Buying your first home in Morgan Hill can feel out of reach when down payment savings have to keep up with million-dollar price tags. If you are looking for a way to bridge that gap without adding another monthly payment, the Empower Homebuyers SCC program is worth a close look. In this guide, you will learn who qualifies, how the loan works, what to confirm about current limits, and the exact steps to use it for a purchase in Morgan Hill. Let’s dive in.

Empower Homebuyers SCC basics

Empower Homebuyers SCC is a Santa Clara County down payment assistance program funded by the County’s Measure A bond and administered by Housing Trust Silicon Valley. It is designed for first-time buyers purchasing a primary residence in the county, which includes Morgan Hill. The assistance comes as a deferred, 0% interest shared appreciation loan that helps cover your down payment and closing costs. You repay the principal plus a proportional share of appreciation when you sell, refinance, or the loan matures. Learn more about the program’s purpose and structure.

Who can qualify in Morgan Hill

To use Empower for a Morgan Hill home, you must meet County eligibility rules. The County lists the core requirements on its official program page.

• Be a first-time homebuyer. The County typically defines this as no ownership in a primary residence in the past 3 years, with some exceptions.
• Buy an owner-occupied primary residence in Santa Clara County.
• Get pre-approval from an approved lender before applying for Empower.
• Complete a HUD-certified 8-hour homebuyer education course.
• Contribute at least 3% of the purchase price from your own funds.

You also need to meet income limits. Empower uses 120% of Area Median Income and the County updates limits annually. For 2025, examples include: 1 person $164,000, 2 persons $187,400, 3 persons $210,850, and 4 persons $234,250. Review the latest rules and income limits on the County’s Empower Homebuyers SCC page.

How the loan works

Empower is a deferred, 0% interest loan with shared appreciation. You make no monthly payments on the Empower loan during the term, often referenced as a 30-year deferred period. When you sell, refinance, or reach maturity, you repay the principal plus a share of the home’s appreciation based on the percentage of the purchase price that Empower covered. See a full description in Housing Trust’s overview of the program’s structure and funding here.

Simple example of shared appreciation

The County publishes an example using a 17% loan share. If you buy for $600,000 and receive 17% in assistance ($102,000), and later sell for $800,000, your home appreciated by $200,000. Your shared appreciation would be 17% of that $200,000, or $34,000. You would repay $102,000 plus $34,000. You can view the County’s example on the official program page.

Status and caps to confirm first

Housing Trust Silicon Valley currently shows Empower Homebuyers SCC as fully subscribed and invites you to join the interest list for future availability. Confirm program availability before you start. Check the latest status on HTSV’s Empower page.

Published materials have shown different caps over time. Some County materials reference up to 17% of the purchase price with a maximum loan and purchase price cap. Earlier descriptions from various sources referenced different percentages or maximums. Because these figures have varied, always confirm today’s maximum loan percentage, loan dollar cap, and any purchase price cap directly with HTSV or the County using the links above.

What this means for Morgan Hill prices

Recent Morgan Hill market snapshots often show median sale prices in the range of about $1.1 million to $1.3 million. This matters because the size of your Empower loan and any purchase price cap can determine whether the program will cover enough of your down payment to compete in Morgan Hill.

• For a $1,100,000 home, 17% equals $187,000.
• For a $1,300,000 home, 17% equals $221,000.

If the current program caps set a maximum loan amount or a maximum purchase price, that could limit how much assistance you receive at these price points. Confirm the exact caps with HTSV before you shop, then target homes that fit both your first mortgage approval and Empower’s limits.

Step-by-step: How to use Empower in Morgan Hill

Follow this local-friendly checklist to prepare and apply.

1. Verify current availability and terms

• Start by checking whether the program is accepting applications and what the current limits are. Join the interest list if it is fully subscribed. Use HTSV’s Empower page.

2. Get pre-approved with an approved lender

• Empower requires a pre-approval from an approved lender before you apply. If your loan officer is new to HTSV programs, ask HTSV for lenders who have processed Empower loans. See requirements on the County’s program page.

3. Complete HUD-certified homebuyer education

• Take the required 8-hour class through an approved provider and keep your certificate for the application. HTSV lists approved education providers on the program page.

4. Prepare your documents

• Collect IDs, income documents for all adult household members, assets, employment verification, your lender’s pre-approval letter, and proof of your minimum 3% buyer contribution. See the County’s eligibility and documentation notes here.

5. Submit the interest form or application

• Complete HTSV’s interest form if the program is subscribed, or submit the application package when it opens. Follow HTSV underwriting steps and coordinate timelines with your primary lender.

6. Close and record the loan

• At closing, HTSV records the Empower loan as a lien. Future triggers for repayment include a sale, a refinance, or maturity according to your loan documents. You and your lender should review how the subordinate lien affects any future refinance. Program mechanics are outlined in Housing Trust’s overview here.

Benefits and tradeoffs to weigh

• Benefits: lowers your cash to close, keeps your monthly payment focused on the first mortgage, and supports qualified first-time buyers purchasing in Santa Clara County.
• Tradeoffs: you share a proportional slice of future appreciation and the subordinate lien can influence refinance options. Talk with your lender and HTSV early so your financing plan matches your long-term goals. Review the County’s shared appreciation example on the program page.

Local resources and next steps

Morgan Hill has promoted Empower through local webinars in partnership with Housing Trust Silicon Valley. You can see a past city announcement about these sessions on the City of Morgan Hill news page. For the latest program status, income limits, and application details, rely on HTSV and the County’s official pages linked above.

If you want help tailoring a purchase strategy that fits Empower’s current caps and Morgan Hill price points, connect with a local, hands-on Realtor who knows cross-market financing paths and first-time buyer logistics. Reach out to Naomi Townsend to map your steps, coordinate with an approved lender, and position your offer with confidence.

FAQs

What is Empower Homebuyers SCC and who runs it?

• Empower is a Santa Clara County down payment assistance program funded by Measure A and administered by Housing Trust Silicon Valley to help first-time buyers purchase a primary residence.

How does the Empower shared appreciation work?

• You repay the principal plus a share of appreciation that matches the percent of your purchase price that Empower covered, and you pay it when you sell, refinance, or the loan matures.

What are the current income limits for Empower?

• Empower uses 120% of Area Median Income and the County posts the current limits each year; see the latest table on the County’s Empower page for exact amounts.

Is Empower available right now in Santa Clara County?

• HTSV currently lists the program as fully subscribed and invites you to join an interest list; check the HTSV program page for current availability and timelines.

Can I use Empower on a Morgan Hill home above $1 million?

• It depends on the program’s current loan percentage, maximum loan amount, and any purchase price cap; confirm those caps with HTSV before shopping so you target eligible homes.

Will Empower affect my ability to refinance later?

• The Empower loan is recorded as a subordinate lien, so your first mortgage lender must approve any future refinance; discuss this early with your lender and HTSV.