Mark Sawicki Economic Development and Housing Manager 600 Elm Street San Carlos, CA 94070 Phone: (650) 802-4263
Downpayment Assistance Loan Program (DAL)
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 amount is $55,000. The actual loan amount will be the amount necessary to bridge the gap between the purchase price of the home (less the downpayment) and the amount of the first mortgage loan. The first mortgage loan shall be calculated in conformance with Health and Safety Code Section 50052.5, so that the home is available to the applicant at an affordable housing cost.
The term of the loan is 30 years.
The interest rate of the loan is 3%. Payments are deferred for the term of the loan.
The home to be purchased must be within the city limits of the City of San Carlos.
There is no set 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 first-time homebuyers, which means that an applicant may not have owned a home, as a principal residence, during the 3 year period prior to applying to the DAL Program.
Applicant(s) may have no more than $125,000 in cash and cash equivalent assets, including the downpayment that will be used to purchase the home.
Applicant(s) must have sufficient assets to provide a downpayment of at least 5% of the purchase price of the home as well as applicable closing costs.
The home must remain owner-occupied for the term of the City's loan.
Homeowners of units other than a Below Market Rate unit and/or any unit subject to a resale restriction agreement will be required to pay shared appreciation on the DAL Program loan (as described further below).
The applicant’s gross annual household income cannot exceed 120% of the median income for San Mateo County, adjusted for household size for the applicable calendar year.
Maximum Income by Household Size
1
$81,300
5
$125,450
2
$92,900
6
$134,750
3
$104,550
7
$144,050
4
$116,150
8
$153,300
Repayment Options
The DAL Program loan will become due on sale, transfer of title, conversion to rental property, prepayment of the loan or failure to comply with DAL Program rules.
In addition to the repayment of principal and accrued interest at the time the DAL Program loan is due, if the unit is not a Below Market Rate unit or otherwise subject to a resale restriction agreement, the homeowner will be required to pay to the Agency a share of the appreciation of the home. The Agency will receive the portion of the net appreciation equal to the percentage of the purchase price of the home financed by the DAL Program loan. For example, if the DAL Program loan equals 20% of the purchase price of the home, the Agency would be owed 20% of the net appreciation of the home.
Net appreciation is calculated by subtracting from the gross appreciation of the home (1) the homeowner’s applicable closing costs in connection with a sale of the home, (2) the homeowner’s cash contribution in the original purchase transaction, and (3) the documented value of capital improvements made by the homeowner. The gross appreciation of the home is the entire increase in the home’s value since its purchase.
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.
