City of Palo Alto Below Market Rate Homeownership Program

What is City of Palo Alto Below Market Rate Homeownership Program?

City of Palo Alto Below Market Rate Homeownership Program is a shared-appreciation loan for homebuyers in Palo Alto, California.

• Below Market Rate (BMR) homeownership program offering below-market priced homes with equity-sharing restrictions. Requires city resale controls in perpetuity.
• shared equity with provider at resale.
• Funding comes from In-lieu fees / Inclusionary.

Do you have to pay it back?

City of Palo Alto Below Market Rate Homeownership Program is a shared-appreciation loan and is repaid under the terms set by the administering agency.

• Repayment is triggered by Sale or transfer.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Palo Alto Below Market Rate Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Palo Alto Below Market Rate Homeownership Program limits household income to 120% of the area median income, which varies by county and household size.

• Low to moderate income: household income ≤120% AMI.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Palo Alto Below Market Rate Homeownership Program caps the purchase price as follows: Contact program for current purchase price limits.

• Eligible property types include Single-family (1-2 unit), conventional condominium, townhome, PUD.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

City of Palo Alto Below Market Rate Homeownership Program serves buyers purchasing in Palo Alto, California.

How do you apply?

Applications for City of Palo Alto Below Market Rate Homeownership Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Contact provider directly; subject to funding availability, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.