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Bay Area Affordable Homeownership Alliance

To learn more about the next steps you should take to access the valuable resources and services made available through AHOP, make certain to attend an AHOP homebuyer education.

The February 8th Seminar is FULL


Please click here to be notified about the next available seminar.  It is not mandatory to attend the workshop; however, we highly recommend that you attend to learn about the guidelines, parameters, and steps you will need to take to become an AHOP homebuyer participant.

AHOP Antioch Home Ownership Program

Subsidies with AHOP

Informational Workshop

AHOP Closing Cost Loan Program (CCLP)

CCLP Objectives
AHOP CCLP loans are provided to assist you with your non-recurring closing costs.  Non-recurring closing costs include unique one-time costs related to purchase of your home.  The purpose of the CCLP is to assist you to have enough funds to close your purchase transaction.

CCLP Eligibility Rquirements
AHOP CCLP has the exact same eligibility requirements as the AHOP DALP.  


 Homeownership in Antioch is just AHOP, skip, and jump away!


CCLP Mechanics:Loan Amount
The CCLP loan amount is capped at 3% of your purchase price or $12,000; whichever is less.  The CCLP can never exceed the actual amount your non-recurring one time closing costs.

CCLP Mechanics:Term and Repayment
The AHOP DALP is a differed loan that you pay back when any one of the following events has occurred: 
Five (5) year term – the full loan balance and any shared appreciation is forgiven after five years.
Transfer title to another person – either by selling or bequeathing (gift or inheritance) your property to someone else.  Renting the property is considered to be a transfer of title.  Accordingly the loan is due and payable in full if the property is rented.  
There is a default on your loan or property
Refinanced the property without consent of the City
Refinance the property with the consent of the City and pay back the City their loan amount and portion of shared appreciation

CCLP Mechanics:Shared Appreciation
The City will require a repayment of the total loan amount and shared appreciation (see above discussion regarding shared appreciation) if any of the above discussed conditions occurs prior to the five year maturity date of your CCLP loan.


Additional Homebuyer Assistance Subsidies
The City and BAAHA highly encourage the use of and, in some cases, may require that additional subsidies be combined with the AHOP DALP. Any form of subsidy applied in addition to the AHOP DALP may not be in a superior position to the AHOP DALP. Only the first mortgage lender can be in a superior position. A subsidy that falls within these requirements is the Federal Home Loan Bank WISH Program.

Federal Home Loan Bank WISH
The WISH Program is a forgivable loan subsidy which provides up to $22,000 in down payment

assistance. Below are the main provisions related to securing assistance from the WISH Program:​

  • This loan has a five year term.
  • The loan is forgiven on a prorated basis over a five year period.
  • You must maintain owner occupancy of your home during the five year term.
  • You must make a minimum of a $5,000 contribution into the purchase transaction to obtain the $22,000 subsidy.
  • You will need to pay the outstanding balance on your loan if you try to take cash out through a refinance – prior to the five year term.
  • The WISH loan qualifying parameters are very similar to AHOP DALP’s parameters.


Contra Costa Mortgage Credit Certificate Program (MCC)
The Contra Costa MCC Program provides first time homebuyers the ability to increase the amount of tax savings they can access from home ownership.  The MCC is a tax credit that reduces your Federal tax bill. The MCC allows up to 20% of the interest you pay on your mortgage to be applied directly against your annual Federal tax bill.  The lender that you work with must be approved with Contra Costa County to provide you access to the MCC. The County does occasionally run out of MCC allocations. To get more information on Contra Costa County’s MCC Program, click here.


AHOP DALP & CCLP Funding Example
The following funding example is for illustration purposes only.  The numbers provided in the illustration will not match the actual dollar amounts applied in purchasing your home.  Every homebuyer’s transaction will produce different financial results.  Financial implications, requirements, and outcomes will vary based on many factors, including and not limited to: your personal financial situation, the lender and other professional services you use, and the terms of your purchase transaction.

Program Application

Homebuyer Education

​All AHOP participants will be required to have a certificate of completion for a six hour HUD certified homebuyer education course prior to submitting an AHOP application to BAAHA.  The City of Antioch is scheduling to conduct its first HUD homebuyer education workshop sometime in February. 


Please make certain to register with BAAHA to receive updates on upcoming homebuyer education seminars AHOP participants may secure a Homebuyer Education Certificate of completion from any HUD approved organization. A list of such organizations can be obtained at BAAHA’s website: http://www.myhomegateway.org/hud-certified-counseling-agencies.html 
or from HUD’s website located at: https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA

AHOP applicants must complete a HUD certified education course and provide a copy of their HUD Homebuyer Education Certificate at the time they submit their Program Application. 


AHOP applications will be made available on the BAAHA website after the first AHOP Homebuyer Education Seminar is conducted – to be scheduled in May of 2020 

 What are my next steps to participate in AHOP?​​

Need More Information or Assistance?

Visit www.myhomegateway.org/AHOP to learn more about how to take access the resources and services that AHOP offers homebuyers, and to view upcoming AHOP HUD certified homebuyer seminars, please. The most effective way to get answers to your questions is to email us at AHOP@myhomegateway.com. Alternatively, you can call us at (800) 480-9020 x 556.

Overview

There are two types of subsidies that are available to AHOP participants.  Both of these subsidies can be obtained either individually or together.

  • AHOP Down Payment Assistance Loan Program – AHOP DALP
  • AHOP Closing Cost Loan Program – AHOP CCLP

The AHOP DALP and CCLP are not grants, they are loan programs in which City lends money to homebuyers. The DALP will always have to be repaid; versus the CCLP will have a period in which the loan will be forgiven over a five year period. Funds for the DALP and CCLP are being provided directly through the City of Antioch.


AHOP Downpayment Assistance Loan Program (DALP)

DALP Objectives
AHOP DALP loans are provided as an addition to your down payment. The purpose of the DALP is to achieve one or a combination of the following objectives:

  • Decrease your monthly home ownership costs by:
    • Decreasing the dollar amount of your first mortgage loan – loan payments on the DALP are differed for the life of the loan. Accordingly, the DALP contribution is treated as though it is a cash contribution by the first mortgage lender.
    • Decreasing the cost of mortgage insurance – the cost of mortgage insurance decreases as the amount of the first mortgage loan on the home gets closer to representing 80% (or less) of the purchase price. Mortgage insurance is eliminated if the first loan amount is equal to or less than 80% of the purchase price. 
  • Increase your purchase capacity – the decrease in housing costs will help increase your purchase price capacity.



DALP Mechanics: Loan Amount
The City and BAAHA would like to maximize on the number of first time homebuyers that can

take advantage of the AHOP DALP.  Accordingly the City will only lend the minimum amount

required to help a homebuyer meet the “maximum” financial allowances to purchase a home. 

Maximum financial allowance generally means that the first lender has provided the maximum

loan amount they can to purchase your home. The City will be setting a minimum housing ratio

of 35% and a maximum back (and/or housing) ratio of 45%. Housing ratio is the calculation

that divides the total cost of your monthly principal, interest, insurance (and/or home owners

association dues), and taxes by the gross monthly income your household earns. Your back ratio adds in the monthly amount you are paying on all your personal debt on top of your housing costs.

The City has a strong preference to cap the DALP AHOP loan amount to $35,000. Homebuyers that need a greater subsidy may need to secure additional financing (when and if it is available) from other subsidies, including the Federal Home Loan Bank WISH Funds.  WISH Funds may provide up to an additional $22,000 in subsidy. You will need to work with a lender that can provide you access to WISH funds.

DALP Mechanics: Down Payment
The minimum down payment amount required by the City is $5,000 or 1% of the purchase price; whichever is greater.  You must work with a lender that will provide you a competitive conventional thirty year fixed rate loan that is in line with your down payment capacity. 

DALP Mechanics: Term and Repayment
The AHOP DALP is a differed loan that you pay back when any one of the following events has occurred:

  • Forty five (45) year term – the full loan balance and shared appreciation is due and payable after 45 years.
  • Transfer title to another person – either by selling or bequeathing (gift or inheritance) your property to someone else.  Renting the property is considered to be a transfer of title.  Accordingly the loan is due and payable in full if the property is rented. 
  • There is a default on your loan or property
  • Refinanced the property without consent of the City
  • Refinance the property with the consent of the City and pay back the City their loan amount and portion of shared appreciation at the time of the refinance (cash out refinance).



DALP Mechanics: Shared Appreciation
The City has built in a repayment mechanism into AHOP DALP that minimizes your financial burden and helps perpetuate future eligible households to take advantage of the AHOP DALP.

You will need to pay back the City a portion of your profit when any of the above referenced repayment situations occur. The profit you pay back will be based on shared appreciation. Shared appreciation is calculated by taking the percentage of City’s AHOP DALP contribution in relation to the purchase price of the property.  For example, if you received $35,000 from the AHOP DALP to purchase a $350,000 home, you will need to pay back 10% of any shared appreciation you realized when you pay back your DALP loan. If at the time of repayment, your home was sold or appraised to $400,000, then your gross appreciation in property value would be $50,000.  You would need to pay back 10% of $50,000, equaling $5,000 in shared appreciation. Your total payback would be the original loan amount of $35,000 plus $5,000 in shared appreciation, for a total of $40,000. Please see the example below.