Below Market Rate Partnership Program
The County of Santa Clara works with Partner Cities to help lower-income households purchase homes through the Partner Cities’ inclusionary housing or other local homeownership programs.
How it works
The County lends qualifying homebuyers the amount needed to fill the financing gap in order to afford to purchase a home through a local Partner City’s inclusionary housing program or other local homeownership program. The County’s subsidy covers a portion of the sales price to allow lower income buyers to need a smaller first mortgage loans.
The County loans are secured by a Deed of Trust on the property and require no monthly payments and have 0% interest.
The County provides these loans to create affordable homeownership opportunities for lower income households.
Who qualifies?
Qualifying homebuyers must have an annual household income of 80 percent of Area Median Income or lower as outlined here. Some sources of funds require that homebuyers be first-time homebuyers. A first-time homebuyer is someone who has not owned their main residence during the last three years. Some exceptions may apply.
Income of all household members 18 years or older must be considered.
| Household size | Maximum annual income |
|---|---|
| 1 person | $102,000 |
| 2 persons | $116,900 |
| 3 persons | $131,500 |
| 4 persons | $146,100 |
| 5 persons | $157,800 |
| 6 persons | $169,500 |
| 7 persons | $181,200 |
| 8 persons | $192,900 |
Eligible properties
Any single-family dwellings, including detached, condos, townhomes, and manufactured homes. Homes must be located in the City of Campbell, Cupertino, Gilroy, Los Gatos, Milpitas, Morgan Hill, Mountain View, Palo Alto, Santa Clara, or Sunnyvale.
The County may issue deferred loans directly to qualifying households purchasing a home within the unincorporated county and within cities which do not currently have an active homeownership program.
County loan details
| Amount | Varies, based on underwriting. |
| Interest | 0% |
| Payments | No monthly payments. The County’s loan is due in 30 years or when the borrower sells, transfers, or refinances the property (under certain conditions) or converts the home to a rental property. |
| Junior mortgage | The County’s junior loan must be combined with a 30-year fixed first mortgage. |
| Owner occupancy | You must owner-occupy the home. For Accessory Dwelling Units (ADUs), the applicant must owner-occupy either the primary home on the property or the ADU. The structure which the borrower does not occupy may be rented. Tenants shall not be considered as part of the applicant’s household under this program and are not required to income qualify. An ADU may not be rented for less than 30 days (no short-term rentals). |
BMR Partnership Program
To purchase a home within a Partner City, complete the following steps:
- Apply through a Partner City and meet the Partner City’s program requirements.
- The Partner City approves your application and reserves County program funds.
- The County commits funds to the transaction. Funds are committed on a first-come-first serve basis only after the buyer is in contract and eligible financing is structured.
- Partner City submits application to Santa Clara County.
- The County verifies eligibility and issues approval letter.
- The County coordinates loan closing and funding with the first lender and escrow.
Partner City programs
If you are purchasing a home located within a Partner City with an existing homeownership program, County funds can be made available through the Partner City. For more information on local Partner City homeownership programs, visit a Partner City program page below.