It provides $60,000 for all first-time home-buyers to aid them with not only the down payment on a home, but also closing costs.
These loans are financed with HOME funds via the United Stated Department of Housing and Urban Development, thus making them subject to federal regulations that are applicable.
HOP presents a 2nd trust deed loan at 0% interest and all required payments are deferred prior to the selling, refinancing, transferring or full repaying of the first mortgage.
Los Angeles County borrowers are required to fall in the low-income range ($52,220 income limit for a two-person household), have at least 1% of the down payment (not counting the closing cost) of the home, and not have owned a home or held a title to a principal residence within the previous three years prior to buying the house, which is required to be owner-occupied.
A second trust deed and promissory note are tools utilized to help obtain funding for borrowers, who also must finish an eight-hour home-buyer seminar for first-timers from an agency approved by HUD. Upon completion of the seminar by the borrower, a certificate copy must be in possession of the Los Angeles County Community Development Commission prior to the conclusion of escrow.
Existing and new construction properties are eligible for the HOP, with a maximum price of $344,000 for single-family homes, townhouses and condos. Approved short sales and real estate owned properties also qualify regarding this down payment assistance program.
Should the property have been constructed prior to 1978, it’s a required lead based paint inspection be performed and passed before the final approval of the loan.
Golden Empire Mortgage would be glad to assist you with any Los Angeles County HOP down payment assistance program inquiries. Call us at (909) 457-0257.