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1. The Housing Trust of Santa Clara
County
First-Time Homebuyer Programs
October 2009

2. What is the Housing Trust (HTSCC)?
 A nonprofit community lender formed in 1999 by the County
Board of Supervisors, Silicon Valley Leadership Group, the SCC
Collaborative on Affordable Housing and Homelessness, and the
Housing Action Coalition.
 501(c)(3) public benefit corporation
 Since 1999, HTSCC has raised over $38,000,000 in voluntary
contributions from the public and private sector for the
development of affordable housing and provision of loans to first-
time low and moderate income homebuyers.
 Public-private partnership makes us unique
 Awarded 2006 Neighborhood Builder Award for Neighborhood
Excellence from Bank of America

3. About the Housing Trust
 First-time Homebuyer Assistance
 Investment: $14,260,000
 Leverage: $681,040,000
 Families Helped: 2,046
 Multifamily Rental Housing
 Investment: $7,820,000
 Leverage: $467,000,000
 Families Helped: 1,643
 Homelessness and Special Needs
 Investment: $9,970,000
 Leverage: $267,000,000
 People Helped: 3,976
Total Investment: $32.1 million
Total Housing Opportunities Created: 7,665

4. The Need
 For the second quarter of 2009, California Association of
Realtors First-time Buyer Housing Affordability Index for
Santa Clara County shows just 58% of households can afford
an entry level home priced at $425,000
 This calculation assumes an adjustable rate loan and a 90%
LTV first
 Even with falling prices, first-time homebuyers still need
help with downpayment and closing costs

5. First-Time Homebuyer Programs
 Closing Cost Assistance Program (CCAP)
 Equity Share Co-Investment (ESCO)
 Mortgage Assistance Program (MAP)
 Downpayment Assistance Program (DAP)

6. Closing Cost Assistance Program (CCAP)
 $6,500 maximum loan amount
 3% simple interest, deferred
 Term 30 years
 Repayment at maturity, sale, or refinance
 Minimum 3% downpayment

7. Closing Cost Assistance Program (CCAP)
Eligibility
 Maximum Income 120% of AMI
1 2 3 4 5 6 7 8
$88,600 $101,300 $113,950 $126.600 $136.750 $146,850 $157,000 $167,100
 First-time homebuyer. Borrower has not owned a home in
Santa Clara County for the past three years
 Minimum 620 FICO score
 38% Front-end ratio; 45% Back-end ratio
 Home must be located in Santa Clara County

8. CCAP Application Procedure
 Application available online at the Housing Trust
website, www.housingtrustscc.org
 First lender submits application with supporting
documents and non-refundable application fee to
the Housing Trust
 Housing Trust turns around application within five
business days
 Housing Trust wires funds to escrow at closing

9. Equity Share Co-Investment (ESCO)
 Borrower puts down 5-15% as downpayment
 Housing Trust matches dollar for dollar up to 10%.
Maximum ESCO is 10% of the purchase price up to
$75,000.
 Term is 10 years
 No payments due during the term of the ESCO investment
 At sale, refinancing or maturity, borrower and HTSCC share
in any appreciation of the property in proportion to the
percentage of original equity investment. Borrower gets
credit for principal payments and any qualified home
improvements

10. Equity Share Co-Investment (ESCO) Eligibility
 Maximum income is 140% of County AMI
1 2 3 4 5 6 7 8
$103,390 $118,160 $132,930 $147,700 $159,530 $171,360 $183,120 $194,950
 Borrower must be first-time homebuyer, defined as not
having owned a home in Santa Clara County in the past 3
years
 Minimum FICO score is 650
 Maximum Front-end debt ratio is 38%. Maximum back-end
debt ratio is 45%
 Home must be located in Santa Clara County

11. Example-First-Time Homebuyer ESCO
$800,000
$700,000 Investor IRR 11%
-
40,317
-
$600,000 171,958 Homebuyer IRR 17%/
176,066 11%*
$500,000 -
37,500 37,500
37,500
-
37,500
$400,000 103,320 Transaction Expense
72,746
-
Appreciation
$300,000
Homeowner
$200,000 $425,000
$352,254 $352,254 Trust Fund 1
$100,000 Principal Payments
Mortgage
$-
Closing Year 10 Upon Sale
Note: Assumes an amortizing loan, 3% annual Home Price Appreciation, 6% cost of sale, 30-year fixed-rate
amortizing mortgage. 85% of purchase prices borrowed; Trust funds 7.5%, homeowner funds 7.5%.
*Homebuyer earns 17% on d.p. incl. mortgage principal credit; 11% not counting mtg. principal credit

12. ESCO Application Procedure
 Program guidelines and application available online at ESCO
website, http://www.ahepllc.com/partners/htscc
 Applicant submits ESCO application with first lender pre-
approval letter and other supporting documents
 Applicant attends approved first-time homebuyer class
 Applicant attends ESCO program seminar
 Housing Trust responds within 10 business days

13. Mortgage Assistance Program (MAP)
 Maximum loan amount $35,000. Exceptions may be made
to this limit at the discretion of the Housing Trust on a case-
by-case basis.
 Amortizing second loan
 Interest rate is 1.5% above the Fannie Mae conforming rate
 Loan has a 30 year term
 Loan can be used toward home purchase, for closing costs,
mortgage insurance premiums, interest rate buy-downs, or
other costs approved by the lender and Housing Trust

14. Mortgage Assistance Program Eligibility
 Maximum income is 120% of AMI
 First-time homebuyer, defined as not having
owned a home in Santa Clara County for the past
three years
 Minimum FICO score of 680
 38% Front-end ratio; 45% Back-end ratio
 Home must be located in Santa Clara County

15. MAP Application Procedure
 Application available online at Housing Trust
website, www.housingtrustscc.org
 First lender submits application with supporting
documents and application fee
 Housing Trust reviews processes application
within five business days
 Housing Trust wires funds to escrow at closing

16. Downpayment Assistance Program (DAP)
 $15,000 loan amount
 Maximum income 120% AMI
 First-time homebuyer
 Payments deferred for first 5 years
 Converts to amortizing loan in 61st month
 Program administered by Neighborhood Housing Services
Silicon Valley (NHSSV)
 NHSSV must be first mortgage lender
 Contact NHSSV to apply, www.nhssv.org

17. Program Comparison
Income Limits Maximum Loan Loan Terms
Amount
Closing Cost Up to 120% AMI $6,500 3% simple interest,
Assistance Program deferred, 30 years
ESCO Up to 140% AMI 10% of purchase Equity share at sale,
price up to $75,000 refinance or 10 years
Mortgage Assistance Up to 120% AMI $35,000 Amortizing loan, 30
Program year term
Downpayment Up to 120% AMI $15,000 Amortizing 30 year
Assistance Program loan, 5 year deferral

18. Program Availability
 Closing Cost Assistance
 Applications and guidelines available on Housing Trust website
 ESCO
 Applications and guidelines available on the ESCO website,
http://www.ahepllc.com/partners/esco
 MAP
 Applications and guidelines available on Housing Trust website
 DAP
 Applications processed by NHSSV, www.nhssv.org

19. Contact Information
 Website: www.housingtrustscc.org
 Dan Lachman
Homeownership Program Manager
(408) 436-3450 ext. 230
dan@housingtrustscc.org