The City of Monterey provides down payment assistance to assist households to purchase inclusionary homes in the City Purchase and Resale Program only.
These two programs consist of the following:
Redevelopment Housing funds -
Provides up to $50,000 toward the required down payment. The household is expected to bring an additional 5% of the purchase price toward their portion of the down payment. All closing costs are the responsibility of the purchaser. The lender submits the application on behalf of the purchaser. The City conducts all required underwriting with the lender with the processing of the loan typically taking 4 weeks. The household must not pay more than 35% of their income toward total housing costs, which include: mortgage payment, homeowner association dues, and interest payments on principal.
NOTE: THIS PROGRAM HAS BEEN TENTATIVELY SUSPENDED WHILE THE CITY OF MONTEREY'S REDEVELOPMENT AGENCY AWAITS A DECISION BY THE CALIFORNIA SUPREME COURT ON THE FATE OF CALIFORNIA'S REDEVELOPMENT AGENCIES.
State HOME funds -
Provides up to $50,000 toward the required down payment for low-income households only. Income must be below $51,850 for a household size of four. There is a maximum purchase price for a deed restricted home of $220,000. The household must pay their own closing costs and a minimum of 2% of the purchase prices as their portion of the required down payment. Lender fees shall not exceed 2% of the purchase price if subsidized by a HOME loan.