ReCoverCA HBA - Overview
Program Overview
ReCoverCA Homebuyer Assistance Program
Availability of Funds
As of October 9, 2024
Fully Allocated
Funding is limited and provided to eligible borrowers on a first-come, first-served basis. All Program funds for the eligible 2018 and 2020 California wildfire areas are currently allocated. -- Please check back for updates.
Homebuyer Assistance Up to $350,000 per Household
The ReCoverCA Homebuyer Assistance Program is designed to help low- to moderate-income (LMI) households who lived in high or very high Fire Hazard Severity Zones of California during past wildfires to purchase a home in California outside of these high fire hazard areas.
The Program provides homebuyer assistance up to $350,000 in the form of a Second Mortgage Loan, which is forgiven after five years of maintaining ownership and occupancy. This assistance aims to bridge the affordability gap between what an applicant could afford with a First Mortgage Loan and the purchase price of a property.
Program Highlights(1)
- Homebuyer assistance up to $350,000 per household
- Assistance forgiven after five years ownership and occupancy
- Renters or homeowners impacted by qualifying wildfires are eligible
- Perfect credit not required: FICO scores as low as 640 can qualify
- Single-family residences, townhomes, condominiums, and manufactured homes eligible
- FHA, VA, USDA and Conventional Mortgage Loan financing available
How to Apply if You are a Homebuyer
We are here to answer questions about the Program and provide a general understanding of how it may help you purchase a home in California. When you are ready to discuss your personal financial situation and/or get started, you will need to work with one of our ReCoverCA HBA Lenders.
GSFA is not a direct lender and relies on a network of ReCoverCA HBA Lenders to determine applicant eligibility, process applications, and furnish current interest rates and APRs.
Lender Participation Guide
The Lender Participation Guide furnishes Lenders (and real estate professionals) with complete program policies, and an understanding of the steps to be taken to process loan applications for the ReCoverCA Homebuyer Assistance Program. Information in the Lender Participation Guide is intended for mortgage professionals only.
Quick Links
ReCoverCA Homebuyer Assistance Program
Eligibility Requirements & Assistance Terms(1)
Applicants are required to meet program policies and requirements. Frequently asked questions about eligibility and the terms and conditions for homebuyer assistance are outlined below. When you are ready to get started, or if you have questions about your individual circumstances, talk with a ReCoverCA HBA Lender. Our lenders will help you determine how much homebuyer assistance you qualify for under the Program. They will also provide complete program policies, eligibility requirements, interest rates, APRs and process your loan application.
Who is Eligible?
Current program eligibility is limited to low- to moderate-income homeowners and renters whose primary residence, at the time of the qualifying disasters, was located in high or very high Fire Hazard Severity Zones.
2018 Qualifying Disaster Areas
Updated 9/30/2024
- Butte County
- Lake County
- Los Angeles County
- Shasta County
What Properties are Eligible?
Properties eligible to be purchased through the ReCoverCA Homebuyer Assistance Program must be located in California outside of high or very high Fire Hazard Severity Zones.
Eligible Property Types
- Single-family homes (1 unit only)
- Townhomes
- Agency approved condominiums
- Planned unit developments (PUDs)
- Manufactured housing
Number of Bedrooms
The number of bedrooms allowed is dependent on the household size. The program follows the federal standard of 1.5 persons per bedroom for the minimum number of bedrooms allowed, along with the following occupancy standards, which set the maximum number of bedrooms allowed as set forth below:
Homebuyer Assistance Terms
The Program provides homebuyer assistance up to $350,000 per household, to fill the affordability gap between what First Mortgage Loan the applicant can qualify for and the purchase price of the home. The assistance is intended to cover the applicant’s down payment, closing costs (customary/reasonable), and prepaids up to a cap of $350,000.
HBA Loan Terms
The homebuyer assistance is provided in the form of a deferred Second Mortgage Loan (HBA Loan) with a zero percent note rate. The HBA Loan does not acrue interest, has no monthly payments, and is completely forgiven after the new homeowner maintains ownership and lives in the home for five years.
Calculating the Assistance Amount
GSFA Participating Lenders will help applicants calculate how much assistance they qualify for under the ReCoverCA Homebuyer Assistance Program.
The HBA Loan amount is based-on the maximum qualifying First Mortgage Loan amount, and the purchase price or appraised value (whichever is less) of the home.
The HBA Loan amount is reduced by the amount of any assistance the applicant received (and has not used) from other sources that were intended for the same purpose (housing) and any cash reserves over $100,000 that the applicant may have. The maximum HBA Loan amount is capped at $350,000 per household.
Questions or Ready to Get Started?
(1)This web page contains general program information, is not an offer for extension of credit nor a commitment to lend and is subject to change without notice. Complete program policies, eligibility requirements, loan applications, interest rates and annual percentage rates (APRs) are available through ReCoverCA HBA Lenders.
The ReCoverCA Homebuyer Assistance (DR-HBA) Program is provided by the California Department of Housing and Community Development (HCD) in collaboration with GSFA as Program Manager. Funding for the Program is made possible through a Community Development Block Grant - Disaster Recovery (CDBG-DR) grant from HUD. GSFA is a duly constituted public entity and agency.