Downpayment Assistance Program Information

Program Details

Working with Neighborhood Housing Services Silicon Valley, the Housing Trust has created a new downpayment assistance program to help low- and moderate-income families, providing low-interest secondary financing that may be used as a downpayment for first-time homebuyers.

Who It Helps: First-time homebuyers earning between 60% - 100% AMI who have not owned a home in Santa Clara County in the last 3 years and who meet certain other qualifications.

How It Helps: The Housing Trust has established a fund at Neighborhood Housing Services Silicon Valley (NHSSV) to provide fixed, below-market rate secondary financing that may be used as a down-payment for first-time homebuyers.  Qualified first-time homebuyers may borrow up to $15,000 from the Housing Trust of Santa Clara County when they finance their home through NHSSV. The loan, compatible with Fannie Mae and CalHFA requirements, will be interest bearing and will be performing from the outset.

Why do we do all of this? Our mission is to help create affordable homes for Silicon Valley families. We can do this by forging new partnerships, advocating for sources of funding for first-time homebuyers and by creating new loan products that meet the needs of today's borrowers.

Qualifications

In order to qualify for this loan, you must meet a few specific requirements. There aren't many of them, but they are important and you must be able to prove that you meet each and every one of them.

1. Your Total Household Annual Gross Income cannot be less than 60% or more than 100% of the area's media income. Therefore, based on the number of people in your household, your total income must fall between the two income figures below:

   Income Limits	1 Person	2 Persons	3 Persons	4 Persons	5 Persons	6 Persons	7 Persons	8 Persons
   60%	$ 44,350	$ 50,650	$ 57,000	$ 63,300	$ 68,350	$ 73,450	$ 78,500	$ 83,600
   100%	$ 73,900	$ 84,400	$ 95,000	$ 105,500	$ 113,900	$ 122,400	$ 130,800	$ 139,300
   Source:  U.S. Department of Housing and Urban Development (HUD), 3/2008

2. If your entire household income, based on the size of your household, is more than the 100% figure, you may be eligible for the Mortgage Assistance Program.  For information on the Mortgage Assistance Program, CLICK HERE.  If your entire household income is less than the 60% figure, the Housing Trust does not have a program available for you at this time, please contact NHSSV as there may be other programs and services available to you.
3. All borrower's credit (FICO) scores must be 620 or greater, as defined by the Fair-Isaac scoring system.
4. Your Total Household Debt to Income Ratio cannot be more than 45%. That means that when you add up all of your debts, including the expected cost of your new home mortgage (such as Principle, Interest, Taxes, and Insurance), any car payments, credit card payments and any and all other debts, loans, charge accounts, and business expenses, if applicable, etc., that you have, those total monthly payments must not be greater than 45% of your Total Monthly Household Gross Income, based on the size of your household as defined above.
5. The purchase price of your new home cannot exceed $550,000.
6. Continuous employment for 24 months prior to application must be demonstrated. Changing jobs and moving directly from one into another is OK. Not working for a period of time (say, more than 90 days) “in between” jobs is not considered to be continuous employment unless there are specific and compelling reasons that can be confirmed by your employer.
7. You must not have owned a home during the past 36 months in Santa Clara County, CA.
8. As an applicant for this loan program, you are ineligible for other Housing Trust programs.

If you meet all of the above criteria, then you may qualify for this loan program.

Details of this loan

Please review all the loan details and gain an understanding of why this loan may or may not be the best choice for you.

In addition to providing a cost-effective loan that will help you to better afford your first home, we are concerned about offering you a loan that is safe, secure, sensible and smart for you. We do not offer exotic loans. We don’t offer teaser rates or special enticements to get you to “buy” from us. We offer simple loans with a few simple financing choices that we believe will enable you to buy the right home the first time: a home that you will want to stay in for a while and build roots in your community. A loan that you can afford now and in the future.

The subordinate mortgage loan that we offer is a below market, fixed interest rate, 30 year, fully amortizing loan with a maximum amount of $15,000.  This loan can only be used for down payment and/or closing cost assistance.

The first mortgage on your proposed home must be a fixed rate, 30-year, fully amortizing loan only. NHSSV will respect any relationship that the borrower may have with a real estate agent or broker.

How to Apply For This Loan