The City of Downey has teamed up with the housing non-profit organization Neighborhood Housing Services (NHS), to offer a $60,000 down payment assistance loan to qualifying families in the community.

The program allows for two (2) $30,000 loans to be combined, a City loan and a matching loan from NHS, to provide the borrower with a total $60,000 loan at 3% simple interest.

The City’s interest will begin to be forgiven after the 20th year at a 1/10th rate per year; at the 30th year, the City’s original loan amount and any interest will be forgiven in its totality.

If the homebuyer sells, transfers/changes title, refinances and cashes-out, and/or no longer utilizes the property as their primary residence before the 30th year, the original City loan amount, plus applicable interest, will be due and payable.

NHS’ principal loan amount and interest will be due and payable at the 30th year.

If funds are no longer available, or you are unable to meet the qualifications for this assistance program, there are other options that may be available to you.

California home buyers should also explore Mortgage Credit Certificates, CRA Programs, Lender/Agent Credits or other creative down payment and closing cost assistance options.