To squarely address the daunting hurdle of home affordability in the Bay Area, the Housing Trust Silicon Valley has launched the Home Access Program. The initiative is designed to extend a much-needed lifeline to first-time homebuyers who face an uphill battle amassing the substantial down payment often required in this high-cost housing market. Through this program, eligible applicants could receive up to $200,000 towards their down payment, marking a significant step in their pursuit of homeownership.
The program, partially underwritten by funds from the California Department of Housing and Community Development's CalHome Program, specifically, is positioned to help low-income earners. Participants can borrow up to 40% of the purchase price of a home, with the stipulation that no monthly principal or interest payments will be needed during the life of the loan.
As per Housing Trust Silicon Valley, the Home Access Program is structured as a 30-year deferred loan, meaning that principal and accrued simple interest repayment is due at the term's end. Ambitious homebuyers looking to apply for assistance must meet a roster of prerequisites, including attending an eight-hour HUD-certified Homebuyer Education Class through an agency specified by the program, putting down a minimum of 3% towards the purchase price of a prospective home, and submitting to a lender pre-approval process.
To be considered, applicants must not have a combined gross household income that exceeds 80% of the area median income for the county where the property is located. In Alameda and Contra Costa counties, this caps at an income of $96,650 for a two-person household. Specific housing types are eligible for purchase under the program, with single-family homes, townhomes, or condominiums all fitting the bill, as long as they are to be occupied as a primary residence. As the program guidelines make clear, eligibility is not to merely be assumed; rather, hopeful homebuyers must navigate a rigorous process to be duly considered.
The no-interest loan and its generous cap are set against the backdrop of California's notoriously expensive housing market, where the average price point of homes "far exceed the rest of the country," according to a Realtor.com report citing data from the California Legislative Analyst's Office. For interested parties, initial steps toward application involve completing an online form and undergoing a prequalifying process facilitated by Housing Trust staff.
