Santa Cruz County holding lottery for Measure J home

Santa Cruz County is holding a Measure J home-buying lottery to give qualified applicants the chance to buy a house.

The lottery is open to pre-qualified buyers who meet certain income and buying requirements that include being a first-time homebuyer, living or working in the county for a minimum of 60 days and earning at or below moderate household income limits. It is also suitable for households of five to nine members.

The Live Oak house built in 2003 has four bedrooms, three bathrooms and a large backyard. It is expected to sell for less than $450,000, which the county said is half of the market value for comparable homes or less. The county said any purchase would be subject to Measure J deed restrictions in the future.

To participate, buyers must fill out a pre-application form and submit a loan pre-qualification letter to the Santa Cruz County Planning Department between Oct. 1 and 7. They must also be qualified for a conventional, fixed-rate, 30-year mortgage of at least 70% of the house’s purchase price. They must also have enough funds for a down payment and closing costs. The minimum down payment that is 3% of the purchase prise is required, and up to 50% of that can be gift funds.

A drawing for the lottery will be held at 4:30 p.m. on Oct. 11 on the fourth floor of 701 Ocean Street. Potential buyers are not required to attend the drawing and will be notified of their ranking within three days.

The buyer chosen will be required to complete a First Time Home Buyer Class before close of escrow.