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Down Payment Assistance Program About the Program The City's Down Payment Assistance Pro- gram provides 3"k partially-deterred loans to applicants earning low to moderate income as shown on the table below. Partially deferred means that the City splits the loan in two so that the home buyer pays on only part of the loan at a time. Fur example, on a $=10,000 loan, the home buyer would make payments on half of the loan ($20,000) for the first 10 years and then make payments on the second halF starting in the I llh year. At 39c interest, the monthly payment for this $40,000 loan would be approximately $193. Purchase Qualifications Homes purchased through the program must he existing single family residences located within the current city limits of the City of Pleasanton. Homes purchased in other cities or in the unincorporated areas within or surrounding the City of Pleasanton do not yualify for the program. In addition, to be eligible for the program you must have sufttcient credit worthiness to yualify. First mortgages must be fixed rate loans with no negative amortization, balloon payments or adjustahle rate features. Maximum Income Levels and Loan Amounts The limits' are adjusted for houselwld size ns suuunari~ed fieiost~: (F%(ectire ddarch 2006) Household Size (Persons) Annual Income Homes purchased may be single family residences, condominiums, townhouses, and single units that are part of a coaplet or duet. Multi-uniC structures (duplexes, triplexes etc.) where more than one unit is being purchased are not eligible. There is no cap on the purchase price of the home. I $46,950 $70,300 2 $53,650 $80,450 Total down payment 3 $60,350 $9Q,$QO assistance is limited to 20%r of the purchase price 4 $67,050 .$100,550 of the home. 5 $72,400 $108,600 Loan Applicants must occupy Amount the home purchased under Up to: $60,000 $40,000 this program as their primary residence. ~~~~~ Loan Qualifications To qualify for assistance participants must: • Contribute funds in an amount equal to a minimum of 3% of purchase price for use as a down payment. • Qualify for your first mortgage with a lending institution. Prior to receiving funds, approved program participants must enter into a loan agreement with the City of Pleasanton covering the total amount of funds lent by the City. A promissory note between the buyer and the City outlining loan terms shall be executed along with a deed of trust with resale t'esttictions. Applicants who currently line and/or- work in Pleasanton shell be given priority over ather crppiicattts.