The City of Petaluma has had a First Time Homebuyer Program since the mid-1980’s.

Petaluma is committed to making the owning of a home an affordable, reachable reality for low to moderate income home buyers.

The program was created to give low and moderate income families the opportunity to participate in the “American Dream” of home ownership.

The program makes housing affordable to families that would otherwise not be able to afford to live in Petaluma.

Program Details

The First Time Homebuyers Program is available for low and moderate-income households. Low and moderate income is from 80% to 120% of the area’s median income.

This is determined by the Department of Housing and Urban Development (HUD) and is updated each year.

The City of Petaluma has subsidized the first time homebuyers financing with “silent seconds” in the past.  Due to the loss of redevelopment housing funds, this program is suspended until funds are available.

The City of Petaluma is partnering with the Housing Land Trust of Sonoma County to continue to explore opportunities for new first time homebuyer properties in Petaluma.

Application Process

Contact the Housing Division (707.778.4555) to request a First Time Homebuyer Application or you may download (pdf) the application.

You may also contact the Housing Land Trust of Sonoma County to get details of their program or view their website at http://www.housinglandtrust.org.

Complete and return the application to the Housing Division at 27 Howard Street, Petaluma, CA 94952.

Your name will be placed on our mailing list and you will be notified by mail when a home becomes available for purchase.

Eligibility Criteria

1. First Time Home Buyer: You cannot have owned a home as their prinicipal residence within three (3) years prior to applying for this program with certain exceptions.
2. Owner Occupied: The home must be your principal place of residence and cannot be leased or rented during the term of the City loan.
3. Families that live or work within the City Limits are given a preference to purchase these homes.
4. Maximum Income: The household qualifying income for the First Time Homebuyer Program is between 80 to 120% of the Area Median Income (see attached pdf)

Communities in the Program

• Magnolia Hills – Established in 1988
• Madison Manor – Established in 1990
• Cherry Hills – Established in 1992
• Hillview Oaks – Established in 1992
• Corona Crescent – Established in 1994
• Wisteria Homes – Established in 1996
• Frates Square – Established in 2007

If funds are no longer available, or you are unable to meet the qualifications for this assistance program, there are other options that may be available to you.

California home buyers should also explore Mortgage Credit Certificates, CRA Programs, Lender/Agent Credits or other creative down payment and closing cost assistance options.