The Housing Trust Fund of Santa Barbara announced that it will expand two down payment loan programs after it was granted $5.3 million in new funding.

The nonprofit will be offering more loans to first-time homebuyers who need help securing down payments as part of its goal of helping low- and middle-income Santa Barbara residents become homeowners. 

Housing Trust Fund of Santa Barbara was awarded $4.8 million by the California Department of Housing and Community Development’s CalHome Program.

The organization also received $1.5 million in funding from local sources for its Countywide Workforce Homebuyer Down Program.

The CalHome program is important for low-income families who struggle to afford a down payment, said Jon Peterson, CEO of the Housing Trust Fund of Santa Barbara and the executive director of the Coastal Housing Partnership. 

“It’s hard to keep up with inflation (and) the cost of living, and save enough for a down payment,” Peterson said.

The down payment loan assistance program is available to first-time homebuyers in Santa Barbara County who make up to 80% of the area’s median income. The median income for Santa Barbara County is $113,300, according to the Housing Authority of the County of Santa Barbara.

The combined income of the applicant’s household must be less than 80% of the area’s median income. Applicants must work in Santa Barbara County and must also be U.S. citizens, naturalized citizens, or permanent residents.

The Housing Trust Fund is also expanding its Countywide Workforce Homebuyer Program. The program offers loans to first-time homebuyers who make up to 230% of the area median income. 

Applicants who meet the program’s requirements may be eligible for a 10-year-interest-only loan up to $125,000.

Peterson explained that the reason the income range is so much higher than the area median income is because of the high cost of homes in Santa Barbara County.

The median price of homes sold in Santa Barbara in 2024 was $1,186,500, according to the Employment Development Department. 

Even families with good incomes can struggle to afford to buy a home in the county, according to Peterson.

“We’re making it possible for families to get into home ownership that otherwise, because of high rents, or again, because of the cost of living, they’re not able to save enough,” Peterson said.

The Workforce Homebuyer Program started in North County, and the first loan was closed in July 2012, according to Peterson. The loan program then expanded to the South County and issued its first loan in March 2016.

The program is funded by local sources, including American Riviera Bank, Community West Bank, Montecito Bank & Trust, and the Housing Trust Fund.

Peterson says that he wants potential buyers to know that both loan programs are available and already accepting applications. The Housing Trust Fund has approved 102 loans since the programs began.  

Peterson added that the Housing Trust Fund is dedicated to working with local nonprofits to help people become homeowners.

“We’re trying to demonstrate by working together how we can serve more people and expand the opportunities for the local workforce and local individuals who are part of our community,” Peterson said.

For more information on the loan program and full requirements, visit sbhousingtrust.org.

The state’s CalHome program has given $181.1 million in grant funding across California, according to the Housing Trust Fund.