UPDATE: Alameda Housing Authority and Hello Housing are not accepting applications to the DPA program this fiscal year, ending June 30, 2017.
What is the Alameda Down Payment Assistance (DPA) Program?
It is a second mortgage loan program to assist qualified low-and moderate-income individuals with the purchase of their first home.
What are the maximum income limits and DPA loan amounts?
Households earning at or below 80% of the Area Median Income are eligible for up to an $80,000 loan. Those earning between 81% and 120% of the Area Median Income are eligible for up to a $50,000 loan. Take a look at the chart shown here to see who qualifies. Actual loan amounts are determined by borrower’s financial need.
Who is eligible for a loan?
Borrower must be a first time homebuyer, which is a household that has not owned a Principal Residence within the past three years. Borrowers must be able to qualify for a first mortgage from a participating lender. Other restrictions apply. For a list of program parameters, click here.
What homes are eligible for purchase?
Homebuyers may purchase an existing single-family detached home, condominium, or townhouse located anywhere within Alameda City Limits.
What are the loan terms?
- The loan is a zero-interest, 15-year loan. Loan payments are deferred, with the loan being due at the end of 15 years, or earlier if the house is sold or transferred.
- Instead of paying interest on the loan, the homebuyer will owe the City a portion of the increased value of the home at the time the loan is paid back. This is called a Shared Appreciation loan. If the loan is repaid within five years, there is no interest or share of the appreciation due and the Homebuyer only has to pay back the principal.
- A $500 fee is due upon closing of the loan in order to cover a portion of the costs associated with loan processing, review, underwriting, and the preparation on loan documents. In addition the homebuyer will be required to pay a small fee equal to the City’s loan set-up costs. Both fees will be paid with other closing costs through escrow.
The Down Payment Assistance Loan Program may be used in conjunction with affordable units generated through the Inclusionary Zoning Ordinance to purchase a new below market rate home.
Are there any other requirements?
- Borrowers must attend a HUD-certified Homebuyer Counseling Workshop. Click here for a list of Counseling Agencies that offer the required certificate.
- A home purchased under the Down Payment Assistance program must be, and remain, the borrower’s principal place of residence. The property cannot be leased or rented during the term of the City loan.
- Funds are limited. Assistance is provided on a first-come, first-served basis, as long as funds remain available.
Provisions for persons with disabilities
If any person with an interest in participating in a Community Development Block Grant (CDBG) / HOME program and is a person with a disability as defined by Section 504 of the Rehabilitation Act of 1974 who requires an accommodation to participate or take interest, that person must make a request for accommodation to Rosemary Valeska who can be reached at (510) 747-4316 or by email at firstname.lastname@example.org. Such request should include a description of the accommodation sought, along with a statement of the impairment that necessitates the accommodation. Any request for accommodation will be reviewed and a response provided within five business days of receipt of such request. Notice of any accommodation granted will be promptly provided to the requester. Please contact the City at (510) 747-4316 (Voice) (510) 522-8467 (TDD) or email email@example.com to request any other reasonable accommodations that may be necessary. The CDBG/HOME Section 504 coordinator is Vanessa Cooper. Ms. Cooper can be reached at (510)747-4325 or firstname.lastname@example.org. A copy of the City’s 504 grievance procedure can be found online at www.alamedahsg.org
Program Income Limits (effective 2014)
|Income Limit at 80% AMI
(max loan of $80K)
|Income Limit at 120% AMI
(max loan of $50K)
Interested? Here are some resources to help you get started
APPLY NOW: Down Payment Assistance Loan Application
Stay Connected for announcements about the upcoming lotteries for new affordable homes in Alameda.