First Time Homebuyer Program

Many families dream of one day owning their own home.  The housing market has varied greatly over the years, often leaving Watsonville families outside this market.  Since 1995 the City of Watsonville, in conjunction with the former Watsonville Redevelopment Agency have offered programs to help families purchase a home.

The original program approved by the City Council in 1995 used a patchwork of funding sources, including redevelopment funds set aside strictly for affordable housing, as well as grants.  The principal grant used for this program has been the Federal Home Investment Partnership Program, also known as HOME.  In an effort to offer this help directly to Watsonville residents, the guidelines have given preference to applicants that have lived and worked in Watsonville for at least one year prior to applying.  The guidelines have allowed local teachers, library workers, recreation staff and others who provide services in our community, including qualifying City employees, to stay in Watsonville.  The assistance to City employees represents less than 10% of the total loans given.

Until recently the City offered two programs:  Down Payment Assistance and First Time Homebuyer.  Currently only the First Time Homebuyer program is available.  The original Down Payment Assistance program was funded with affordable housing redevelopment funds (no longer available), while the First Time Homebuyer program is funded with federal and state grants.

We invite you to visit the City of Watsonville website – www.cityofwatsonville.org to obtain more information about our housing programs, including guidelines, income limits and other important details.