SAN MATEO, CALIFORNIA - AUGUST 22: A for sale sign hangs in front of a home on August 22, 2023 in San Mateo County, California. (Photo by Liu Guanguan/China News Service/VCG via Getty Images)
WALNUT CREEK, Calif. - One city in the East Bay has a rare opportunity for homebuyers to purchase their first home at a price far below average Bay Area listing prices.
Households with at least three to four people that meet "very low" to "low" income requirements may qualify to enter Walnut Creek's below-market rate homeownership program.
3 and 4-bedroom homes in Walnut Creek
Big picture view:
The newly constructed homes are more than 2,000 square-feet in size and have three to four bedrooms. The cost of each home ranges from $262,750 to $377,000, according to the city.
The city's program is run by the nonprofit Bay Area Affordable Homeownership Alliance in partnership with the Community Housing Development Corporation and Mechanics Bank. The bank will provide additional down payment assistance subsidies and a loan subsidy to qualified buyers.
There will be three homes up for grabs, each with a home value estimated at $1.2 million to $1.5 million.
Below-market pricing
Dig deeper:
One of the properties is a two-story, four-bedroom home in the city's Abigail development, upwards of 2,500 square-feet with an open-concept floor plan, walk-in closet in the primary bedroom and a landscaped backyard.
This particular home will be sold at a below-market rate of $262,750, and is available to buyers who meet "very low" income qualifications.
The average home in Walnut Creek is valued at over $992,000, according to recent Zillow data – more than three times the price of this below-market home.
The homeownership alliance and the city will hold a virtual informational workshop on Oct. 21 for prospective buyers. To register, click here.
The two other below-market homes will be available to applicants who meet "low" income requirements. These homes will be in the city's Enclave development and will be part of a separate lottery.
These two homes will be priced in the mid-$300,000s.
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Application requirements
What you can do:
While the homeownership opportunity is appealing to many Bay Area residents – applicants must meet a series of specific requirements.
Applicants must be:
A first-time homebuyer, meaning all members of your household must have not owned a home in the last three years.
Meet income requirements based on household size, depending on which home you're applying for.
For the Abigail home, applicants must meet the "very low" income requirements.
- Household size: 4 – $81,400
- Household size: 5 – $87,900
- Household size: 6 – $94,425
- Household size: 7 – $100,925
- Household size: 8 – $107,450
The two other below-market homes will be available for "low" income applicants.
- Household size: 3 – $122,200
- Household size: 4 – $135,750
- Household size: 5 – $146,650
- Household size: 6 – $157,500
- Household size: 7 – $168,350
- Household size: 8 – $179,200
Applicants must also meet other eligibility requirements, including having a minimum credit score, minimum down payment and minimum debt to income ratio. For a full list, click here.
Homeownership lottery
What's next:
Potential homebuyers must enter a lottery by the due date, Oct. 30.
Walnut Creek's lottery program will give preference to applicants who already live or work in the city.
Once someone purchases one of the below-market homes, the homebuyer must adhere to a series of requirements.
These include: Maintaining the property in "good condition at all times," not renting the property to someone else and occupying the home full-time, meaning at least 10 months per year.
If the homeowner looks to sell the property in the future, the sale must be to a buyer approved by the city. The property is also required to remain a below-market home for 45 years.
The Bay Area Afforable Homeownership Alliance offers first-time homebuyer programs in various Bay Area cities, including Concord, East Palo Alto and Antioch. For more information, click here.
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The Source: Information in this story came from the Bay Area Afforable Homeownership Alliance and the City of Walnut Creek. This story was reported from Oakland, Calif.