City of Alameda Down Payment Assistance Program

What is the Alameda Down Payment Assistance (DPA) Program?

It is a second mortgage loan program to assist qualified low-and moderate-income individuals with the purchase of their first home.

What are the maximum income limits and DPA loan amounts?

Households earning at or below 80% of the Area Median Income are eligible for up to an $80,000 loan. Those earning between 81% and 120% of the Area Median Income are eligible for up to a $50,000 loan. For a list of income limits contact me.

Who is eligible for a loan?

Borrower must be a first time homebuyer, which is a household that has not owned a Principal Residence within the past three years. Borrowers must be able to qualify for a first mortgage from a participating lender. Other restrictions apply. 

What homes are eligible for purchase?

Homebuyers may purchase an existing single-family detached home, condominium, or townhouse located anywhere within Alameda City Limits.

What are the loan terms?

  • The loan is a zero-interest, 15-year loan. Loan payments are deferred, with the loan being due at the end of 15 years, or earlier if the house is sold or transferred.
  • Instead of paying interest on the loan, the homebuyer will owe the City a portion of the increased value of the home at the time the loan is paid back. This is called a Shared Appreciation loan. If the loan is repaid within five years, there is no interest or share of the appreciation due and the Homebuyer only has to pay back the principal.
  • A $500 fee is due upon closing of the loan in order to cover a portion of the costs associated with loan processing, review, underwriting, and the preparation on loan documents. In addition the homebuyer will be required to pay a small fee equal to the City’s loan set-up costs. Both fees will be paid with other closing costs through escrow.