Capitola, CA – July 3, 2025 - Bay Federal Credit Union has 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 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,” said Michael Smith, Vice President of Mortgage Lending at Bay Federal Credit Union. “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.

“These grants can be the key to open the door to homeownership for middle-income families and individuals,” said Eric Cicourel, community investment officer with FHLBank San Francisco. “We’re proud to partner with our member, Bay Federal Credit Union, to make these grants available to families and middle-income workers who serve vital roles in their community, but often struggle with rising rents and housing uncertainty.”

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.

To learn more, visit www.bayfed.com/homeloans or contact Bay Federal’s Home Lending Team at 831.479.6000, x8304.

About Bay Federal Credit Union

Bay Federal Credit Union is a full-service, not-for-profit financial institution that serves over 94,000 members and 2,700 local businesses non-profit organizations throughout Santa Cruz, San Benito, and Monterey counties. With more than $1.7 billion in assets, Bay Federal is the largest member-owned financial institution in the region. The organization has been proudly serving its members and the community since 1957. Bay Federal is a certified Community Development Financial Institution, with a primary mission of promoting community development alongside their financial activities. Bay Federal has an award-winning employee volunteer program in which employees have given their own money and volunteer for numerous local schools, nonprofit organizations, and community events each year.