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ATTENTION LOS ANGELES COUNTY FIRST TIME BUYERS: New HERO Program Offer More Eligible Areas for Down Payment Assistance

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Mortgage and Lending with Los Angeles & Ventura Counties in CA

ATTENTION LOS ANGELES COUNTY FIRST TIME BUYERS:  New HERO Program Offer More Eligible Areas for Down Payment Assistance 

Last year, the Los Angeles Community Development Commission (LACDC) launched their new Housing Economic Recovery Ownership (HERO).  The HERO Program was designed to offer financial assistance to first-time homebuyers in purchasing a vacant, abandoned and foreclosed home located in designated census tracts. 

The HERO program offers eligible applicants interest free loans for up to $75,000.  Payments for these "silent seconds" are deferred until the home is sold, refinanced, title transferred or no longer owner occupied.  In other words, you don't have to pay back the money until you sell, refinance, move out or die. 

So how does one qualify for this assistance?  Well, here are some of the basic eligibility requirements: 

  • Applicants must be first time buyers - no previous homeownership in the last three yrs
  • Only purchased foreclosed (REO) or abandoned properties are eligible
  • There are income guidelines but basically, you must be a low-medium income borrower
  • Sales prices limits are $493,000 for single family residences and $394,250 for condos/townhomes
  • Property must be located within a HERO designated census tract
  • Buyers must contribute a minimum of 1% of the down payment, which may be a gift.
  • Buyers must complete a HUD approved homeownership education course. 

Another caveat for this program is that the property must be purchased at a discount of 1% from the current market appraised value.  One of the challenges with this program was that many of the designated census tracts were in the unincorporated areas of the county where there were little to no active and eligible properties listed. 

Now the LACDC has launched the HERO State program that has the same benefits and requirement as the initial HERO program but with the HERO State program, there are 15 participating cities with designated census tracts in the incorporated areas of these cities. 

For example, here in the San Fernando valley of Los Angeles county, there were only a few designated census tracts north of the 118 freeway in the cities of San Fernando and Altadena.  Now, with the HERO State there are several designated census tracts in the cities of Burbank and Glendale as well as some in Pasadena too.  Applications can only be submitted by approved lenders who have been through the HERO training from the LACDC. 

If you're looking to purchase your first home in the San Fernando, Santa Clarita and/or Antelope valleys, please feel free to contact me at 805.5278554 or donne4loans@earthlink.net regarding eligibility requirements, available census tracts or if you just have a question.  I would love to be able to assist you with finding the most affordable loan option available to you in purchasing your first home here in Los Angeles County.

Posted by

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 Donne Knudsen

Realtor® - CalState Realty Services

DRE#: 01364050 / NMLS#: 249822 

 

805.2069123

 

E-mail   My Blog  

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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Comments (9)

Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I had to laugh out loud when I read you have to pay it back if you die.  Couldn't help myself.  Other than that, it sounds like a great program.

Mar 31, 2010 09:11 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Tammy - That was actually a direct quote from the program trainer, who was a crack-up.  It's kind of boring sitting through these program workshops with 50 other LO's for a couple of hours going through training just so that you can get put on the approved lenders list. 

Most of the instructors are about as interesting as a soda cracker.  This one we had from the LACDC was hilarious though.  Can't remember the last time I laughed so much in a training workshop.  Thx for stopping by; I appreciate it.

Mar 31, 2010 09:39 AM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

On Donne...(drum roll)... you're my HERO!!!! ;-)

Mar 31, 2010 03:35 PM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Donne:  I wonder if Riverside County has this.  I will have to check it out.

Mar 31, 2010 04:01 PM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Karen - You're so sweet!  Thx for the compliment.

Jane - I couldn't say whether other counties are offering HERO programs because I do know that the HERO program here is funded by the LACDC.  However, you may want to check out your county's NSP funds and program.  That is a state funded program for most CA counties.

Thx for stopping by ladies; I appreciate it.

Apr 01, 2010 04:15 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Well, I think if you die, Tammy, your estate pays it off. But excellent program for first-time home buyers. I know there are a few local programs for Sacramento but none exactly like this one.

Apr 03, 2010 02:32 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Elizabeth - There are so many local programs throughout CA for the first time buyer is ridiculous.  They never had any of this stuff around when I was a first time buyer, once upon a time, long, long ago.

Thx for stopping by; I really appreciate it.  Have a happy Easter Elizabeth.  :)

Apr 03, 2010 10:21 AM
Anonymous
barbara

I am soooooo overwhelmed with these programs, and dont know who to call or where to even begin....and frankly I am a bit timid on whether I should believe them or not. Can someone please direct me?!?!?!?!

Sep 30, 2010 11:20 AM
#8
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Barbara - With so many programs available, it can get confusing to the consumer who is trying to understand all the different guidelines.  I would love to talk to you about the various program guidelines and requirements.  Please feel free to call and/or email me with your questions and/or concerns and we can see which program would best suit your needs.

Sep 30, 2010 02:53 PM