Tri Counties Bank and the National Asian American Coalition announced Wednesday a down payment assistance program for would-be homebuyers across the Central Valley.
The program, which launches July 7, helps low- to moderate income homebuyers residing in underserved communities, according to a news release from Tri Counties Bank. Qualified applicants can get a forgivable loan comprising as much as 3 percent of the home price, up to $ 10,000.
If a house is not sold, given away or refinanced within five years of the mortgage closing, then the down payment assistance loan can be forgiven, the news release said.
“Our goal is to strengthen and grow our communities, including those that have been underserved, by providing potential low-to-moderate income buyers with the means to achieve the dream of purchasing their first home,” Rick Smith, president and CEO of Tri Counties Bank, said in a news release.
Potential participants must meet income requirements and qualify for a first mortgage through Tri Counties Bank. People must also reside in the Chico-based bank’s Community Reinvestment Act assessment areas, the release noted.
“One of the biggest barriers of first-time homebuyers owning a home is the lack of down payment assistance,” Faith Bautista, president and CEO of the National Asian American Coalition, said in the release. “The Tri Counties Bank DPA Program will help increase homeownership in low-to-moderate income communities, as well as bridge the gap of wealth and income inequality.”
First-time homebuyers can also get additional down payment assistance from Tri Counties Bank through the Federal Home Loan Bank of San Francisco’s WISH program, the release stated.
Interested homebuyers can contact the National Asian American Coalition about the down payment program at 650-952-0522 or visit www.NAAC.org.