lipa - Los Angeles Housing And Community Investment Department
Transcription
lipa - Los Angeles Housing And Community Investment Department
CITY OF LOS ANGELES HOUSING AND COMMUNITY INVESTMENT DEPARTMENT (HCIDLA) LOW INCOME PURCHASE ASSISTANCE (LIPA) PROGRAM The City of Los Angeles Housing and Community Investment Department (HCIDLA) offers purchase assistance financing to eligible first-time, low income homebuyers seeking to purchase a home in the City of Los Angeles. HCIDLA provides assistance in the form of a deferred loan for purchase assistance which includes down payment, closing costs and acquisition financing. HCIDLA LOAN LIMITS Up to $60,000 for purchase assistance, down payment and closing costs (loan funds may be also used to cover closing costs up to 5% of the purchase price). PROGRAM REQUIREMENTS Applicant must be a first-time homebuyer, defined as someone who has not had an ownership interest in any real property at any time during the last three (3) years. Applicants must have a middle FICO credit score of at least 620. Applicants must attend an 8-hour Homebuyer Education Class provided by one of HCIDLA’s Approved Homebuyer Education Providers (see Approved List). Applicants must occupy the property as their primary residence. Total household income of all adults 18 years of age or older who will be living in the home must be at or below the limits shown on the table below. Borrower must be a U.S. Citizen, lawful permanent resident alien, or other qualified alien. If eligible, Applicants who apply for the LIPA Program will also be required to apply for a Mortgage Credit Certificate (MCC). LIPA Rev: 6.1.15 2 2015 MAXIMUM INCOME LIMITS Household Size Annual Household Income 1 person $46,500 or less 2 people $53,150 or less 3 people $59,800 or less 4 people $66,400 or less 5 people $71,750 or less 6 people $77,050 or less 7 people $82,350 or less 8 people $87,650 or less (For larger household size limits, please contact HCIDLA) MAXIMUM VALUE / PURCHASE PRICE LIMIT: Single Family Residences: $456,000 Condominiums: $380,000 HCIDLA LOAN TERMS Deferred, requiring no monthly payments. Shared Appreciation applies to the HCIDLA purchase assistance loan. Loan is due on sale, title transfer, first mortgage repayment, or in 30 years. Refinancing of first mortgage is allowed by HCIDLA under certain conditions. DOWNPAYMENT REQUIREMENT A minimum of one percent (1%) of the property purchase price is required as down payment. The one percent (1%) must come from the Borrower’s own funds. Please be aware that the Borrower may be required to contribute more than 1% of their own funds towards the down payment to complete the purchase. ELIGIBLE PROPERTIES Property must be located in the City of Los Angeles. Regular Sales, Foreclosed and REO Properties and Approved short sales/pays. One unit, single family residences including town homes and condos. Property cannot be occupied by tenants. All properties applying under the LIPA program will be inspected by HCIDLA to ensure the property meets all applicable State and local housing quality standards and code requirements. Additionally, HCIDLA will perform a Lead Based Paint Visual Assessment on the property to identify deteriorated paint in the homes. HCIDLA does not charge a fee for the property inspection. All properties must pass the HCIDLA inspection to be feasible. Any items identifying by HCIDLA that are required to be corrected or repaired on the property will need to be done either at the cost of the owner or the homebuyer and must be completed before the HCIDLA application is submitted to HCIDLA. LIPA Rev: 6.1.15 3 HOW DOES THIS PROGRAM WORK? HCIDLA provides purchase assistance up to a maximum of $60,000. HCIDLA’s loan provides the difference between the purchase price plus closing costs (up to 5% of sales price) and the amount of the buyer's first mortgage loan, down payment and other funding sources. In addition to the Purchase Assistance Loan, HCIDLA will lend the Buyer funds for lead-based paint stabilization (if needed). Example: Purchase Price of Home: Buyer's Closing Costs: TOTAL FUNDS NEEDED: $295,000 $ 9,000 $304,000 Funds Available: First Mortgage Amount (for which buyer qualifies): Homebuyer Down Payment (1% of purchase price) HCIDLA Purchase Assistance Loan TOTAL FUNDS AVAILABLE: $241,050 $ 2,950 $ 60,000 $304,000 Total HCIDLA loan in the above example is $60,000. HOW DO I START? Contact one of HCIDLA’s Participating Lenders listed at the end of this publication to get pre-qualified for a first mortgage and HCIDLA loan. As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services and activities. LIPA Rev: 6.1.15 4