The Board of Supervisors on Tuesday approved a new Down Payment Assistance Program that will provide up to 11 home buyers with $50,000 loans. The program is set to launch in February or March.
The loans would go to those earning up to 120% of area median income for Western County ($124,500 for a family of four) and up to 150% in the Truckee area ($187,000 for a family of four). Loans will be for 30 years at 3% simple interest and deferred until the home is sold or the 30-year term is met.
“We know that homeownership remains out of reach for many residents who are the backbone of our community,” said Supervisor Hardy Bullock. “This program is designed to help those who earn too much to qualify for traditional low-income assistance but still struggle to save enough for a down payment in today’s housing market.”
In Western County, the median home price is about $600,000 while in the Truckee area, it’s nearly $900,000.
Under the program, prospective homeowners would get prequalified for a loan from a mortgage lender and then apply for county assistance. The program is modeled after similar programs in the Town of Truckee and Placer County. Nevada County and the Town of Truckee are working to facilitate program layering, which, if approved, would allow applicants in Truckee to apply for assistance from both Nevada County and the Town of Truckee’s program, giving them more down payment buying power. To learn more about the Truckee Home Access Program, visit www.townoftruckee.gov/THAP.
The program is funded with American Rescue Plan Act funds. A supplemental program using CalHOME program income funds is planned to provide an additional six to ten down payment assistance loans to those earning up to 80% of area median income ($91,000 for a family of four).