California Down Payment Assistance

The City of Alameda offers many resources to both home owners and home buyers looking to move to the city.  I want to focus on the home buyer programs that are available through the city here.

First Time Homebuyer Workshops - Hundreds of people have taken advantage of the City’s Home Buyer Workshop. The workshops cover the complete home buying process including the following topics:

Overview of the Home Buying Process

• Credit & Budgeting
• Qualifying for a Loan
• The City’s Downpayment Assistance Program
• The Loan Application/Preapproval Process
• Selecting a Home
• Role of the Real Estate Agent
• Home Maintenance
• Foreclosure Prevention

Workshops are conducted by First Home, Inc. and participants must register to attend. Please register by calling 888.572.1222 x110, or Click here to register.

The next workshops are scheduled for:

• Saturday, November 15th

2009 Workshops

• Saturday, February 21st
• Saturday, May 16th

Down Payment Assistance Programs - The Downpayment Assistance Program offers generous financial assistance to first time homebuyers looking to purchase a home in Alameda. The program provides loans from $50,000 to $80,000 and is available to households with a wide range of incomes. Eligible uses of program funds include downpayment and/or closing costs for the purchase of a single family residence anywhere in Alameda.

This program is being administered by First Home, Inc. For more information, please call First Home directly, at (888) 572-1222 ext. 110. Click here to visit their website.

To view the Down Payment Assistance Program brochure, click here.

Alameda County Mortgage Credit Certificates - The Mortgage Credit Certificate Program (MCC) is a federal program that helps first-time homebuyers to qualify for mortgage loans. MCCs give homebuyers a “dollar for dollar” tax credit against federal income taxes equal to up to fifteen percent (15%) of annual mortgage interest. By effectively reducing monthly mortgage payments, MCCs give homebuyers greater ability to qualify for and support a mortgage loan. Program participants are subject to limits on maximum household income and maximum home purchase price. If the home buyers’ tax liability is lower than their available MCC tax credit, they can carry forward the unused tax credit for three additional years.

The MCC program for the City of Alameda is administered by the Alameda County Housing and Community Development Department. The County has administered the MCC program since 1989, assisting home buyers in traditionally high-cost housing markets throughout Alameda County. Since 1994, 110 households have been assisted through the MCC program in the City of Alameda. From 1999 through 2003, seven Alameda households were assisted through the Alameda County MCC for more information about the MCC program, or to obtain a list of participating lenders, contact the Alameda County Housing and Community Development Department office at (510) 670-5246, or visit their website at www.acgov.org/cda/mcc_program/.

Program Highlights 

Program Summary:  CalSTRS is the California State Teachers Retirement Program providing retirement related benefits to teachers in public schools and Community Colleges in the State of California.  Facts about CalSTRS:

• Largest U.S. Teachers Retirement Fund
• 2nd Largest U.S. Public Pension Fund
• CalSTRS assets stands at $164 Billion as of March 31, 2008
• CalSTRS membership stands at 795,000

The CalSTRS Home Loan Program was established in 1984 as a result of legislation that provided CalSTRS with a mortgage-backed security investment opportunity and restructured in July of 2004.  It was designed as an additional source of home financing for its members and retirees giving them a great choice of mortage loans with competitive rates.

How this program benefits you:  Borrowers can obtain a great laon with a competitive rate - and your money works for you since income derived from mortgage payments goes directly into the Teachers’ Retirement Fund.

Term:  15 or 30 Year term

CalSTRS Interest Rates:  Check Today’s Rates Here

Conforming Loan Amount:  Up to $417,000

Non Conforming Loan Amount:  $417,001 to $834,000

Max Loan to Value (LTV) - 1st:  95% (90% in declining markets)

Max Combined Loan to Value (CLTV):  95%

Loan Purpose:  Purchase, Rate and Term Refinance, Cash Out Refinance

Eligible Properties:  Single Family Residence, 2 - 4 Units, Condominiums, Planned Urban Developments (PUD)

Sources of Closing Costs:  Borrower’s own funds, seller contributions up to 3%, gift from relative, equity in home.

Own Other Properties:  Borrower can own other properties but only 1 CalSTRS mortgage at a time.

Minimum Credit Scores:  620 Minimum Credit Score - NOTE:  There are Pricing adjustments based on Loan to Value, Credit Score, Purpose of Loan and Number of Units that will appear as Loan Charges on your Good Faith Estimate. 

Because CalSTRS sets all interest rates, these fees can not be included in the rate as other conventional loan programs do.  Rate and Term Refinances on SFR, Condo, PUD properties with a Credit Score over 720 have no pricing adjustments up to 95% LTV.