Good News for First-Time Homebuyers in California's Bay Area
- Author: Margaret Hills
- Posted: 2025-04-22
A new program offers up to $200,000 as a loan to assist with buying a home.
Read more: The Age of First-Time Homebuyers is Reaching New Heights
Why This Program Matters
California has one of the highest housing costs in the U.S., with home prices in the Bay Area being particularly steep.
For example, as of February, the typical home in California cost $832,500. This price has increased significantly from $565,400 in February 2020. Prices in San Francisco and San Jose are even higher, around $1.4 million.
Because home prices and mortgage rates are high, many people with lower incomes can't afford to buy a home and have to give up on their dream of owning one.
Details About the Home Access Program
The Home Access Program, designed by Housing Trust Silicon Valley, aims to make buying a home more achievable. It offers a loan to cover up to 40% of the purchase price, which can be as much as $200,000.
This program is only for first-time homebuyers planning to buy their primary residence in Alameda or Contra Costa County. To qualify, a family's income must not exceed 80% of the median income for the area they are buying in. For instance, the income limits are:
- For a one-person household: $84,600
- For a two-person household: $96,650
- Up through a six-person household: $140,150
Besides these requirements, applicants need to get pre-approval from a lender participating in the program, put at least 3% of the home's price as down payment themselves, and complete an eight-hour homebuyer education class approved by the Department of Housing and Urban Development.
Loan Terms
The down payment assistance is given as a 30-year deferred loan. This means there are no monthly payments, but the loan's interest accumulates yearly and the full amount needs to be paid back after 30 years or when the property is sold, whichever comes first.
How to Apply
If you're a first-time homebuyer interested in this program, you can fill out an interest form. The Housing Trust Silicon Valley says it will respond within three business days.
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