This Bay Area city is offering up to $100,000 to help first-time homebuyers

ANTIOCH, Calif. - A new program has been launched in the city of Antioch, offering first-time homebuyers up to $100,000 to help purchase a home.

The Antioch Home Ownership Program (AHOP) is in partnership with the nonprofit Bay Area Affordable Homeownership Alliance (BAAHA) and seeks to improve housing security in the city, while making homeownership more accessible to its residents. 

To be eligible, AHOP loan recipients must fall under the low-income or moderate-income limits defined by the U.S. Department of Housing and Urban Development (HUD).

By the numbers:

In the Contra Costa County city of Antioch, low income is defined as $87,550 for a single person. For a household of four, it’s about $125,000.

A single person making $134,250 falls under the moderate income cap, and for a household of four, the amount is $191,750.  

SEE ALSO: In all Bay Area counties, earning six-figures can still be considered 'low income'

Other eligibility requirements include an application submitted to BAAHA, meeting a FICO credit score of more than 640, and having 3% saved as a down payment.

The subsidy recipients must also be first-time home buyers, although that definition is loose, meaning it requires that no one in the household has owned a home in the past three years prior to submitting an application. 

Homeowner education requirement

Perhaps one of the most critical elements of the program, even before the application is submitted, is undergoing a six-hour HUD home buyer education course.

"This is really important," BAAHA Administrative Director Walter Zhovreboff explained to KTVU. "We’re trying to prevent default and prevent people failing in homeownership… because we want them to be successful, and we also want them to be committed to the process."

Zhovreboff noted that the educational course also provides a clear picture of what is required to be a homeowner, and in some cases, a potential applicant will realize they are not equipped after learning more about the necessary aspects of homeownership.

Applicants must submit a homebuyer education and counseling completion certificate provided by a HUD-approved education provider.

Dig deeper:

Under AHOP, ​the city of Antioch will provide as much as $60,000 of the subsidy.

The money is a loan and is offered with no interest and no payments required for 15 years. 

The principal balance of the loan must be repaid in full along with shared appreciation either at the end of the 15 years, or if the property transfers ownership or title, or the home is refinanced with a cash-out loan. 

"The amount of shared appreciation is established at the time of the home purchase by applying the percentage of the dollar amount of the AHOP loan provided in relation to the purchase price of the property," according to BAAHA. 

So, if a recipient bought a home for $600K and received a loan of $60K from AHOP, then the shared appreciation to be paid back would equal 10%.

After 15 years, the payment price would take whatever the home's profit is at the time the loan is repaid, multiplied by the shared appreciation allocation of 10%. 

The AHOP participant will be required to pay back that amount of the shared appreciation plus the original loan amount of $60K. 

Other funding sources 

Subsidy recipients can receive up to another $40,000 through participating partners.

Those grants do not have to be paid back and are forgiven in their entirety over five years, Zhovreboff noted.

The federal home loan bank WISH program is offering a large portion of that money, a maximum grant amount of about $32,000. WISH is designed for low-and-moderate income individuals and families.

"Aspiring homebuyers need to work with a participating member financial institution for the program to see if they can access the funds," a Federal Home Loan Bank San Francisco official told KTVU. 

To be eligible, a buyer has to put down $7,500 of their money into the transaction, and must themselves live in the home for five years. The homeowner can't rent out the property.

Limited grants

The money is being distributed on a first-come-first-served basis, with only a limited number of loans available. 

Zhovreboff estimated the program would benefit about 15 households.

Big picture view:

The assistance program is the first of its kind in Antioch in recent years.

Last month, KTVU reported about another new Bay Area program for first-time homebuyers, offering residents as much as $200,000 in down payment assistance.

Under the Home Access Program, created by San Jose-based nonprofit Housing Trust Silicon Valley, recipients can get down-payment assistance of up to 40% of the home's purchasing price, at a max of $200,000. 

That program benefits first-time homebuyers in Alameda and Contra Costa counties.

Zhovreboff noted that there is some uncertainty about future federal funding for programs like AHOP, due to the Trump administration's proposed cuts to HUD community block grants.

But he said, at the state level, efforts continue to be made to help residents achieve the dream of homeownership, both through legislation and through increased housing development initiatives.  

"The state of California has made it a big priority to help homebuyers and help expand homeownership in the state," the affordable housing expert said. "They've provided generous funding resources, and as long as they can secure the funding sources, I think the state will stay active."

Zhovreboff highly recommended that those interested in applying to AHOP attend a free informational virtual workshop on Thursday, May 22 at 6 p.m.

A reservation is required, with the deadline to register on Wednesday, May 21, at 7 p.m.

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