Opening Doors in Our Community:
HEART's New Homebuyer Assistance Program

The Housing Endowment and Regional Trust - the HEART of San Mateo County - in a partnership with Meriwest Mortgage, has created a customized loan package that is not offered by any other lender. Our goal is simple: to help you buy a home with a 5% downpayment.

Working with Meriwest Mortgage, a wholly owned subsidiary of the not-for-profit Meriwest Credit Union, HEART has created an entirely new loan package that helps qualified moderate-income families earning not more than $150,000 and who have not owned a home in San Mateo County in the last 3 years and meet other qualifications, buy their first home in San Mateo County, or to move substantially closer to transit in the county.

Guidelines current as of July 2009. Subject to change based on rapidly changing market conditions. Check back often for updates, or call Meriwest at (408) 363-3451.

How does the Opening Doors Program work?

In conjunction with a Meriwest Mortgage first home loan, HEART of San Mateo County offers a below-market rate second loan up to $78,225 to help facilitate a home purchase with a minimum of 5% downpayment.

Based on the maximum sales price of $521,250, with a conforming first mortgage amount limit of $417,000, the maximum 2nd mortgage loan amount available is $78,225. Borrowers can put more money down on a home purchase above the $521,250 limit, however, the first and second mortgages remain at the previously described limits.

The 2nd mortgage allows for an 80% loan to value ratio on the first mortgage. The purchaser is not required to buy private mortgage insurance for this loan. This results in significant savings to the homeowner of thousands of dollars in annual mortgage insurance premiums.

The Meriwest Mortgage first loan products that will be available for this special program are:

1. a 30-year fixed rate, a 5/1 adjustable rate mortgage (ARM)
2. 30-year full amortizing
3. and 5/1 ARM adjustable 40-year loan fully amortizing.

In combination, these loans reduce the monthly payment to the homeowner. Note the maximum loan is subject to change depending on marketing conditions. The first mortgage may be up to 80% Loan to Value.

Who can apply?

In order to qualify for this loan, you must meet a few specific requirements. There aren’t many of them, but they are important and you must be able to prove that you meet each and every one of them:

1. You must live or work in San Mateo County, and the home you are purchasing must be in San Mateo County.
2. Your Total Household Annual Gross Income must be $150,000 or less. All borrowers’ credit (FICO) scores must be 680 or greater, as defined by the Fair-Isaac scoring system.
3. Your Total Household Debt to Income Ratio cannot be more than 45%. That means that when you add up all of your debts, including the expected new home mortgage (such as Principle, Interest, Taxes, and Insurance), any car payments, credit card payments and any and all other debts, loans, charge accounts, and business expenses, if applicable, etc., that you have, those total monthly payments must not be greater than 45% of your Total Monthly Household Gross Income. The purchase price of your new home with the minimum 5% downpayment, cannot exceed $521,250. Larger downpayments are allowed, however, the maximum loan amounts do not change.
4. Continuous employment for 24 months prior to application must be demonstrated. Changing jobs and moving directly from one into another is OK. Not working for a period of time (90 days) “in between” jobs is not considered to be continuous employment unless there are specific and compelling reasons that can be confirmed by your employer.
5. You must not have owned a home during the past 36 months in San Mateo County, CA, or you must be moving closer to transit in San Mateo County. A move-closer buyer is one who purchases a primary residence near transit in San Mateo County that is at least 50% closer to transit than the previous primary residence. “Near transit” means that the property is not more than a half mile from a BART or CalTrain station, or a major bus stop (serving an express route, or six routes, or an average of more than 48 buses per day).
6. You must have 5% of the purchase price available for a downpayment. Downpayment funds cannot be borrowed, but they may come from a family member.
7. As an applicant for this loan program, you are ineligible for other HEART programs.

What do I do if I have more questions?

You can download a full set of Frequently Asked Questions here:
Opening Doors in Our Community FAQ

What are the interest rates?

Interest rates in today's market are changing rapidly. For today's interest rates, please click this link for Meriwest Mortgage's current rate sheet.

How do I apply?

If you meet all of the above criteria, then you may qualify for this loan program. To review the criteria find out if this program is right for you, check back soon to apply online! click here:

How is the program funded?

HEART's donations from local employers fund the program. HEART continues to raise funds to enable this program to grow and serve even more local employees. Please click on the Donate Now button to make a gift, or contact our Fund Development staff at (650) 872-4444, ext. 4#. Thank you!