Did you know there are under-utilized mortgage assistance program in San Jose, CA and in Santa Clara County, CA provided by the Housing Trust of of Santa Clara County?
Yesterday, I had the pleasure meeting one of the most committed loan consultant on the front of helping first time home buyer ,Melinda Pacheco, and we discussed one of the under-utilized mortgage assistance programs available to first time home buyers and the general public in both city of San Jose and Santa Clara County.
As part of the Neighborhood Stabilization Program (NSP), the City of San Jose currently has a Purchase Assistance Loan Program (PAL) that provides a generous deferred loan of program of $50,000 to assist eligible home buyers to purchase foreclosed/short sale homes in designated San Jose census tracts. This loan is due at the end of the 30 years term, and does not have monthly payments during the term. Borrowers are required only to have minimum of 1% of their own funds.
Other mortgage assistance programs available to the eligible buyers in Santa Clara County include Closing Cost Assistance Program (CCAP) that provides a maximum loan amount that is 3% of the purchase price up to $15,000. This loan can be used for down payment or closing costs and carries 3% deferred simple interest. Term is 30 years, and payment is due at maturity, sale, or refinance.
Additionally, eligible home buyers purchasing homes in Santa Clara County also have access to mortgage assistance program (MAP) as an amortized second loan. The maximum loan amount is 17% of the purchase price up to $85,000. Interest rate is 1.5% ABOVE the rate on the first loan, and has a 30 year term. This loan is beneficial to buyers because it enables borrowers to get 80% loan-to-value on the first loan, and avoid private mortgage insurance (PMI), effectively saving money for the borrowers on a monthly basis.
Lastly, one of the less known mortgage assitance program in Santa Clara County is Equity Share Co-Investment (ESCO) loan that provides an option for borrowers to put down minimum of 5% of the purchase price as down payment, and the Housing Trust matches the down payment dollar for dollar. Maximum ESCO loan is 10% of the purchase price, up to $75,000, with the term of 15 years. There is no payments due on the ESCO loan during the term. At sale, refinancing or maturity, borrower and the Housing Trust share in any appreciation of the property in proportion to the percentage of the original equity investment. The Housing Trust share is capped at 9.5% simple interest per year.
In a nutshell, there are number of great options for first time home buyer mortgage assistance programs in the City of San Jose and in Santa Clara County. These resources are not well known, and are untapped, according to Melinda who had spoken to the manager of the Housing Trust of Santa Clara County. It's my job to inform and educate first time home buyers, so that YOU have options and knowledge to achieve your goals! I'm pleased to have connected with Melinda, the trusted loan consultant, who will be the trained specialist on how to make these loan programs work for you to achieve the dream of home-ownership!
Call Melinda or myself today, and mention this blog post to receive a free homebuying guide!
Melinda Pacheco: Office: 408-223-3086 Mobile: 925-785-8125
E-mail: Melinda.M.Pacheco@wellsfargo.com
Melinda Pacheco
Chia Rodeski: Office: 408-409-1413 E-mail: clrodeski@gmail.com
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