Down Payment Assistance

Our goal to help more people get on the housing ladder is genuine, and that is why we have created a down payment assistance program. The Dana Reserve, through a donation to a nonprofit, will offer $3.2MM in down payment assistance for qualified first-time buyers. This program will be overseen by People’s Self Help Housing and Community Foundation San Luis Obispo.

The Board of Supervisors voted to make a change to our program that involved a small percentage of interest in order to allow the down payment assistance fund to continue growing and serving our community. Please read on to learn how this program will work!

Qualified first-time buyers in neighborhoods 2-6 will contribute the maximum they are able, but at least 1.5% of the home price, and Dana Reserve will assist with 3.5-10% of the purchase price for the down payment. 

This assistance will have no monthly payments, and is only repaid upon future refinancing or sale, if proceeds allow. There is a non-compounding 2% interest fee per year added for a max of 10 years, for a total of 20% of the down payment assistance loan amount that would, again, only be repaid at sale or refinancing if proceeds allow. The repaid money would then be used to assist other first-time buyers in the county.

For example, if a homebuyer receives $60,000 for down payment assistance and chooses to sell their home after 15 years, they would repay $60,000 + $12,000 (20%) for a total of $72,000 to the fund (assuming their home had risen in price and proceeds allowed). If their home value decreased and the funds were not available, the assistance would be forgiven.

The concept is to use this model to grow housing assistance throughout the County through perpetual replenishing and other donations to Community Foundation San Luis Obispo. ​

If all funds are not used by the project, all remaining monies will go to support increased attainability of housing throughout SLO County.

Are you interested in this assistance program? Please add your name to our list!