Affordable Housing

Mortgage Debt Relief Update

President Obama signed the American Taxpayers Relief Act into law last Wednesday.

"The bill includes a provision to extend the Mortgage Forgiveness Debt Relief Act, which will for one more year exempt the taxation of mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale or loan modification (including any principal reduction).  While debt relief has been extended at the federal level, the California exemption expired at the end of 2012, so forgiven mortgage debt is considered taxable state income for now. C.A.R is sponsoring SB 30 (Calderon, D-Montebello).  SB 30 will conform state law to the federal law passed last week.  Upon passage of SB 30, the measure will be effective retroactive to Jan. 1, 2013." -California Association of Realtors (C.A.R)

Time to take this on at the state level! Let your local representative know that they need to support this and protect the interest of both home buyers and sellers in the Bay Area.

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.

Neighborhood Stabalization Program

The NSP program provided HUD funds to Cities and Counties around the State to use in cooperation with non-profit developers. The developers used the funds to buy discount foreclosed homes direct from banks and rehab them for sale to moderate income home buyers for owner occupancy.  

The NSP program works to provide nice, affordable single family homes in Alameda and Contra Costa Counties, and helps neighborhoods turn vacant often blighted foreclosures into owner occupied communities.

The NSP program homes can be a great alternative to owning a Below Market Rate (BMR) home.

For more information on NSP program income limits, locating NSP homes, or the qualification process you can click the links below: 

Alameda County NSP For-Sale Program Information for available NSP Homes in the neighborhoods you are looking

Contact me here with questions.

Hayward NSP Home After Photo

Hayward NSP Home After Photo