Published June 16, 1998
Volume 6, Number 6

City of Pleasanton Unveils New First-Time Home Buyer Program

Families hoping to purchase a first home in Pleasanton will receive a boost from the City of Pleasanton's new Community Assisted Shared Appreciation (CASA) Home Loan program. 

The program, originally created by Bay Area non-profit Northbay Ecumenical Housing (NEH), provides up to $30,000 in the form of a shared appreciation mortgage, which requires no monthly payments. 

Unconventional Financing
The program is a great example of a public/private partnership, with the City of Pleasanton and Tracy Federal Bank providing financing. 

"We've been involved in ownership programs for several years, primarily focusing on new projects that have been approved and built since the early '90s," says Scott Erickson, City of Pleasanton housing specialist. "This program targets an additional niche, because it applies to existing housing."

To participate, qualified buyers pay a five percent down payment, plus closing costs, and will obtain a first mortgage through Tracy Federal Bank. The City of Pleasanton and Tracy Federal Bank then team up to provide up to $30,000 toward a second and third mortgage, processed and funded by NEH. The first mortgage is repaid monthly, as usual, but the second and third mortgages are repaid when the home is sold or refinanced in the future. Rather than require monthly principal and interest payments, the City and Tracy Federal Bank share in the future appreciation of the property. 

Buyers' Qualifications
Applicants must currently live or work in Pleasanton, have good credit, at least a one year work history, and meet the program's income requirements. 

Income requirements are based on family income, depending on the size of the family. Preference will be given to families earning 80 percent or less of the area's median income. The maximum home purchase price under the program is $231,000.

For more information on the CASA Home Loan program, call Gail Barthel, Tracy Federal Bank Lending Department, at (800) 948-7229. 


Also in this issue ...