The City of San Carlos is providing a Downpayment Assistance Loan Program (DAL) to assist low and moderate-income first-time homebuyers with the purchase of a home in San Carlos.

Program Highlights

• The maximum loan is $55,000. (recorded as a 2nd deed of trust)
• The term of the loan is 30 years.
• The interest rate is 3%.
• Payments are deferred for the first 5 years, but interest will accrue during the deferral period.
• Homes must be purchased within San Carlos city limits.
• There is No maximum purchase price.
• The home may be new or existing and must remain owner occupied for the term of the City's loan.
• The home may be a single-family residence, a condominium or a townhouse (duplexes and other multi-family dwellings are not eligible).

Eligibility

• Applicant(s) must be a resident of or work in San Carlos for a minimum of 1 year prior to applying for the DAL program.
• Applicant(s) must be first-time homebuyers (they may not have owned a home, as a principle residence, within 3 years prior to the date of application).
• Cash and cash equivalent assets may not exceed $125,000, including the down payment that will be used to purchase the home and applicant(s) cannot own other real property.
• Applicant(s) must have sufficient assets to provide a down payment of at least 5% of the purchase price of the home and must be able to pay applicable closing costs.
• The home must remain owner-occupied for the term of the City's loan.
• Gross annual household income cannot exceed 120% of the median San Mateo county income, adjusted for household size:

Maximum Income by Household Size
1	$79,800	5	$ 123,100
2	$91,200	6	$132,250
3	$102,600	7	$141,350
4	$114,000	8	$150,500

Repayment Options

• The loan will become due on sale, transfer of title, conversion to rental property or failure to comply with DAL program rules.
• There are no payments due on this loan for the first 5 years, however, interest will accrue during this period of time.
• Payments will commence in the 6th year and are fully amortized over the remaining 25 years.

Example:

Original Loan	$ 55,000
Accrued Interest (first 5 yrs)	$ 8,760
Starting Loan Balance (year 6)	$ 63,760
Monthly Payments	$ 302.36

Application Process

1. Submit the DAL application package to San Mateo County for eligibility review.

2. County will review application and advise applicant of eligibility status.

3. Eligible applicant then purchases a home in San Carlos and obtains a 1st Mortgage Loan.

4. First Mortgage Lender submits loan approval packet, along with $300 application fee, to San Mateo County for underwriting.

5. County submits final loan package to the city's Loan Committee for review and approval.

6. When the City's loan is approved, applicant(s) sign all applicable loan documents and loan closing is completed.

How to Apply

The DAL Application and Document Checklist may be downloaded and printed from the links below. Applications may also be obtained by calling the San Mateo County Office of Housing at (650) 802-5033 or the City of San Carlos Redevelopment Agency at (650) 802-4263. Applications may also be picked up at City Hall, 600 Elm Street, San Carlos.

• DAL Program Checklist (Acrobat Format)
• DAL Application Form (Acrobat Format)