Emeryville Down Payment Assistance and First-Time Homebuyer Programs

Just north of Oakland, Emeryville is a hidden gem of the Bay Area. Emeryville packs a punch with its vibrant arts scene, diverse dining options, and proximity to outdoor recreational areas such as the Bay Trail and nearby parks. The city’s transformation from an industrial hub to a modern, mixed-use community has attracted young professionals and families alike, seeking a blend of urban amenities and a laid-back lifestyle. Emeryville’s thriving job market, particularly in industries like biotech, technology, and green energy, adds to its appeal, making it a sought-after destination for those looking for a dynamic yet accessible place to live, especially with these down payment assistance programs.

Down payment assistance programs in Emeryville

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

Emeryville First Time Homebuyer Loan Program

Emeryville’s First Time Homebuyer Loan Program aims to keep residents out of the rental trap by providing an opportunity to conveniently pay the high upfront costs of buying a home. This program provides downpayment assistance to households at or below the City’s moderate income.

Assistance type: Low-interest rate, deferred payment loan

Sponsor: City of Emeryville

Assistance amount: 75% of the first mortgage’s rate, or 5% – whichever is less.

Purchase price limit: None

Minimum borrower contribution: 3% of the downpayment

Eligibility requirements

• Applicants must be first-time homebuyers who have not owned a home in California within the last three years. However, there are some exceptions to this requirement.
• Applicants’ total household income must fall within 120% of the area median unless one of the buyers in the household is an employee of the City of Emeryville.
• Any home being purchased must serve as the applicant’s primary residence.

Statewide down payment assistance programs available in Emeryville

CALHFA Homeownership Program

The California Housing Finance Agency (CALHFA) provides assistance programs for low- and moderate-income first-time homebuyers to help with down payments and closing costs. The program offers several options, like the MyHome Assistance Program, which offers deferred FHA loans of up to 3.5% of the purchase price. CALHFA assistance can also be used alongside the Dream For All Conventional first mortgage.

Assistance type: Deferred payment loan

Sponsor: CALHFA

Assistance amount: 3.5% of the purchase price for FHA loans and 3% for conventional loans

Minimum borrower contribution: None

Eligibility requirements

• Applicants must meet the credit requirements, CALHFA income limits, and loan requirements set by an approved lender and mortgage insurer.
• The property you purchase must be your primary residence.
• Applicants must complete Homebuyer Education Counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.

GSFA DownPayment Assistance Program

The Golden State Finance Authority Downpayment Assistance programs are assistance loans that help homebuyers with the down payment and closing costs on the purchase or refinance of a primary residence in California. GSFA offers platinum and golden assistance opportunities to help you purchase a home sooner than you thought possible. This loan option can be combined with the Mortgage Credit Certificate tax credit.

Assistance type: Deferred forgivable loan, Second mortgage

Sponsor: Golden State Finance Authority

Assistance amount: Financial assistance up to 5.5% of the First Mortgage Loan amount

Minimum borrower contribution: None

Eligibility requirements

• Financial assistance up to 5.5% of the First Mortgage Loan Amount
• FICO scores as low as 640 can qualify, and DTIs up to 50% are allowed in some circumstances.
• Various First Mortgage Loan types are available to fit the homebuyer’s needs, including FHA, VA, USDA, and conventional financing.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.