CAPITOLA, Calif.–Bay Federal Credit Union helped eight local families achieve their dream of homeownership by distributing $400,000 in down payment assistance grants through the Federal Home Loan Bank of San Francisco’s Middle-Income Downpayment Assistance Program.

In both 2024 and 2025, Bay Federal said it awarded $200,000 annually in grants of up to $50,000 each to four first-time homebuyers, easing the burden of down payment and closing costs for eligible middle-income members in Santa Cruz, Monterey, and San Benito counties.

“Saving for a down payment remains one of the biggest challenges for many aspiring homeowners,” VP-Mortgage Lending Michael Smith said in a statement. “This program gives our members a powerful boost at a critical moment, and it reflects our commitment to helping them achieve long-term financial stability and success.”

The program supports buyers earning just over 80% and up to 140% of area median income and requires participants to complete homebuyer education and contribute at least $10,000 of their own funds. FHLBank San Francisco’s 2025 allocation of $10 million was fully reserved within two weeks of opening.

Since 2023, the program has awarded $40 million in grants to more than 800 first-time homebuyers across Arizona, California, and Nevada. Bay Federal will continue promoting the program and expanding access to homeownership support as future funds become available.