FUNDS ARE NO LONGER AVAILABLE — Application Dealine 6/30/2013
Housing Trust Silicon Valley’s Purchase Assistance Loan (PAL) is one of three loan products currently available from the Housing Trust, and is a deferred loan.
Who it Helps
Moderate income homebuyers purchasing foreclosed homes in designated census tracts in San Jose. As shown below, the household income for a single member household cannot exceed $85,100 and the household income for a household of four cannot exceed $121,550. You must live in the home as your primary residence.
How it Helps
The Housing Trust’s Purchase Assistance Loan (PAL) is funded under the Neighborhood Stabilization Program (NSP2). The PAL is a deferred second loan of 20% of the purchase price up to $50,000 to help with the purchase of foreclosed and abandoned homes and those at risk of foreclosure in San Jose.
The PAL is a 30-year loan with an interest rate of 0%. Payment is deferred until the expiration of the term, sale of the home, or refinance of the first mortgage. There are no monthly payments on a PAL loan. Pre-approvals are available.
|Important PAL Program Requirements|
|Property must meet definition of foreclosed or abandoned. Some short sales included.||Read the NSP2 definition of a foreclosed home. Click here.|
|Property must be located in an eligible census tract within the City of San Jose||Find PAL eligible census tracts. Click here.|
Find homes that may fall within the eligible census tracts and may qualify. Click here.Purchase price of home must be 1% below appraised fair market value.Download a sample PAL Program Addendum for Real Estate Contracts. Click here.You must complete an 8 hour HUD approved Homebuyer Education class.Homebuyer Calendar: Visit our calendar to see HUD approved homebuyer education classes. Click here.Property is subject to environmental review and home inspection by the City of San Jose.Download a copy of the PAL Property Eligibility Requirements Checklist. Click here.Occupancy requirements apply.Read the policy alert for guidance on NSP Tenant Protection Requirements. Click here.Guidelines & Application DocumentsLoan Pre-Approvals: The Housing Trust is now offering to pre-approve borrowers for our PAL, MAP and GAP loans. To download a copy of the fillable Pre-Approval Application, Click here
Download a copy of the Purchase Assistance Loan (PAL) program guidelines. Click here.
Download the Application form. Click here.
Download the Notice to Seller form. Click here.
Download the Seller Certification letters. Click here.