New Program Aims to Help Low-Income Buyers Enter California’s Housing Market

First-time homebuyers in California’s Bay Area struggling with down payments can now apply for loans up to $200,000 through a new program designed to help low-income earners become homeowners.

Looking to get Pre-Approved to buy a home? Talk to someone about your options here, or keep reading.

California’s Housing Affordability Crisis

California represents one of America’s most expensive housing markets, with the Bay Area seeing particularly high prices. As of February, California’s median home sale price reached $832,500—a 6% increase from the previous year and nearly 70% higher than February 2020’s median of $565,400. San Francisco and San Jose both reported median home prices around $1.4 million.

With continuously rising home prices and mortgage rates between 6-7%, many aspiring homeowners—especially those with lower incomes—have been forced to postpone their homeownership dreams.

The Home Access Program Details

Housing Trust Silicon Valley, a San Jose-based nonprofit, created the Home Access Program to offer down payment assistance of up to 40% of a home’s purchase price, with a maximum of $200,000.

Eligibility Requirements:

• Must be a first-time homebuyer purchasing a primary residence
• Property must be located in either Alameda or Contra Costa County
• Combined household income cannot exceed 80% of the area median income
• Preapproval required from a participating lender before application
• Minimum personal contribution of 3% toward the home’s purchase price
• Completion of an eight-hour HUD-certified homebuyer education class

Maximum Income Limits:

• One-person household: $84,600
• Two-person household: $96,650
• Three-person household: $108,750
• Four-person household: $120,800
• Five-person household: $130,500
• Six-person household: $140,150

Eligible properties include single-family homes, townhomes, and condos in either Alameda or Contra Costa County.

Loan Terms

The assistance comes as a 30-year deferred loan with simple interest accruing annually. No monthly payments are required, but borrowers must repay the loan at the end of the 30-year term or upon selling the property, whichever comes first. Interest accumulates on the principal amount until repayment.

For context, Alameda County’s median home sale price was $1,117,500 in February, up 1.8% year-over-year. Contra Costa County’s median price was $785,000, a 1.9% increase from the previous year.

How to Apply

Potential applicants who believe they meet the eligibility requirements can submit an interest form through Housing Trust Silicon Valley. The organization promises to respond to inquiries within three business days.