Assistance program launched for home buyers

·2 min read

Jun. 23—Tri Counties Bank announced on Wednesday that in partnership with the National Asian American Coalition (NAAC), a program will launch in July that will help low- and moderate-income home buyers with down payments on home purchases.

Set to launch on July 7, the Down Payment Assistance (DPA) program is intended to assist qualifying low- to moderate-income home buyers, with a focus on underserved communities.

The program will be coordinated through the NAAC with Tri Counties Bank offering mortgage loan financing to borrowers. The bank also said it is providing financial support to the NAAC.

In a statement, Tri Counties Bank said qualifying home buyers can receive a forgivable loan of up to 3% of the price of the home (with $10,000 maximum) for down payment assistance. First-time home buyers may also be eligible for additional down payment assistance from Tri Counties Bank through the Federal Home Loan Bank of San Francisco's WISH program that provides up to $22,000 for a down payment.

"Tri Counties Bank is pleased to partner with the NAAC and bring this program to fruition," Rick Smith, president and CEO of Tri Counties Bank, said in a statement. "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."

The program will be available through the NAAC to home buyers in Tri Counties Bank's Community Reinvestment Act (CRA) assessment areas. Participants also must meet income requirements and qualify for a first mortgage through Tri Counties Bank.

The down payment assistance loan can be forgiven if the home is not sold, given away or otherwise conveyed or refinanced within five years of the mortgage closing date, the bank said. Otherwise, the loan will be recovered pro rata by the NAAC at 20% per year and used for future DPA Program loans.

"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 NAAC, said. "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."

Interested home buyers can contact the NAAC regarding the DPA program at 650-952-0522 or www.NAAC.org.