Please note any of the definitions provided are specific solely to the Affordable Homeownership Program administered by the County of Santa Barbara Housing and Community Development department and should only be used for the purposes of this program.
Cash – Money in the form of bills or coins; currency; or its equivalent (e.g. check, money market accounts) available for immediate disposal.
Default – Failure to make required debt (mortgage) payments on a timely basis or to comply with any other conditions of a mortgage obligation or agreement.
Permanently reside – Permanent right to reside in the United States. Nothing about my(our) residency status could require me(us) to leave the United States or prevent me(us) from re-entering the United States.
Fair-market-value – The price an asset would receive in the open marketplace subject to the following: a) both buyer(s) and seller(s) have reasonable knowledge about the asset, b) a reasonable time period is given for the transaction to be completed, c) the values or price should represent an accurate evaluation or assessment of the assets' worth, and d) both buyer(s) and seller(s) agree to a price that an interested, but not desperate party would be willing to pay.
Financial Independence – Demonstrate that I(we) have not been claimed as a dependent on anyone’s tax returns in the previous 2 years. I(we) am(are) capable to maintain my(our) cost of living on my(our) own through the income earned from my(our) employer(s) without support form any other individual. Loans or gifts from relatives, associates, friends, etc., regardless of the terms, are considered financial assets.
First-time Homebuyer – A person or persons with no current ownership or interest in residential real estate and have not had any ownership or interest in residential real estate during a three-year period preceding their application for an affordable unit.
Gifted – Cash and/or other assets made available by another party for your use, with no obligation – expressed or implied – either in form of cash or future services, to repay this sum at any time.
Gross income – Total revenue and earnings received before any deductions or allowances, as for taxes, rent, cost of goods sold, social security, etc.
Household – All persons occupying a single dwelling unit or a group of persons living as a housekeeping unit for a period of six months prior to application, where a housekeeping unit shall mean two or more persons, related or not, but living together in a single housekeeping unit, sharing assets or not.
Income category – A category (“Very-low”, “Low”, “Lower-Moderate”, “Upper-Moderate”, or “Middle-Median”) in which the household's total combined income does not exceed the maximum total Gross Income limit for the respective category.
Loan-to-Value (LTV) ratio – The lending risk assessment ratio expressing the amount of a mortage lien as a percentage of the total appraised value of real residential property. For example, if a borrower wants $80,000 to purchase a $100,000 property, the LTV ratio yields a value of 80%, calculated as $80,000/$100,000.
Pre-approval Letter – A letter from an FDIC institutional lender that states the borrower’s credit, bank references and employment has been verified. It informs a buyer of the loan amount they can obtain.
Unincorporated areas – A region of land in the County that is not within the boundaries of any city and not governed by a local municipality.
*The information contained in this website is subject to change at anytime without prior notice