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- First Time Home Buyer Program
- Frequently Asked Questions
Frequently Asked Questions
Q 1: How long is the home purchase process through this Program?
A 1: The process normally takes 6-10 weeks or longer - from the time the City advertises the available homes to identify the eligibility list, to the buyer receiving mortgage approval and closing escrow on the home. In general, the City will advertise the home and open the application period for 30 days. The City will have 2 weeks to review applications and establish eligibility for the lottery drawing. The mortgage approval process depends on the lender's situation, but it can take approximately 30 days or more. In general, it can take 3-6 months from the date an application closes until a homeowner can move into their new home.
Q 2: Do I need to apply each time there is a home available?
A 2: Yes. Each application period has a lottery drawing that establishes the order of opportunity to purchase the available home(s).
Q 3: If I apply and the City determines I am not eligible due to my income, can I apply again and how long do I need to wait?
A 3: There is not a waiting period imposed by the City for you to apply again. You are encouraged to apply for the available homes to be considered in the lottery drawing. However, if the reason for your non-eligibility is due to over-income, and your income situation has not changed during a 1 year period, you may not want to apply for the same income category home during the same year. Income limits are published and changed each year by California Department of Housing and Community Development (HCD). If an applicant is disqualified for misrepresentation on an application, they may be prohibited from the Program in the future.
Q 4: What is accepted as proof of residency to qualify for Tier 1?
A 4: We accept a current lease or rental agreement as formal proof of residency. To qualify for Tier 1, (living in Moorpark for over a year) you will need to provide a lease or rental agreement that shows your move-in date. We will not consider utility bills or other mail as formal proof of residency.
Q 5: How do I know what documentation I need to provide to the City?
A 5: You can find a documentation list here.
Q 6: I was eligible and participated an earlier lottery, but was not able to purchase the home. Do I need to re-apply for the next lottery or am I automatically qualified?
A 6: Being in a past lottery does not qualify you for future ones. You will need to re-apply. The City may waive this requirement under special circumstances with a notification to existing lottery holders by the City's Housing Division.
Q 1: What is considered income and how does my household income get calculated for the Program?
A 1: Any payment of money or cash is typically considered as income. This could be money that you earned from a job (full or part time), governmental assistance such as social security or unemployment benefits, income from a business, or financial support from family and friends. The City of Moorpark utilizes Department of Housing and Urban Development (HUD) income calculation guidelines to calculate annual income. In general, we verify the current income sources from all residents as of the date of the application, and then calculate the total gross amount for a 12-month period as the household income. Income includes regular hourly or salary payments, overtime, and bonuses received during the past 60 days prior to the application due date.
Example 1: Mark submitted an application for the Program that was due on 11/3; he gets paid bi-weekly and provided 6 pay stubs from the period of 9/1 to 11/1. Mark did not receive any overtime or bonuses. His gross income per pay stub was $1,000.
Mark’s annual income would be calculated as:
$1,000 per pay stub x 26 paid period = $26,000
Example 2: Mary gets paid bi-weekly and provided 6 pay stubs from the period of 9/1 to 11/1. Mary gets paid hourly, but her work hours fluctuate and are not regular and she occasionally receives overtime or a bonus.
Mary’s YTD from pay stub: $23,000
Pay stubs – gross pay 1) $1,000; 2) $980; 3) $1,500; 4) $750; 5) $1,000; 6) $900
- Calculating income using Mary’s YTD calculation:
$23,000 / 11 (month) = $2,091 per month.
$2,091 x 12 month = $25,090 per year.
- Calculating income using average of pay stubs:
Total gross pay for 6 pay stubs: $1,000 + $980+ $1,500 + $750+ $1,000 + $900 = $6,130
$6,130 / 6 = $1,022 average gross pay per pay stub.
$1,022 x 26 pay stubs per year = $26,563 per year.
Mary’s annual income is the higher of the two = $26,563.
Q 2: Whose income is counted for my household?
A 2: Every adult that lives in your home is considered a household member, and every household member’s income is counted towards the total income for the Program. This includes husband, wife, partner, parents, grandparents, children over 18, and or anyone that intends to live in the home, over 18, after its purchase.
Q 3: Do annual bonuses or overtime count towards my income?
A 3: It depends. If the overtime or bonuses are regular, frequent, and/or predictable, then the overtime or bonus income received will be counted towards the household income. For example, if you work 2-5 hours of overtime each pay period, the income for the overtime will be counted. If you only work 2 hours of overtime every 3-5 months, the income for this overtime will not be counted. Overtime or bonuses which are seasonal in nature, but occur on a regular basis, will be counted towards the household income.
Important Note: Certain jobs are classified on a base salary and supplemented by regular overtime, like police, fire, medical or paramedical personnel. Although a person's base salary may be, for example, $40,000 a year, their position typically requires significant overtime be worked and their regular annual gross income is instead $60,000. In this example, the $60,000 annual gross income would be used for the Program qualifications. Therefore, a person's base salary is not relevant to the applicant's qualification.
Q 4: Does the City use gross income or net income?
A 4: HUD requires we use gross income to calculate your household income for the Program. Gross income is the amount of money you earn before anything is taken out for taxes or other deductions. For example, your monthly salary is $1,000 on your pay stub; but you might only receive a check for $850 after taxes are deducted. In this case, your gross income is $1,000.
Q 5: How do you verify if I am unemployed and don’t have any income?
Q 5: There are 2 documents to provide as proof of no income; submit an “Attestation of No Income” form that is attached to the application, and submit an IRS Form 4506-T “Request for Transcript of Tax Return”.
Q 6: Does seasonal or fluctuating income count towards my income?
A 6: Typically, all income will be accounted in the household income. For example, if a household member is attending school and works only during summers, vacations, and breaks, such income shall be estimated annually, with the amount based on the frequency and rate of pay. Such circumstances shall be reviewed by the City on a case-by-case determination.
Q 1: What are seasoned funds?
A 1: Seasoned funds means money that has not moved out of your bank account for more than 90 days, consecutively. For example, if you have $1,000 in your bank account every day for 3 months, that $1,000 is considered seasoned funds. If during the 3 month period your bank account balance drops from $1,000 to $500, and then goes back up to $1,000, only the $500 will be considered seasoned funds.
Q 2: I have cash at home. Will you count that as a source for down payment?
A 2: Cash at home will need to be deposited into a bank to be counted towards down payment. For cash to be counted as a seasoned fund, it will have to be in a bank account for 3 consecutive months, following the seasoned funds definition.