To qualify, the buyer must have an income at 80% or less of the county median income or  about $3300 per month for a 2 person household. The concept behind these loans is that the buyer must be able to secure a first mortgage, but can’t buy the property without a second, which is typically needed for the down payment. Larry Busby, the executive director of the Central Sierra Planning Council, the agency contracted to administer the loan approval process, said these loans remain in place until the property is sold or title changes hands.

At that time, the funds become available again to new buyers. Outreach for this program is done mostly through realtors, lenders and title companies. While the three loan application were rejected Monday, Supervisors Boitano and Forster both said they would consider these same buyers again if they can bring their debt ratio down by proposing less expensive homes. Supervisor Forester said homes in the Sacramento area had come down about $40,000, and that Amador County buyers petitioning for county loans should be looking for homes under $200,000. This may mean they will need to consider mobile homes.