Down Payment Assistance Loan Program

The City of Monterey provides two down payment assistance programs to assist households to purchase 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.

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.

Please call the Housing and Property Management office at 831.646.3995 for information about this program.

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