Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to find something affordable in a competitive market like Fremont. But don’t worry—I’m here to help you understand a fantastic opportunity that might make your journey to homeownership a bit smoother: Fremont’s Below Market Price (BMP) Homes program.

What is the BMP Homes Program?

The City of Fremont offers income-eligible first-time homebuyers the chance to purchase homes at prices below the market rate. This initiative is part of the city’s Affordable Housing Ordinance, aiming to make homeownership more accessible for those who might find market prices out of reach.

Funding Source

The program is funded through the city’s Affordable Housing Ordinance, which requires private developers to either set aside homes for low- to moderate-income households or pay an in-lieu fee. When developers choose to set aside homes, these properties become available through the BMP program.

Eligibility Criteria

• First-Time Homebuyer Status: You must not have owned a home within the last three years.
• Residency or Employment: Priority is given to those who currently live or work in Fremont.
• Income Limits: Your household’s gross annual income (before taxes) must fall within specific limits, which vary based on household size. For example, for a 3-person household, the income range is typically between $100,950 and $159,750. These figures can change, so it’s best to check the latest guidelines.

Benefits

• Affordability: Purchase homes at prices below the market rate, making homeownership more attainable.
• Community Stability: Owning a home can provide stability and a sense of community, especially when you live or work in the area.

Potential Drawbacks

• Availability: BMP homes are limited and become available only when developers set them aside or when current BMP homeowners decide to sell.
• Resale Restrictions: There may be restrictions on the resale of BMP homes to ensure they remain affordable for future buyers.

Application Process

1. Stay Informed: Sign up for the City’s First Time Homebuyer Program Interest List to receive notifications when BMP homes become available.
2. Hire a Realtor: Engage a realtor to represent you in the process.
3. Complete Necessary Forms: Fill out the City’s Eligibility Checklist and BMP Application.
4. Obtain Loan Pre-Approval: Secure a loan pre-approval letter from a City Participating Lender.
5. First-Time Homebuyer Education: While not required to apply, obtaining a HUD First Time Homebuyer Certificate is necessary to purchase the home.

Geographic Availability

This program is specific to the City of Fremont, California.

Pros and Cons

Pros

• Affordable Homeownership: Access to homes priced below market value.
• Priority Consideration: Preference for applicants who live or work in Fremont.

Cons

• Limited Availability: Homes are only available when set aside by developers or when current BMP homes are sold.
• Income Restrictions: Strict income limits may exclude some potential buyers.

Type of Assistance

The BMP program provides access to homes at below-market prices but is not a grant or loan. It’s a purchasing opportunity with income and resale restrictions.

Sources

• City of Fremont Official Website
• Fremont BMP Program Details