The County of Los Angeles is currently changing the income requirements for the Home Ownership Program, a down payment assistance program that targets moderate and low-income people. The new requirements will go into effect on June 15. Let's check to see if you're eligible!
Homeownership Program:
The Los Angeles County Development Authority (LACDA) has created the home ownership program. This grant program is supported by the U.S. Department of Housing and Urban Development (HUD) and is specifically for moderate and low-income families and those looking to become first-time homeowners.
Under the program, a maximum of $85,000 or 20% of the home price (whichever is less) can be provided as a down payment grant with 0% interest and 0 monthly payments! You only have to repay the grant if you sell the home or if the property changes hands.
If you sell the house within 5 years, you must also pay 20% of the increase in the value of the house to LACDA. If you sell after 5 years, you only have to pay back the subsidy amount.
Interested homebuyers, check to see if you are eligible!
Applicant Requirements:
lThe applicants must be first-time homebuyers: no ownership interest in real estate at any time in the past three years.
lHomebuyers must occupy the home as their principal residence.
lApplicants must invest a minimum of 1% of the down payment, not including closing costs of their own funds, with a maximum down payment of $150,000, and gift funds cannot be used.
lAll applicants must complete an eight-hour homebuyer education seminar from an approved U.S. Department of Housing and Urban Development (HUD) counseling agency. You can check the agency at: https://hudgov-answers.force.com/housingcounseling/s/?language=en_US
lProperty cannot be occupied by tenants, unless it is a Tenant-Purchaser
Other Limitations:
lTotal household income must not exceed 80% of the Los Angeles Median Income (AMI).
For example, if the family consists of a married couple, the total income cannot exceed $80,750, taking into account the income of all family members 18 years of age and older.
Compared to the previous income limit of $66,750 for a single person, the income requirements, effective June 15, have been significantly relaxed.
lThe following cities in Los Angeles County are eligible to apply.
lTypes of homes that can be purchased: Single-Family, PUD, Condominiums.
lThe maximum purchase price allowed for existing or new homes is $700,000.
lRefinance are accepted.
lUS citizens and green card holders can apply.
How to apply?
Step 1: Verify whether your household income meets the limit.
Step 2: Find a home within an eligible area.
Step 3: Contact a participating lender to obtain the pre-approval letter.
Step 4: Complete an 8-hour online course.
Remember, buyers must apply to a state-approved lending institution if they want to be eligible.
The good news is that AAA LENDINGS has become a cooperating lender for this program!
Remember, government-funded projects are on a first-come-first-serve basis and cease when funds run out!
So if you qualify, don't miss out on this opportunity. Hurry and contact
us for pre-approval!
