Is it ok if I already have a loan on the property when I apply for a city loan?
Yes. The city can take a second lien (deed of trust) behind a conventional lender (but not an individual) so long as the property appraises for a value on an "as-improved" basis sufficient to cover all debt on the property. If the property is seller-financed or another individual holds the first deed of trust, then they would be asked to subordinate their lien to a potential city loan during the application process.

Show All Answers

1. Can the city loan me the funds to buy a rental house or vacant land?
2. Is it ok if I already have a loan on the property when I apply for a city loan?
3. Can I do the work myself and be the general contractor?
4. Can I rent the unit(s) to relatives?
5. What if I don't have a very good credit report?
6. Can I utilize the loan program to fix-up a house and then sell?
7. What are the other HOME requirements?