The City of Watsonville offers a First Time Homebuyer Program to help low income households purchase their first home within Watsonville City limits. To be eligible for the program you must have NOT owned or held ownership interest in a home or other real estate within the last three years; and households whose annual projected gross income does not exceed the income limits based on size is eligible(listed on website). The  Homebuyers must also be able to provide at least 3% of the sales price toward the purchase of the home and successfully complete a City-approved homebuyer education class. To apply for the program the prospective homebuyers should start by getting pre-qualified for a first mortgage loan with a lender who is either familiar with or willing to work with the Program. First mortgage loans must be fully amortized over a minimum of 30 years at a fixed interest rate. Once pre-qualified, the homebuyer should start looking for homes within the price range recommended by the lender, which should be determined taking into consideration the amount of the first mortgage loan, down payment and our Program limits should you need additional assistance. After the homebuyer has entered into an agreement to purchase, their lender must contact the Community Development Department, Housing Division to begin the application process. The City will review the application and work with the lender to determine eligibility and complete the transaction. The program has guidelines and other important information listed on their website. They also have information in English and Spanish and have staff that speak English and Spanish. Please call to get more detailed information about the program.