Mortgage Assistance

NeighborWorks® Sacramento offers financing for down payment assistance and closing costs for first-time homebuyers that plan to buy and occupy a home in the Sacramento Region. We currently offer 2 affordable types of mortgage assistance loans: NeighborWorks® CalHome & Purchase Advantage Loan (PAL). For a comparison of both programs:

For all of our mortgage assistance programs, applicants are required to complete the 8-hour homebuyer education course from NeighborWorks® HomeOwnership Center Sacramento Region. Funding for each program is subject to availability on a first-come first-serve basis.

NeighborWorks® CalHome

This loan provides down payment assistance up to $30,000 and is deferred for 30 years at 3% simple interest. There are no monthly payments. In order to be eligible, you must be a first-time homebuyer and the total household income cannot exceed 80% of area median income for Sacramento County. The property must be located in an eligible census tract (see CalHome map below) and not exceed the maximum sales price limit of $299,000.

Click on the following attachments for more information:

NeighborWorks® Purchase Advantage Loan (PAL)

Our PAL is a fully amortizing loan that can be used for down payment and allows up to 3% of the sales price toward closing costs. This loan will be subordinate to a conventional or FHA insured first mortgage loan. Click on the following attachments for more information:

Licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act License # 4170042

How to Apply for Mortgage Assistance:

NeighborWorks® Sacramento maintains a list of Preferred Lending Professionals who can reserve CalHome or PAL funds on behalf of their borrowers. To apply for either program, Preferred Lending Professionals will be required to submit a complete loan submission package. Below are the program guidelines and loan submission checklists for each program: 

CALHOME

PAL

Don’t have a lender you’re working with?

Don’t have a lender you’re working with? Go to our Preferred Lending Professionals section of our website to find a Preferred Lending Professional who can help you apply for NeighborWorks® CalHome or PAL mortgage assistance loans.