Buying your first home can feel like a big challenge—especially when it comes to saving up for a down payment. But don’t worry! Santa Rosa has a program that might make this step easier for you.

What is the DPAL Program?

The City of Santa Rosa offers the Down Payment Assistance Loan (DPAL) program to help first-time homebuyers. This program provides loans of up to $75,000 to qualified buyers to purchase their first home within Santa Rosa city limits.

Funding Source

The DPAL program is funded by the City of Santa Rosa, utilizing $2 million from the city’s 2017 wildfire settlement with PG&E.

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a home in the past three years.
• Residency: You should be a current resident within the city limits of Santa Rosa.
• Income Limits: Your household income must be at or below 120% of the Area Median Income (AMI). For example, in 2023, the maximum income for a household of four was $154,100.
• Homebuyer Education: Completion of a HUD-certified homebuyer education course is required.

Benefits of the Program

• Loan Amount: Up to 10% of the purchase price, with a maximum of $75,000.
• Interest Rate: 3% simple interest.
• Loan Term: 30 years, with deferred payments—meaning no monthly payments required.
• Eligible Properties: Single-family homes, condominiums, cooperative units, or manufactured homes on owned land within Santa Rosa city limits.

Potential Drawbacks

• Repayment: The loan, along with accrued interest, is due upon sale, transfer, certain refinancing, or at the end of the 30-year term.
• Funding Availability: Funds are limited and available on a first-come, first-served basis. As of October 2024, the program was fully subscribed and not accepting new applications.

How to Apply

1. Pre-Approval: Work with a mortgage lender for pre-approval.
2. Application: Submit an application to the City of Santa Rosa’s Housing and Community Services Department.
3. Homebuyer Education: Complete a homebuyer education course through a HUD-certified provider.
4. Property Purchase: After approval, you have six months to close escrow on an eligible property.

Program Availability

This program is available exclusively within the city limits of Santa Rosa, California.

Sources and Additional Information

• City of Santa Rosa Housing Programs
• Program Guidelines (PDF)