It’s like finding buried treasure. Okay, maybe we’re overstating things a bit but with many people searching for that extra financial assistance to get them into a home, we’ve uncovered a small pot of gold. It’s more like a pot of down payment assistance.
One of our connections at the at the City of San Jose and another at KB Homes tipped us off to a new Homebuyer Program at Monte Vista which offers a City of San Jose down payment assistance loan for the condominium and townhome units. The funds from a private lender, other programs, and the household will be used to finance the remainder of the purchase price.
The program called BEGIN (Building Equity and Growth in Neighborhoods) will offer a loan up to 20% of the sale price (with a maximum sales price of 95% of the Average Area purchase price, currently set at $712,000).
The BEGIN Loan gets funding from Proposition 1C funds. The California voters approved Prop 1C, commonly known as The Housing & Emergency Shelter Trust Fund Act of 2006, in November of 2006. But don’t wait long, the total amount of funding available for Monte Vista caps at $6 Million. An average loan of $75,000 will be offered to 80 borrowers.
It’s not too shabby to get into this program as the BEGIN loan interest rate is set at 3% simple interest, deferred, due in 30 years. In addition to the BEGIN program, we have a great relationship with KB Monte Vista and can get buyers extra upgrades and even lower sales prices.
Of course, people need to qualify for the program we’ve posted the qualifications on our website or you can send us a note and we’ll send you a PDF copy. So with people scrambling too find deals with foreclosures and short sales, perhaps they might take a look at a new construction townhomes.