The Pathway to Homeownership Closing Cost Assistance Grant Program helps first-time homebuyers who are members of an "Underserved Community*" bridge the affordability gap by providing them with up to $10,000 in closing cost assistance. Each grant is provided to low-to-moderate income (120% AMI and below) first-time homebuyers who utilize the services of a CA REALTOR®.

These homeownership gaps aren’t new and, for many groups, they’re getting wider.  Experts suggest that lack of generational wealth is (can be) to blame, often leaving members of underserved communities with less funds to cover the closing costs and down payment for a home. Rather than just observe the trends, we’re taking action.  

Want to help close these homeownership gaps?  You can support C.A.R.'s HAF, and Non-Profit partner(s) efforts to offer increased homeownership opportunities for underserved communities by donating to the program below.

DONATE HERE WE NEED YOUR SUPPORT!

The Pathway to Homeownership Closing Cost Assistance Grant Program is a true Grant, thus  there is no repayment required, if the requirements below have been met on application. Funds are available on a first-come, first-serve basis with a fully accepted purchase contract from a borrower using a REALTOR® who is a member of the CALIFORNIA ASSOCIATION OF REALTORS®.)

* “Underserved Community” includes: : (i) people of color; (ii) persons with disabilities  (physical, cognitive, or mental); or (iii) lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons.

The Pathway to Homeownership Closing Cost Assistance Grant Program (“Program”) is intended to provide closing cost grants of up to $10,000 each to First-Time Homebuyers who are members of an Underserved Community and are using the proposed grant to purchase a property in California with the following criteria:

Program Criteria:

• Recipient must be a First-Time Homebuyer. “First-Time Homebuyer” means an individual (and all co-buyers on the property purchase contract, if any) who has had no ownership interest in any real property in any location during the last three (3) years.
• Recipient (one individual if two or more will be purchasing together) must be a member of an Underserved Community. “Underserved Community”  “Underserved Community” includes: (i) people of color; (https://bit.ly/PersonofColorHUD) (ii) persons with disabilities ¹(physical, cognitive, or mental); or (iii) lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons.  
• The property being purchased by Recipient must be a single-family residence (including a manufactured home or mobile home if affixed to property, a single-family residential unit in a condominium, cooperative or planned unit development, or a single-family residential one to four (1-4) unit property) in one of 58 Counties within California.
• The purchased property must not have an affordable housing deed restriction that limits Recipient’s ownership rights in the property’s equity or creates shared equity homeownership that prevents the public resale of the property by Recipient.
• Recipient’s income must be no more than 120% of the Area Median Income (“AMI”) as set forth by the California Department of Housing Community Development.
• Recipient must be represented by a member of the California Association of REALTORS^® in the transaction.
• Recipient must certify they intend to move into the property within 60 days of close of escrow and occupy the property as their principal residence for at least three (3) years.
• To purchase the property, Recipient must have used financing consistent with the National Association of REALTORS® Responsible Lending Criteria (currently found at https://www.nar.realtor/credit-policy/responsible-lending-policy-why-do-realtors-seek-to-prevent-abusive-lending#.Y2kzu4WbOkE.gmail ) which prevents abusive lending and supports responsible lending principles. Recipient must not have paid all-cash for the purchase. Exceptions may be allowed subject to Grantor’s prior written approval if Recipient used any alternative financing.
• Recipient must be left with no more than $20K in savings after the purchase.
• Recipient cannot receive ANY Cash back from the transaction, including but not limited to, earnest money deposit ("EMD"), gifts, rebates, excess financing beyond actual costs, and refunds upon closing.  For example, Recipient's Cash to Close amount on the Final Closing Disclosure ("FCD") cannot be a negative amount after all other sources of funds have been included.
• Recipient's lender and escrow/title must submit to NPHS the FCD and Settlement Statement ("SS") at least 3 business days prior to the Planned Close of Escrow ("PCOE") for NPHS's evaluation of Recipient's continued eligibility and compliance with the program criteria.
• If Recipient's lender and escrow/title, for any reason, revises the FCD and/or SS after submission to NPHS, the revised documents must be re-submitted to NPHS for re-evaluation of Recipient's continued eligibility and compliance with the program criteria.
• Program grant funds must be allocated and distributed as the final source of funds required to complete the transaction in compliance with program criteria.  All other sources of funds, including but not limited to, EMD, all loans, down payment assistance, gifts, and other grants, must be accounted for and distributed prior to allocation and distribution of the Program Grant Funds.

^{1  An individual with a disability is defined as a person who has a physical or mental impairment that substantially limits one or more major life activities.}

Restrictions:

• Grant funds cannot be distributed unless NPHS reviews the Final Closing Disclosure and Settlement Statement, confirms Recipient's continued eligibility and compliance with the program criteria, and provides final approval for distribution.
• Directors, officers, and employees of California Association of REALTORS®, NPHS, and each of their respective subsidiaries and affiliates, and members of their immediate families (spouses, children, parents, and siblings) are not eligible to be Recipients.
• REALTORS® and their immediate families (spouses, children, parents, and siblings) are not eligible to be Recipients.
• NPHS shall not give any preferential treatment or consideration to potential Recipients that are represented by NPHS’s in-house, affiliated, or preferred California REALTORS® over potential Recipients represented by any other member of the California Association of REALTORS®. 

(*“Underserved Community” includes: (i) people of color; (ii) persons with disabilities  (physical, cognitive, or mental); or (iii) lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons.) 

Apply Here at Neighborhood Partnership Housing Services
NOTE: First time homebuyers MUST complete HUD-Approved Homebuyer Education Course offered in the non profit(s) page. 

Expanded full State coverage by County HERE!