BMR Program In Action: The Jones Household

In this video, the HouseKeys Team provides an overview of how a Below Market Rate Homeownership Program Works.  The points in this video include:

  • How household income is used to determine affordability level and sales price
  • The private developer's role in creating below market rate units
  • How a program applicant transitions into becoming a below market rate homeowner
  • The benefits of purchasing a below market rate home
  • How affordability levels are effected over time

This is the first in a series of videos that the HouseKeys Team will begin releasing in order to provide more information about how single family affordable homeownership programs work.

HouseKeys Morgan Hill BMR Program Update - September 30, 2015

HouseKeys Homebuyer Process (DRAFT)

HouseKeys Homebuyer Process (DRAFT)

Hello Affordable Home Buying Family!

With each day we are making more progress and building upon the work of past administrators to further improve the program and process.  I can't thank the City of Morgan Hill, the City Staff, the City Council, and the BMR Home Buyer and BMR Home Owner community enough. Thank you so much for your patience and cooperation!

We typically have workshops every other Thursday - (all at 6:30 PM) and we will use the lessons learned from this first Release and Lottery which included 13 properties available for sale and 70 buyers (Lottery 1 was held on August 14th).   We are also in the process of setting up a home page dedicated to BMR Applicants to provide more information on the application process at each major stage, including:


The illustration above is our first attempt at capturing the major steps on one slide

The loan officer will play a larger role in future property releases and lotteries.  Certified loan officers and registered lenders will facilitate the BMR application process for all buyers utilizing mortgage financing and/or down payment assistance to complete their home purchase.  The process to become an approved lender and loan officer is open to all who meet the requirements and we will be hosting orientations on October 29th and November 19th to introduce lending professionals to the program.  We encourage all lending entities to register to be affordable lenders and originators.  Note to Mortgage Brokers:  The funding lender must be registered with the program and complete all of the paperwork and agreements.

Home Buyers! Please make sure to use the time between now and the next lottery to begin gathering your application information while we get lenders set up.  Some key documents that will help you get started include (these forms can be found under the info pages tab for buyers):

  • Part 1 BMR Application
  • Part 2 BMR Application
  • Part 3 BMR Application
  • HouseKeys BMR Application Document Checklist

In the orientation, we talk about the "While You Wait To-Do List".  This is a very important group of action items to pay attention to.  There will be some down time before the next Lottery - which will most likely happen in the first quarter of 2016.  The Lottery held on August 14th was intended to handle all 13 properties that were in the pipeline to be completed before December 31, 2015.  Action items for potential applicants includes:

  1. Get with a lender and have a tri-merge credit report pulled (minimum 620 median credit score required)
  2. Check with your lender to make sure your debt-to-income ratios fall within the maximum ceilings of 40% for household expense (mortgage, property taxes, insurance payments and association dues) and 45% for all debt and household expenses (including credit cards, student loans and other loan payments).
  3. Check to make sure you have the 3% required funds for down payment.  This should be from your own funds.
  4. Begin to line up the down payment assistance and closing cost assistance programs now.  Each of those programs come with their own requirements and their own underwriting guidelines. This is an important point because you may meet the requirements of the Morgan Hill BMR Program, yet fail to meet the requirements of an assistance provider.
  5. Attend a live HUD Approved 8-Hour Pre-Purchase Class (typically costs $50, although some classes are free).  A graduation certificate is good for one year.  You must have valid certificate before closing escrow on a Morgan Hill BMR Purchase Transaction.  It's a good idea to get this done while you wait for a lottery or opportunity because classes fill up fast and there are very few agencies that provide this class.

Please stay tuned for future updates

Again, thank you for your patience and cooperation

If you have any questions, please email

Affordability Matters!


Julius Nyanda

Program Manager

Program Update for Week Beginning August 24, 2015

Hello All

The HouseKeys Team is still processing application numbers 1 through 69. These were the applications included in the Lottery held on August 14, 2015 (Lottery 1 Results).  Households holding application numbers 1 through 69 are encouraged to the Property Selection Form and confirm their Group 1 and Group 2 property choices.

I've received questions from some applicants who were a little confused about the AMI Groups.  I'm hoping the Program Guide for BMR Buyers helps.  I also want to point out that Group 2 applicants are technically able to apply for both groups of properties. This is because Group 1 is for Households with incomes up to 120% of Area Median Income. This would include those households with incomes at or below 80% of AMI.

Please Note:  With the shut down of the NHS Silicon Valley, we lost a key lending partner who provided most of the mortgage pre-approvals and closed most of the Morgan Hill BMR Program purchase loans since 2012.  The Guild Mortgage branch in Morgan Hill is our remaining program partner and we will be setting up new lenders and loan officers in the coming weeks.

We have 13 properties to match up with qualified applicants.  Take a look at our Property Listings if you haven't already.

Group 1 - Property Listings - Lottery 1

Group 2 - Property Listings - Lottery 1

On Friday, August 21 - we sent an email to all of the new applicants who completed the Program Buyer Form through last Friday. We are now up to a total of 107 Morgan Hill application numbers issued.  As we set up additional lenders and loan officers, we will release another update regarding the Morgan Hill Pre-Approval process prior to the next Lottery.

We also have a new Program Guide for BMR Buyers that we've posted on the site as well.

Thank you for your patience

Julius Nyanda

HouseKeys Program Manager

If you have any questions please email 

1-877-460-KEYS (5397)