Walnut Creek Offers a New Four-Bedroom Home for $262,750 to a Very Low-Income Family

In a region where a typical house costs well over $1 million, Walnut Creek is selling a brand-new four-bedroom home for $262,750. The catch: it's reserved for a first-time buyer household with very low income, chosen by lottery.

The home

The two-story house at Shea Homes' Abigail Place development has about 2,466 square feet, four bedrooms and three and a half baths, a second-floor loft and a landscaped backyard, according to the Bay Area Affordable Homeownership Alliance (BAAHA), the nonprofit that runs the city's below-market-rate program. Similar market-rate homes in the city's newer communities sell for about $1.1 million to $1.3 million, the alliance wrote in the Contra Costa Herald. The development is near BART and Highway 680.

Who can apply

The household must have at least four people, and no member can have owned a home in the past three years. Income can't exceed 50% of Contra Costa County's median: $84,850 for a family of four, rising to $112,050 for eight. Buyers need a minimum 3% down payment from a seasoned bank account, a 640 FICO score for every non-dependent adult, and HUD-approved homebuyer education before closing. BAAHA estimates the minimum cash needed at about $13,137, and the HOA fee is $437 a month.

Households that live or work in Walnut Creek get a lottery preference. The home can't be rented out, and resale price restrictions last 45 years.

Help with the down payment

Through a certified lender, eligible buyers may be able to tap a federal WISH grant of up to $32,000, forgiven after five years, plus a state CalHome loan, for as much as $70,000 combined. Mechanics Bank is a partner in the program, KTVU reported. Both subsidies depend on available funding.

More homes coming

Two more below-market homes at the city's Enclave development will go to "low" income households in a separate lottery, priced in the mid-$300,000s, KTVU reported. Income limits there are higher, starting at $135,750 for a family of four.

Key dates

A free virtual workshop runs 6 to 7:30 p.m. on Oct. 21. Abigail Place lottery applications are due by 5 p.m. Friday, Oct. 30, through BAAHA at myhomegateway.org. The lottery date hasn't been announced.