The City of Milpitas administers a for-sale, first-time home ownership program for very-low, low- and moderate income households. To be eligible, the entire household must be first-time home buyer(s) and cannot have owned a property during the 3 year period prior to date of application, have the ability to provide at least 10% required down payment and household’s income cannot exceed very-low, low- or moderate as defined by the California Department of Housing and Community Development, please refer to the chart below.  For more information and to be placed on the waiting list, please download the application under the tab to the right.

Currently the City does not have any below market rate homes available. If you do apply and choose to submit an application,  you will be placed on a waiting list.

The current waiting time is over a year.  The waiting list is based on time of submission and City Council’s set-aside preferences, in this order: Milpitas residents, Milpitas workers and in special application periods, full-time teachers under the Milpitas Unified School District.

**ALL APPLICANTS are required to attend Project Sentinel’s first-time home buyer’s course when applying:

2018 State Income Limits

Frequently Asked Questions (FAQ)

Q: Are gift funds allowed towards the purchase of the home?

A:  The City allows gift funds up to 50% of the purchase price.  The gift funds must be seasoned and disclosed during time of application.  With the submission of the application, the applicant must submit the donor’s affidavit of the amount, with attached bank statement of this amount.


Q: Does the City have a list of preferred lenders?

A: At this time, the City does not have preferred lenders.


Q: Will I be notified by the City when my application has been received?

A: After the City has reviewed your application for income eligibility, if qualified you will receive a letter of the income level and number of household members you qualified within two (2) weeks.


Q: What is calculated towards my income?

A: Please refer to the memo in the application.  We include the gross income of all household members including SSI, temporary/part-time jobs, Armed Forces stipend/earned income, etc. 


Q: How long will it take to be notified for my chance to purchase?

A: The waiting time for an available BMR home varies.  We cannot predict when current owners are ready to sell. The wait will be more than a year.


Q: How do I apply for a preference?

A: As indicated in the application, you must submit a utility bill (internet, PG&E or water) that lists your name and address and/or current and signed lease that lists your address.


Q: How much do I need for a down payment?

A: You will need to provide at least 10% down payment of the purchase price of the home and it is form of liquid assets – not line of credit or pre-qualified mortgage.



Q: What if our income changes?

A: We calculate the gross income of combined income of adults over 18 years and older at time of application.  However, before the purchase of a BMR home the City may ask for updated income materials to confirm income eligibility.


Q: What if the home offered is too small?

A: The BMR housing stock only has 1, 2, and 3 bedrooms available.  If you are seeking larger than 3 bedrooms, we cannot offer that. In the case that you do not like what you are offered, you will go back on the waiting list.


Q: Do I need to attend a first-time home buyer course?

A: Yes, you will need to submit a copy of Project Sentinel’s Certificate of Completion of the First-Time Home buyer course. 


Q: Does the City complete a credit check?

A: No, we do not.