The Financing Program helps first time home buyers purchase a single-family house, townhome, or condominium located in the City of Santa Clara. A first mortgage will be provided to eligible, qualified buyers through First Horizon Home Loans, or Neighborhood Housing Services Silicon Valley, Inc., utilizing California Housing Finance Agency (CalHFA) as a primary lender.

The City will provide a second mortgage to "bridge the gap" between the maximum loan amount available through CalHFA and the actual purchase price of the home. Second mortgages will be provided on a first-come first-served basis subject to availability of funds.

Participants in the Program will be required to attend Home Buyer Training. This training, conducted by Neighborhood Housing Services, will educate you in many aspects of home buying and homeownership.

• People who have not owned a home in the last three years.
• People whose annual household income is no greater than 120% of the County's median income (as calculated based on your household size).
• Families who live and/or work in the City of Santa Clara will be given priority.
  

• The maximum City second mortgage is $75,000.
• The first mortgage issued by First Horizon Home Loans, or Neighborhood Housing Services will be based on your annual income and CalHFA standard underwriting criteria.

The home buyer is required to make a minimum down payment of 3% of the home's purchase price. For example, you must make a minimum down payment of at least $12,000 for the purchase of a $400,000 home. In certain cases, a higher down payment may be necessary.

The first mortgages provided by First Horizon Home Loans, or Neighborhood Housing Services will have a standard fixed interest rate, competitive to the current market rate. The interest rate will be based on CalHFA’s published rates. Please contact Sara Wildey (First Horizon Home Loans) at (650) 559-5562, or Neighborhood Housing Services at (408) 279-2600 for information about the CalHFA financing.

The borrower will be responsible for direct, out-of-pocket expenses, including closing and title costs.

The City’s second mortgage will be a 20-year loan issued by Neighborhood Housing Services, structured in the following way:

• For the first 5 years, the City’s loan will be zero percent interest with no payments;
• Starting the sixth year through the twentieth year, the City loan converts to the interest rate of the primary loan, and monthly amortized payments of principal and interest are paid.
  

Call Sara Wildey (First Horizon Home Loans) at (650) 559-5562, or Neighborhood Housing Services at (408) 279-2600 for more information and to apply for a loan. Then, go out and look for your starter dream home!