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DOWN PAYMENT ASSISTANCE ELIGIBLE FOR LOS ANGELES COUNTY REO'S

As part of HUD's new Neighborhood Stabilization Program (NSP), the Los Angeles Housing Department (LAHD) is offering down payment assistance to eligible homebuyers.

The NSP was developed to stabilize communities that have suffered from foreclosures and abandonment. NSP offers deferred payment second mortgages to homebuyers seeking to acquire a foreclosed or abandoned property. It also provides deferred payment loans to repair blighted properties after they have been purchased.

Program Requirements:

Eligible homebuyers must not presently have an ownership interest in any real property and they must occupy the property as their primary residence.
Eligible homebuyers must also attend and complete an eight (8) hour homebuyer education class.
A minimum of 1% of the purchase price is required as down payment. The one percent (1%) must come from the borrower's own funds.
Eligible buyers must meet NSP maximum income guidelines limits.

For more info on the eligible NSP areas or on qualifying for the program, contact me at 805.2069123 or donne4loans@earthlink.net

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Donne Knudsen

Realtor® - CalState Realty Services

DRE#: 01364050 / NMLS#: 249822

805.2069123

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Serving low-medium income individuals and families as well as first time buyers with both their real estate as well as their mortgage needs including down payment assistance

Los Angeles County -- Ventura County

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Posted by Donne Knudsen CalState Realty Services on 08/01/2009 12:15 AM

Comments (7)

Down Payment Assistance in the Home Buying Channel

down payment assistance, los angeles county, foreclosures, reos, neighborhood stabilization program, nsp, los angeles housing department

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7 Comments on DOWN PAYMENT ASSISTANCE ELIGIBLE FOR LOS ANGELES COUNTY REO'S

AUG

2009

Each of our counties has the same program. We're trying to process a couple of the sales now.

If more townships offer this program it will help in the recovery.

Lenn - I'm also just about to reserve my first ones too; I have two clients whose offers were just verbally accepted and we're just now waiting for the bank addendums.

I don't know what it's like in your market but here in LA County, two of the challenges with this program was the 5% discounted sales price, which has now been reduced to 1% and the number of REO's in NSP areas (our market is driven by short sales). I just found out that LAHD is going to be designating more eligible areas. YEAH! This will definitely make the program more appealing to more prospective homebuyers.

Gita - It is unfortunate that these funds are restricted to very specific areas. While LA County has received 33M in NSP funds, Ventura County (adjacent to LA County) has received absolutely no NSP funds. It's quite discouraging for many prospective homebuyers who wish to move from LA County to Ventura County.

One of the criteria for the funds is that they must be used to stabilize blighted areas in accordance to some formula designed by HUD to determine the amount of need a county needs. Areas scoring a 7-10 on the this particular scale are the areas that become eligible for NSP funds. Obviously, in this case, LA County fell within the need basis and Ventura County did not.

Donne. We have the same 1% discount and serious competition from investment buyers.

Sad to say, I haven't see a government program yet that didn't have some deal killers in the guidelines.

AUG

2009

Lenn - while some of the program guidelines have made it more challenging to get more people and properties qualified, one of the other major obstacles to this great program is the insane number of investors out here right now, literally swooping up all the lower end properties.

It's absolutely whacked now, Lenn. Around here, the term "best and highest" no longer has any credibility. So often, many of my first time buyer clients financed offers have been better and higher that the lower all cash investor offers and the banks will reject my clients better and higher offers for the lower cash offers. What the #%!!?

SEP

2009

Does this program include the city of Encino?

Ayu - First and foremost, thx for stopping by and asking about NSP; I appreciate it. I believe there is a small section that I think borders Encino and Sherman Oaks. Contact me privately and I will email you the eligibility map.