From Aging Trailers To New Homes: Low-Interest Loans Open Door To Homeownership In SMC

REDWOOD CITY, CA — A San Mateo County loan program is helping residents of local mobile home parks replace aging units with new manufactured homes, giving some families a path to homeownership without a down payment.

Jaime Prieto Diaz and his wife, Migdal Ibarra, moved into their new home in North Fair Oaks about six months ago after receiving a low-interest loan through the county-funded Mobile Home Loan Program.

“It gives us the opportunity to have something that belongs to us,” Diaz said. “It’s not a big dream, but it’s a dream come true.”

The program provides loans to lower-income residents of seven mobile home parks in unincorporated San Mateo County. The county initially committed $2 million in 2024 for 20 loans, all of which were issued.

The Board of Supervisors approved another $2.4 million in June for about 20 additional loans. The maximum loan increased to $115,000, with interest rates capped at 4 percent and repayment terms of up to 30 years.

The program requires no down payment for qualifying households earning no more than 80 percent of the area median income.

The program aims to offer a path to homeownership in an area where a family of four earning $168,100 a year is considered to be low income by the California Department of Housing and Community Development. In San Mateo County the median home sale price reached $2.2 million in July 2026, according to the California Association of Realtors.

“Everyone deserves a home that is safe, dignified and secure, regardless of their income,” said Supervisor Lisa Gauthier, who represents District 4 where four of the seven eligible mobile home parks reside. “For a family living in an aging trailer, replacing it with a new manufactured home can be life-changing. This program helps make that possible while preserving an important source of naturally occurring affordable housing.”

Diaz said he learned about the program while doing laundry at his mobile home park. He contacted Alexander Waggoner, a program manager with the Housing Endowment and Regional Trust, or HEART, and soon received an application.

Weeks later, Waggoner called with the news that the couple could begin choosing a new home.

Their monthly loan payment is less than $400. The new home also gives their four grandchildren space to stay when they visit.

Another North Fair Oaks couple, Lizeth Sanchez and Ruben Alvarez, also used the program to replace an older travel trailer.

“Honestly, it feels so much better,” Sanchez said. “You live more comfortably. You have more space.”

Their loan payment is under $400 a month, while their total monthly housing costs, including space rent and other expenses, are about $1,500.

The county says the program is intended to preserve mobile home parks as a source of naturally occurring affordable housing while allowing residents to replace aging units with modern manufactured homes.

“Everyone deserves a home that is safe, dignified and secure, regardless of their income,” Supervisor Lisa Gauthier said.

HEART expects loan repayments to replenish the fund and eventually create a self-sustaining source of financing for future borrowers. The organization is also seeking another $3.5 million from cities and philanthropic partners, which could support roughly 30 additional loans.

Learn more at smcgov.org and heartofsmc.org.