City of Santa Monica Below Market Rate Homeownership Assistance

What is City of Santa Monica Below Market Rate Homeownership Assistance?

City of Santa Monica Below Market Rate Homeownership Assistance is a deferred second loan for homebuyers in Santa Monica, California.

• Below-market rate ownership and down payment assistance for first-time homebuyers in Santa Monica. Restricted resale covenant, 0% interest deferred loan.
• Up to $200,000 in assistance.
• no monthly payments on DPA.
• Funding comes from Inclusionary/In-lieu fees.

Do you have to pay it back?

City of Santa Monica Below Market Rate Homeownership Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• 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 Santa Monica Below Market Rate Homeownership Assistance 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 Santa Monica Below Market Rate Homeownership Assistance 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 Santa Monica Below Market Rate Homeownership Assistance caps the purchase price as follows: Conforms to FHA/conventional loan limits for this county; contact program for current 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 Santa Monica Below Market Rate Homeownership Assistance serves buyers purchasing in Santa Monica, California.

How do you apply?

Applications for City of Santa Monica Below Market Rate Homeownership Assistance 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.