San Jose gives equity boost to hundreds who took part in first-time homebuyer program

HUNDREDS OF FIRST-TIME San Jose homeowners who took out loans with the city to make down payments are set to get back tens of thousands of dollars in home equity.

The San Jose City Council voted unanimously April 8 to restore home equity shares for residents who bought homes under the city’s defunct First-Time Homebuyer Loan Program. The 1990s-era program saw low-income homeowners make deals with the city to trade down payment assistance funds for a cut of the future home sale profits. As a result of Tuesday’s vote, more than 400 first-time homebuyers who participated in the program will go from owning 70% of their home’s equity to 85%. This will translate into an unexpected profit boost for homeowners if they decide to sell.