NeighborWorks Sacramento - Down Payment Assistance

What is NeighborWorks Sacramento - Down Payment Assistance?

NeighborWorks Sacramento - Down Payment Assistance is a deferred second loan for homebuyers in Sacramento County, California.

• Down payment assistance loans and home loans for individuals/families with low to very low incomes in the Sacramento region. Also provides homebuyer education for city programs (Elk Grove, West Sacramento). Makes homeownership more affordable.
• no monthly payments on DPA.
• Funding comes from Non-profit / Federal CalHome.

Do you have to pay it back?

NeighborWorks Sacramento - Down Payment 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, transfer, or non-occupancy.
• 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?

NeighborWorks Sacramento - Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

NeighborWorks Sacramento - Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

• Low income: household income ≤80% of Area Median Income (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?

NeighborWorks Sacramento - Down Payment Assistance caps the purchase price as follows: Contact program for current purchase price limits.

• Eligible property types include Single-family (1-4 unit), FHA-approved condominium, townhome/PUD.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

NeighborWorks Sacramento - Down Payment Assistance serves buyers purchasing in Sacramento County, California.

How do you apply?

Applications for NeighborWorks Sacramento - Down Payment 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.