Buying your first home in San Jose can feel daunting. With median sales prices hovering around $1.4 million and fierce competition driving bidding wars, many buyers worry they’ll never save enough for that down payment or closing costs. Fortunately, a suite of first-time homebuyer assistance programs—offered by the City of San José, Santa Clara County, and the State of California—can help bridge the affordability gap. In this guide, we’ll cover:
Top local and state programs
Eligibility requirements
How to stack multiple programs
Step-by-step application tips
Next steps with Affinity Mortgage
What it is: A grant up to $80,000 toward down payment and/or closing costs.
Who qualifies: Low- and moderate-income buyers in Santa Clara County (household income limits vary by family size).
Key benefit: 100% forgiven if you remain in your home for five years—no repayment required.
How to apply: Work with an HTSV-approved lender (we at Affinity Mortgage can help).
What it is: A deferred-payment junior loan up to 3.5% of purchase price.
Who qualifies: First-time buyers (no prior ownership in past three years) meeting state income and purchase-price limits.
Key benefit: No monthly payment; repaid only when you sell, refinance, or pay off your first mortgage.
How to apply: Pair with a CalHFA first mortgage through an approved lender.
What it is: A zero-interest, deferred-repayment second mortgage—up to 20% of purchase price (capped at $250,000).
Who qualifies: Buyers purchasing within San José city limits and meeting income thresholds.
Key benefit: No interest, and no payments until sale, refinance, or payoff. Includes mandatory homebuyer counseling.
How to apply: Submit your application to the City’s Housing Department along with your lender’s pre-approval.
What it is: Sliding-scale grants ($10,000–$25,000) to assist with down payment and closing costs.
Who qualifies: Households at or below 120% of Area Median Income purchasing in underserved neighborhoods.
Key benefit: No repayment if you live in the home for at least three years.
How to apply: Coordinate with your lender to include in your closing.
| Program | Max Household Income (120% AMI) | Purchase Price Limit |
|---|---|---|
| HTSV Down Payment Assistance | $165,000 (approx.) | No cap beyond county area |
| CalHFA MyHome | $216,840 (for 4-person household) | $1,149,825 (Santa Clara County) |
| City of San José Program | $165,000 (for 4-person household) | $1,000,000 |
| Neighborhood Lending Program | $198,000 (for 4-person household) | Varies by area |
Note: Income and purchase-price limits are updated annually. Always verify current thresholds before applying.
By combining multiple programs, you can often cover 7–8% down payment with little to no out-of-pocket expense:
CalHFA MyHome (3.5%)
HTSV grant (up to $80K)
City of San José zero-interest second (up to 20%)
Neighborhood Lending (if applicable)
This layered approach not only reduces your initial cash requirement but also strengthens your purchase offer, as sellers see you’ve already secured down-payment funds.
Get pre-qualified with Affinity Mortgage. We’ll determine which programs you qualify for and lock in your preliminary interest rate.
Complete homebuyer education. Most down-payment programs require HUD-certified counseling—often available online or in-person through Project Sentinel or the City.
Apply for assistance. Submit necessary documents (proof of income, asset statements, pre-approval letter) to each program’s administrator.
Finalize your loan. Once grants and second mortgages are approved, we’ll layer those into your closing package alongside your primary FHA or conventional loan.
Close escrow with confidence—knowing you leveraged every available dollar to make your home purchase possible.
High entry costs: Affordability programs help you compete in a market where the average home sells in under 30 days.
Rising rates: Lock in rate and assistance funds early to protect your monthly payment.
Wealth building: Every dollar saved on down payment can be invested in your future equity.
At Affinity Mortgage, we specialize in San Jose first-time buyer programs. Here’s how to get started:
Schedule a free consult: https://caliloanpro.com/book-now
Call or text Chris Johnson: (408) 687-6109
Email: chris_j@ouraffinity.com
Don’t let affordability concerns keep you out of the San Jose market. With the right guidance and assistance, your dream home is within reach!
Published by Chris Johnson, Loan Officer, NMLS #235072, Affinity Mortgage
