What are affordability covenants and how do they affect my home purchase?
The City uses State and Federal funds to help low- and moderate-income first-time homebuyers purchase homes that are decent and affordable. When a home is purchased with these funds, restrictions or “covenants” are placed on the property to ensure that the property remains affordable for low-income families well into the future.

The length of the affordability period may range from 10-45 years depending on the funding source. Generally speaking, If the home is sold within the affordability period it must be sold to another eligible low-income homebuyer.

Sometimes the affordability period is confused with the loan term, or the length of time a homeowner has to repay the loan. Contact our housing staff for more information on affordability periods and financing options.

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1. What are the current income limits?
2. What is the definition of a First-Time Homebuyer?
3. What is the current allowed Maximum Purchase Price for the Shasta Lake Homebuyer Program?
4. Must the home purchased be located in the City Limits of Shasta Lake?
5. How much can I borrow?
6. Do I have to contribute funds towards the transaction?
7. What are the terms of the loan and interest rate?
8. Is owner occupancy required?
9. What happens if I need to sell my home during the term of the loan?
10. What are affordability covenants and how do they affect my home purchase?
11. I have heard the terms “housing ratio” and “debt-to-income” ratio. What do they mean?
12. If I participated in a short sale for my previous owned home, do I still qualify?