LA COUNTY ANNOUNCES NEW LOAN PROGRAM TO HELP MODERATE-INCOME BUYERS PURCHASE THEIR FIRST HOME

The LACDA’s HOP80 and HOP120 Home Ownership Programs provide a second mortgage loan for first-time homebuyers with assistance of up to $85,000, or 20% of the purchase price, whichever is less.

The loans accrue 0% interest with deferred repayment and shared equity. When the home is sold, there is a transfer of title, or the home is no longer owner-occupied, the homebuyer repays the loan, plus a share of the appreciation.

To qualify, a homebuyer must be income eligible, not have owned a home in the last three years, and the home must be owner-occupied.

Eligibility

- The applicants must be income eligible.

- The applicants must be first-time homebuyers: no ownership in real estate in the past three years.

- Homebuyers must occupy the home as their principal residence.

- Applicants must invest a minimum of 1% of the down payment, not including closing costs, of their own funds.

- All applicants must complete an eight-hour homebuyer education seminar from an approved U.S. Department of Housing and Urban Development (HUD) counseling agency.

Applicants must complete an eight-hour first-time homebuyer education seminar and obtain a Certificate of Completion from a HUD-approved facilitator. The LACDA must receive a copy of the certificate before the close of escrow. For a list of HUD-approved facilitators, please go to https://hud4.my.site.com/housingcounseling/s/?language=en_US - Property cannot be occupied by tenants.

Find a home within an eligible area

- The maximum purchase price allowed for an existing or new home is $700,000 for HOP80 and $850,000 for HOP120 and includes Single-Family Homes, Condominiums, and Townhomes.

- All properties built before 1978 are required to pass the inspection before approval.

- The property is in the unincorporated area of Los Angeles County or in one of the HOP Participating Cities.

See unincorporated areas/cities in Los Angeles County by clicking the link: https://auditor.lacounty.gov/incorporated-areas-cities/ Other participating cities are:

To start the process of getting pre-qualified, contact one of the participating lenders:

Lender list is here:

For more information about the HOP120 program, you can contact the LACDA by email at HOP@lacda.org or by calling (626) 586-1853.