The Inclusionary Housing Ordinance of Folsom gives the opportunity of home ownership to those people who earn incomes at or below “very low income”, “low income”, and “moderate income”, as published by the Department of Housing and Urban Development.

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No, this program is available to all lenders who are licensed with NMLS and are a business in good standing with the State of California. The City of Folsom does not maintain a list of approved lenders.

No. The buyer of the Affordable Deed Restricted Unit is required to be owner-occupant; a non-occupying co-signer or co-borrower will not be allowed to participate in the purchase of the Affordable Deed Restricted Unit.

Yes, the program does not restrict the use of gift funds for the purchase of the Affordable Deed Restricted Unit. The buyer’s family members would be required to provide a gift letter with proof of sufficient funds to make the purchase.

No. Buyers of these units are required to remain as owner occupants. Therefore, purchase of an Affordable Deed Restricted Unit for investment or rental purposes is not allowed and is strictly forbidden. 

Interested buyers that are self-employed will be required to provide a Profit & Loss Statement prepared by a Certified Public Account. The City of Folsom will not accept self-prepared Profit & Loss Statements. The gross income less the allowable deductible expenses (as determined by a tax professional) is what will be used for determining monthly income for those who are self-employed.

To calculate a seasonal worker’s income, we will use the previous 2 years' tax returns and a current Year-to-Date Profit and Loss Statement to calculate self-employment income.

Students are eligible as long as the student falls under the income limits for the program. If the student currently receives no income, additional documentation will need to be provided to prove the student receives no other subsidy or financial support – ie: statements from IRS, EDD, Dept. Human Services, etc.

Yes. However, the total retirement funds available will be added to the total liquid assets and for the income certification and .06% of the total assets will be calculated and added to the total household income calculation.

It depends. The mortgage lender you are applying with would determine if you are able to obtain a refinance. The City of Folsom’s program guidelines do no prohibit existing owners of Affordable Deed Restricted Units, that do not have a loan with the City of Folsom, from being able to refinance.

The same restrictions for selling and renting an Affordable Deed Restricted Units would apply. If an heir wants to occupy the unit as their new residence, they would be permitted to do so but would be required to notify the City of Folsom and provide proof of their rights as the surviving heir.