Jackson Park Condominiums
Home Buyer Assistance Program

The Program
The Homebuyer Program at Jackson Park offers a City downpayment assistance loan of up to $60,000 for each qualified, income-eligible household. Funds from a private lender, other programs, and the buyer(s) are used to finance the remainder of the purchase price.
Bd/ba Maximum City loan Estimated Sales price
1/1 $50,000 $317,064
1/1-loft $50,000 $341,344
2/2 $60,000 $415,477
3/3 $60,000 $459,504

Borrower Eligibility
  • The household income cannot be greater than the amounts shown below. Household income is the income received from all household members, including adult children and non-applicant spouses.
Household Size Maximum Qualifying Income
1 $88,600
2 $101,300
3 $113,900
4 $126,600
5 $136,700

  • Teachers who are eligible for the San Jose Teacher Homebuyer Program and faculty and staff members who are eligible for the SJSU Faculty and Staff Homebuyer Program may receive additional down payment assistance from the City.
  • Normally, the borrower and any co-borrower(s) cannot have owned a home as a principal residence for the past three years. An exception is allowed for a "displaced homemaker" or a single parent who, while married, owned a home with his or her spouse.
  • Normally, the borrower, other household member(s), and any other co-borrower(s) must have a minimum 600 credit score. Also, the maximum housing cost-to-income ratio is 43%, and the maximum total debt-toincome ratio is 48%. The first mortgage cannot contain a "negative amortizing" feature. In addition, the homebuyer's income for the first loan must be "fully documented."
  • Completion of a homebuyer education program is required. You must provide a copy of your certificate of completion. Homebuyer education courses are available through Neighborhood Housing Services Silicon Valley (NHSSV) at (408) 279.2600. Your lender may also offer an approved homebuyer education course. You must provide a copy of your certificate of completion.
  • The total amount financed (including non-City loans) cannot exceed 105% of the sales price.
  • All homes must be "owner occupied" for the life of the loans and "cash-out" refinances of your first mortgage are allowed under limited circumstances.
  • There is a minimum household size of two persons for prospective buyers seeking to purchase a three bedroom home with City assistance.
  • Buyers may not have greater than $50,000 in liquid assets after the close of escrow. Updated 5/6/08-BHO
  • Comply with the Affordable Housing Cost Limit:
    Your monthly housing costs cannot exceed an "Affordable Housing Cost" limit. Total monthly expenses for property taxes, insurance, homeowner association dues, loan principal and interest payments, utilities (other than phone) and maintenance and repair currently cannot exceed $2,708 for the one-bedroom, $3,048 for the two-bedroom units, and $3,385 for the three-bedroom units.

Financial Terms
Interest Rates of City loan(s) - There is no set interest rate on the equity-share loan (see example below).
Loan Security--The loan is secured by a recorded Deed of Trust.
Amount Required for Down Payment/Closing Costs--The City does not require a down payment by the borrower. However, the builder may require an earnest money deposit. Contact the builder for more information.
Loan Repayment Terms-- The City loans are due and payable in 30 years or upon transfer of title to the home.
Equity Share/Resale Restriction-The City's loan is subject to a 45-year affordability restriction that is recorded against the home. If you resell your home prior to the end of this 45-year term, you must first notify the Housing Department.

You have two choices at the time of resale:
  • Resell to someone who has a household income that the City reviews and verifies that they earn less than 120% of area median income (AMI). The resale price will be restricted because it is based upon the Affordable Housing Cost limit. The seller can allow the new buyer to assume the City loan and not be required to pay the City an "equity share" on the increase in value. NOTE: The new buyer, and the new buyer's lender, must be willing to accept the terms and conditions of the City's affordability restriction.
  • Resell the home at market, repay City loan and pay the City an equity share. The equity share is the City's proportionate share of the difference between the original purchase price and the resale price (less City approved selling costs and improvements). NOTE: The equity share payment is capped at 8% simple interest.

NOTE: Prepayment of the equity-share loan while you continue to own your home will not release you from the affordability restriction.
Equity-share example ($50,000 loan):
Possible resale price $ 417,064 Original sales price 317,064
Accrued equity/appreciation $ 100,000
Less reasonable capital improvements Approved by the City $ 2,000
Less reselling costs 25,024 Appreciation subject to sharing
72,976 City's share (15.77% = $50,000 / $317,064) $11,508
Homeseller's share (84.23% of $ 72,976) $61,468
Total Repayment to City ($50,000 + 11,508) $61,508 Total
Appreciation Due to Homeowner $61,468

For purchase information, please contact the sales office at (408) 937-7103 or visit the website: www.jacksonparkcondos.com.