Closing Cost Assistance Program (aka CCAP)

by on October 3, 2011

Recently I have attended a couple of educational programs sponsored by the Housing Trust of Santa Clara Valley. The Housing Trust has 3 wonderful programs available for both the first-time home buyer or someone who has owned property in the Santa Clara Valley recently.

The first one I want to introduce you to is the Closing Cost Assistance Program (aka CCAP). This program is available for first-time home buyers with a 620 credit score or higher.

Here are some of the highlights of this program:

  • Deferred loan of 3% of the purchase price up to $15,000 for the down payment and/or closing costs.
  • 3% simple interest rate loan due upon the sale of the home, a refinance or at the end of 30 years, whichever comes first.
  • No interest or principle payments due during the term of the loan
  • For first-time home buyers who have not owned a home in the Santa Clara County during the last three years
  • A minimum of 3% contribution from the borrower is required

As you can see, one of the great things about this program is that you do not have to make any payments on this loan on a monthly basis. This can be a great help for the first-time home buyer.

There are maximum income limits which I will be more than happy to go over with you in person if this is a loan program that you are interested in.

You are only allowed to do one of the programs with the Housing Trust of Santa Clara County, which is a recognized 501 (c)(3) nonprofit community lender funded by contributions from local companies, individuals and government entities. However, you can do a thing called layering, wherein you might use one program sponsored by the City of San Jose, such as the San Jose Dream Home program, another sponsored by the State of California and one by the Housing Trust so that you are able to do all that you can to get your payments down as low as possible.

For information on any of these programs, feel free to call me at 408-839-2125. I’ll be happy to answer any questions you might have about how these programs can work for you.

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