3/22/2019 - Immediate Release
Ready to buy your first home? Alameda County can give your down payment a BOOST!
Announcing AC Boost, Alameda County’s NEW Down Payment Assistance Program. AC Boost provides financial assistance to middle-income working households to purchase a home in Alameda County. The program offers shared appreciation loans of up to $150,000 to first-time homebuyers who live in, work in, or have been displaced from Alameda County.
America's Home Loans has extensively surveyed the market to identify lenders approved for this program that have the best rates, fastest turn-times, and most flexibilities. Schedule a free consultaiton now.
The deadline to apply is about one month away, get preapproved today so you're ready. It's a given that there will be a rush of folks at the last minute, and some will not have what they need in time. Don't be one of those, call 415-846-9211 today and ask for Chris.
The funds are made available in the form of a "shared appreication" loan. Example math. Suppose the program funds $100,000 of your $650,000 home purchase, or 15.4%. Further suppose that when you go to sell the home, it sells for $950,000. It appreciated by $300,000. You would have to repay the initial $100,000 in addition to $300,000 x 15.4% = $46,200. These funds will then be made available to the next first time homebuyer family -- essentially, you are "paying it forward." The remainder of the appreciation ($250,000 or so, less taxes and other closing costs) is yours to keep.
How does this government program compare to for profit shared appreciation programs? That's a great question. The largest for-profit company doing something like this in the SF Bay Area is Unison. The below was taken directly from their website as of this publishing. Instead of their return being 1-to-1 a percentage of what they invested, it is approximately 4-to-1 according to their website. We refer to agreements like this as "equity harvesting schemes."
In that same scenario, with our program through Alameda County investing 10% towards your purchase, the program's share of the return would only be 10% of your home's future appreicaiton - not 40%!
You don't need to save up 20% down to buy a house, but the best part of this program is that the program funds still count towards the financial benefits of that magical 20% down number!
Realtors, your training to be able to offer this program is coming up on Monday April 1st in the morning, shoot me an email for details - firstname.lastname@example.org. More information here and here.
How is AC Boost funded? On November 8, 2016, voters approved Measure A1, a $580,000,000 general obligation bond designed for programs expanding affordable housing in Alameda County. This included $50,000,000 for down payment assistance. That works out to only about 400 families this year that will be able to use this program -- reach out immediately to get on that list.
Available in all of Alameda County, including Oakland, Hayward, and the rest!