Roots in a Red-Hot Market: How a Local Program Unlocks Homeownership

SANTA ROSA, CA – January 27, 2026 – By Sarah Hughes

For Amit and Diana Sharma, the new year began not just with resolutions, but with a profound sense of permanence they once thought impossible. Celebrating in a home of their own in Novato, with their two children, ages 14 and 8, was a milestone that had long seemed out of reach in one of the nation's most challenging housing markets.

“We never expected to buy a home in Marin County,” said Amit Sharma, an assistant professor at a nonprofit institute. “Between rent, daycare, and everyday expenses, saving enough seemed out of reach.”

The Sharmas are not alone in their struggle or their recent success. They are one of 13 families and individuals who have recently unlocked the door to their first home, thanks to the Down Payment Assistance (DPA) program launched by the Redwood Credit Union Community Fund (RCUCF). Since the program began last March, it has provided $292,000 in grants, helping to generate over $5.3 million in new mortgage loans for first-time buyers.

A Lifeline in a High-Cost Market

The dream of homeownership in Northern California often collides with a harsh economic reality. The program’s target counties—Napa, Marin, Mendocino, Solano, and Sonoma—are among the most expensive places to live in the United States. In Marin County, where the Sharmas now have roots, the median price for a single-family home hovered around a staggering $1.5 million at the end of 2025. In nearby Sonoma and Napa counties, median prices approached $878,000 and $944,000, respectively.

These figures contribute to a severe affordability crisis. Statewide, projections for 2026 indicate that only 15% of California families can afford a median-priced home. Decades of underbuilding have created a persistent housing gap, meaning that even with mortgage rates expected to gradually fall, the primary barrier for many aspiring homeowners remains the substantial upfront cost of a down payment.

“We know how challenging it can be to purchase a home,” said Mishel Kaufman, RCU Chief Operating & Risk Officer and RCUCF president. It is this specific challenge that the DPA program is designed to address, providing a crucial bridge over the financial gap that keeps many residents in a cycle of renting.

How the Redwood Credit Union Program Works

Unlike a traditional loan, the RCUCF program offers a forgivable down payment assistance grant. Eligible RCU members can receive up to 5% of the home's purchase price, capped at $25,000. This assistance is structured as a zero-interest loan that is forgiven over time. Forgiveness begins in the sixth year after closing and is completed by the tenth year, provided the homeowner remains in the property and compliant with program terms.

“We founded RCUCF to ensure we can respond when our members and communities need us most, including expanding access to housing,” said RCU President and CEO Brett Martinez. “Programs like DPA empower people to achieve their dreams and build lasting financial resilience.”

To qualify, applicants must be first-time homebuyers, a designation defined as not having owned a home in the preceding three years. They must also complete a homebuyer education course and meet county-specific income limits. The goal is to equip new homeowners not just with financial assistance, but also with the knowledge to succeed long-term.

A Growing Trend in a Challenging State

Redwood Credit Union's initiative is part of a larger, necessary trend across the Golden State. California currently leads the nation with over 350 distinct DPA programs offered by various providers. These programs have become what housing experts call “one of the most practical tools” for addressing affordability.

The average DPA benefit in California is around $18,000, which can significantly lower a borrower's loan-to-value ratio, making them a more attractive candidate for a mortgage. The programs vary widely in their structure. The state’s high-profile “California Dream For All” program, for instance, offers a shared appreciation loan of up to 20% of the purchase price, which is repaid with a portion of the home's increased value upon sale. While immensely popular, its lottery-based system means demand far outstrips the available funding.

Other models, like RCU's forgivable grant, offer a different path. These programs also challenge the misconception that assistance is only for low-income households. Research shows that 62% of DPA programs in the state have income limits exceeding $100,000, acknowledging that even middle-income families struggle to save for a down payment in high-cost areas.

More Than Just a Grant: The Community Model

The DPA program is deeply rooted in Redwood Credit Union’s identity as a not-for-profit financial institution. It's managed by its 501(c)(3) charitable arm, the RCU Community Fund, which has a long history of stepping up for the North Bay. Since 2015, the fund has distributed over $37 million for community support, including extensive disaster relief during devastating regional wildfires. Critically, RCU ensures that 100% of donations go directly to community programs, with the credit union covering all administrative costs.

This community-centric approach extends beyond the grant itself. The Sharmas credited the personalized support they received from the RCU team, particularly their loan officer, Misty, for making a daunting process feel manageable. “She has been extremely kind and patient throughout the process and made us feel part of their family,” Amit Sharma said.

This combination of direct financial aid and human support embodies the program’s ultimate goal. For the Sharma family and twelve others, it has meant the difference between being perpetual renters and becoming homeowners with a tangible stake in their community.

“It means everything,” Sharma reflected. “We have an emotional connection to this community, and now we have roots here.” He and his wife encourage others in their former position to explore the program, calling it “a lifeline for families who need a little help in realizing their American dream.”