister Redevelopment Agency (RDA).
In an effort to keep monthly financial obligations to a minimum, SCH has taken extra care to direct 23 of the
homes to benefit from Passive Solar; meaning that the design will allow the sun to warm the home in the winter
while blocking the sun in the summer. With a park directly across the street there was no need to create
common open space. There will be no homeowner association fees due, which means families can expect lower
monthly costs.
1.
3.
Qualify
Basic Requirements

First Time Homebuyer

Minimum Household Income: $35,000 for lowest priced home

Credit Score at least 640

US resident or US Citizen
Fill out the Pre-Application
For Questions, please contact SCH, Loan Packaging Department @ 408-778-0276
o Only original application forms and copies of the requested documentation will be accepted.
o Please include a Pre-application fee of $15.00 in cash (exact change please) or money order
made to SCH ONLY.
o To allow SCH to obtain your credit report, please sign the Pre-application and include a money
order or exact cash of $34 per married couple or $25 for individuals.
o It is imperative that all information filled out on your application be timely and accurate.
Eligibility is determined based on the information provided to SCH. Also, by signing the preapplication you are agreeing for SCH to have your credit report run.
Persons submitting applications containing misrepresentations or falsifications will be subject to
immediate disqualification from this and all future housing programs of South County Housing.
4.
Random Drawing and order selection
Due to the interest expressed in the Hillview community, SCH will be doing a random drawing for the
first round of applicants. All families who submit by the deadline (February 25, 2009 5:00pm) will be
entered into a random drawing and issued a random drawing number. The random drawing number will
establish the order in which applicants have the opportunity to apply for a mortgage if they meet the
basic requirements. It is also important to note that all pre-approved buyers from the initial random
drawing in 2002 have the first priority over all other applicants and will be processed first based on their
random drawing number issued in 2002 and will not be required to be part of this random drawing. Once
the Hillview random drawing is completed, should there still be interested parties, their applications will
be accepted on a first come first serve basis, assigned a number and added to the end of the list.
5.
After the random drawing
The pre-applications will be forwarded to the lender to check the credit. Only candidates who have a
credit score of at least 640 and earn at least $35,000 and submit a complete pre-application will continue
with the formal loan application process.
6.
Loan application process
Once SCH had determined credit and debt worthiness and preliminary income eligibility, all applicants
will be required to complete and submit a Residential Loan application to USDA, the first mortgage
lender. The following documents will be required:
Complete 1003 Loan application, signed and dated
Authorization to release information and verifications (as required by USDA)
Pay stubs for the previous 2 months for all borrowers in the household
Income and expenses
Legal Residency Status (As required by USDA)
3 years of Federal taxes
3 years of W’2s
Copies of bank statements – ALL pages
The lender and SCH will review all submitted information to determine if you are eligible for the first
and secondary loan programs. You will also be required to submit additional documents including
updated pay stubs, verifications of employment, and asset documents throughout the construction time
period. You must also meet all deadlines imposed by the USDA, the lender and SCH.
Once SCH has a complete Loan application packet for the applicant and has issued a pre-approval, the
loan application packet will be forwarded to USDA for final review.
7.
USDA Loan Orientation and Interview
Once USDA reviews your documentation, they will issue a loan approval. You will be required to have
an interview with USDA to review your loan program. This happens before the loan closes and prior to
you working on your home.
8.
Households that meet financial prequalification criteria
Households that are pre-approved by SCH may be pre-approved with certain down payment programs.
Applicants must cooperate to meet the deadlines for submittals and to be available for staff to
contact them to provide updated documents and pay stubs several times throughout the loan
process and construction period. It is also important to note that you may need to come to
meetings, signing, etc. that may require you to take time off of work.
9.
Lot Selection Process
Before construction begins, applicants who have been pre-approved by the lender and SCH staff will
select the home site they are purchasing at a meeting with the other pre-approved applicants. Before
selecting the home site, you will have an opportunity to view the project site plan, the exterior design
and exterior colors of each home on the site plan. All exterior design and colors have been pre-selected
and approved by the City’s Planning Department. A binder that contains information about that home
site, the proposed loan documents, and information on the community amenities will be given to each
family after they select a home site. Lower process numbers have first choice of the available lots.
10.
Additional Homebuyer Financing
In addition, the Loan Packaging staff will be submitting applications for secondary loans that buyers are
receiving from several agencies. Buyers need to meet with SCH staff to sign the applications and
documentation. They will require updated paystubs, verifications of employment, and any new tax
documents from all buyers prior to final loan approval.
11.
Pre-Construction Trainings and Meetings
Prior to construction, selected homeowners meet the construction staff for an overview of the
construction process and schedule. Tool and insurance kit deposit of $1,200 - $1,600 will be collected.
Homeowners will receive construction training which will include the number of hours of work
required, timesheets, rules for volunteers and construction techniques. Specific dates and times for
training will be provided.
13.
8-Hour Home Buyer education
All qualified applicants will be asked to attend a mandatory 8-hour homebuyer education program prior
to entering into a purchase contract. This class will cover finances, budgeting, credit issues, the resale
restriction documents and financing that the majority of the home buyers are receiving. The class is
usually held on a Saturday. Dates and times for classes will be available at a later date.
Please Note- Online course only accepted if no alternatives are available.
14.
Purchase Contract and Close of Escrow
After you have obtained loan approval from USDA and have completed an 8 hour homebuyer education
course, you are ready to sign a purchase contract for the lot that your home will be built on. SCH will
work with you to complete a purchase contract and all of the necessary disclosures.
A good faith deposit will be required with the purchase contract and it will be put into escrow at First
American Title Company. Please note every family will be required to be required to put down a
minimum investment in the purchase, however this amount will vary depending on income and available
assets.
Prior to final escrow closing, you will meet with SCH staff to sign papers accepting the secondary loans
and a Resale Restriction Agreement document that are required for the purchase of your home. Upon
final loan approval, all loan documents and previously signed documents are sent to the escrow officer
at the title company.
You will be purchasing a finished lot and will be closing escrow prior to the completion of your home.
You will be required to have funds available for the closing costs at the time of purchase. The funds that
you have available will need to cover approximately $3,000 of closing costs and $4,000 of pre-paid
taxes and insurance reserves. Additionally, the lender may require that you put a down payment on your
home based on your available assets. During the construction process, you will not be required to make
any monthly payments to your lender.
15.
Customer Service Orientation meeting
Prior to the final key release, all home buyers will meet with an SCH Customer Service Representative
for a final walkthrough of the home, which includes review of the equipment in the home, and the
maintenance required for a new home. This meeting is usually on a Saturday for about 4-6 hours and
attendance is mandatory.
16.
Move into Your New Home!
Once the home is complete and has been released by City of Hollister and USDA for occupancy, all
groups of families will have a key release party. You will be required to sign documents converting
your construction financing to permit financing through USDA. Your first monthly housing payment
will be due within 30 days of your home being certified for occupancy.
CONGRATULATIONS AND GOOD LUCK!
South County Housing reserves the right to change program details as deemed necessary by South County
Housing