Elk Grove First Time Homebuyer Program

Elk Grove First Time Homebuyer Assistance Program

The City of Elk Grove is offering assistance for first time homebuyer to purchase homes in Elk Grove. Low interest, deferred payment loans of up to $40,000 for down payment and closing costs are available to Elk Grove residents.  The program is available to a first time homebuyer who meets the income and eligibility requirements.

Loan Highlights

  • 30-year, silent second mortgage.
  • 3.00% interest.
  • No monthly payments.
  • Loan amount based on income and need, up to 20% of appraised value or $59,650 (whichever is less).
  • Up to 3% for non-recurring closing costs.
  • Available for first Elk Grove time homebuyer.
  • 650 Minimum Credit Score
  • View the income guidelines HERE.

Eligible Properties

  • Single-family detached, single family semi-detached, approved condominium, or half plex.

    Elk Grove Down Payment Assistance FHA CONVENTIONAL

  • Within the City of Elk Grove
  • Owner-occupied, newly constructed (never occupied), or vacant at least 3 months Maximum price of $278,500 (As of July 2015, 100% county median).
  • Home inspection required.

Full program guidelines can be found HERE.


The program is strict in it’s guidelines in order to help those that really need it.  With over a silent loan up to $40,000 first time homebuyers will find owning a home has never been cheaper.

Here’s a scenario for you:

  • Family of 4 with an income of $60,900
  • $200,000 purchase price
  • 20% Down Conventional Loan
  • Using Elk Grove First Time Homebuyer Program

The mortgage would be split up in two parts (1st and 2nd)

  1. Loan 1: $160,000 = 80% of sales price / Conventional 30yr Loan
  2. Loan 2: $40,000 = 20% of sales price/ Elk Grove First Time Homebuyer program

Using a 4.25% interest rate the total monthly payment  on the first loan would be:

$1,053 per month (principle, interest, taxes, and insurance)


Explaining the Silent Second Loan

The City of Elk Grove and other non-profit organizations use the silent second mortgage as a method to make home affordability a reality.  The program allows First Time Homebuyer the opportunity to borrow a large sum of money for a LONG period of time without compounding interest. Simple interest is charged on the loan, but as interest accrues it’s not charged additional interest.  Credit Cards use compounding interest to maximize profit  by charging interest on interest.

The silent second used for this program is better than any other around since it  has an interest forgiveness period if the borrower occupies the home for 20+ years.  Once you reach the end of your 30yr loan term only the amount originally borrowed is due.



Call ME for pre-qualification (209)474-7111


Jeff Womack

Jeff Womack

Sr Loan Officer and Mortgage Blogger at The Mortgage House Inc.
HARP, FHA, VA, Conventional, USDA, down payment assistance. Blogger and mortgage expert helping potential home buyers finance homes . Serving Stockton, Lodi, Elk Grove, Sacramento (NMLS #262055)
Jeff Womack


Mortgage & real estate information with your home loan expert in the Stockton and Sacramento area.
Jeff Womack