Empower Homebuyers SCC makes purchasing first home a little easier

Silicon Valley’s high housing prices may become a bit more palatable to some first-time homebuyers, following the rollout Monday of a new $25 million program intended to help them afford a down payment.

Empower Homebuyers SCC, organized by Housing Trust Silicon Valley and Santa Clara County, is expected to provide loans to help about 250 individuals and families buy homes in the county over the next five years.

To qualify, applicants must contribute 3 percent of the price of the home they intend to purchase, and the Empower program will contribute 17 percent — totaling a 20 percent down payment. In the past, the San Jose-based nonprofit Housing Trust Silicon Valley has issued grants and loans for just 10 percent of a home’s value — leaving families to come up with the other half of the down payment themselves.

Offering larger loans, and reducing the amount families must pay, is key in helping them become homeowners, said Adria Quinones-Masur, director of homebuyer programs for Housing Trust Silicon Valley.

“This is really going to help a lot of first-time homebuyers out there,” she said.

The median sale price of a home in Santa Clara County is $1.17 million, according to Zillow.

Empower Homebuyers applicants must make $105,200 a year or less to qualify for down payment assistance if they are single. For a family of four, the limit is $150,250. The money can go toward homes with a purchase price of up to $800,000.

Applicants selected to participate in the program will receive a 30-year loan. They won’t have to make monthly payments on the Empower Homebuyers loan, but will be required to pay off the loan plus a share of their home’s appreciation after 30 years or when they sell, move out of or refinance the home.

Empower Homebuyers SCC is funded by Measure A, the $950 million affordable housing bond Santa Clara County voters approved in 2016.

To learn more or apply for down payment assistance through Empower Homebuyers SCC, go to bit.ly/EmpowerHomebuyersSCC.