Loading...
PresentationsEMPOWER HOMEBUYERS SCC: COUNTY OF SANTA CLARAFIRST TIME HOMEBUYER PROGRAM Office of Supportive Housing and Housing Trust Silicon Valley1July 30, 2019CHC 11-13-19 Item #2 2016 Measure A Affordable Housing Bond Empower Homebuyers SCC ProgramThe County of Santa Clara and the Housing Trust Silicon Valley have launched Empower Homebuyers SCCEmpower Homebuyers SCC is expected to assist approximately 250 households over the first five years.Empower Homebuyers is intended to put homeownership within reach for low to moderate income households Housing Trust Homebuyer ProgramsA nonprofit community lender formed in 2000 as a 501(c)(3) public benefit corporationHousing Trust has assisted over 2,500 homebuyersWe offer to all applicants for our loan programsPre-purchase counseling Homebuyer CounselingFunds are available for:Empower Homebuyers SCC –County of Santa Clara 2016 Measure A First-time Homebuyer Program administered by HTSVHomebuyer Empowerment Loan Program (HELP)BMP Administrator for the City of Santa Clara Empower Homebuyers SCC-County of Santa Clara County 2016 Measure A First-Time Homebuyer ProgramMaximum Gross Household Income cannot exceed:Household Income must not exceed the income limit according to the household sizeDown payment assistance up to 17% of the purchase price Maximum purchase price $800,000Subject Property must be located in Santa Clara CountyHousehold Size12345678Income$110,400 $126,150 $141,950 $157,700 $170,300 $182,950 $195,550 $208,150 Empower Homebuyers SCCTerm of the loan is 30 yearsNo payments until expiration of the term, sale, or cash-out refinance. No prepayment penaltyPrincipal and a Share of Appreciation will be dueShare of Appreciation = % of Empower loan amountAllows for deduction of Borrower Contribution - Qualifying Capital Improvements and Acquisition Closing Costs (non-recurring closing costs)Share of Appreciation is capped for the first ten (10) years of the loanCannot exceed the original Empower principal loan amount How do buyers apply?Buyers must attend an 8 Hour HUD certified Homebuyer Education ClassProject Sentinel, www.housing.org, 408-470-3732 HELP Borrower EligibilityMaximum gross annual household income (140% of Area Median Income):Maximum Purchase Price- $800,000Deferred loan of 10% of purchase price Can be used only for down payment Term is 30 yearsProgram Market Area: Property must be located in Santa Clara County or in the cities of Menlo Park and East Palo AltoHousehold Size1 2 3456Income$128,800 $147,140 $165,500 $183,960 $198,660 $213,260 Homebuyer Empowerment Loan Program (HELP)No payments until expiration of the term, sale, or cash-out refinance Principal and a Share of Appreciation will be dueShare of Appreciation = % of HELP loan amountExample (repayment in 7 years):$800,000(Original Purchase Price) x10%=$80,000 (HELP loan amount)$900,000 (Fair Market Value)-$ 800,000(Original Purchase Price)= $100,000 (Appreciation/Equity)$100,000 (Appreciation/Equity)x10%=$10,000 (Share of Appreciation to Housing Trust)