In Part 1, I discussed the different first time buyer and down payment assistance (dpa) programs that are available to prospective buyers here in the Los Angeles & Ventura counties.
In Part 2, I want to discuss some of the specific property qualifying requirements for the different programs that I didn't address in my post links in Part 1. Here in Los Angeles & Ventura counties, no two down payment assistance (dpa) programs are alike.
While all dpa programs are specifically geared for the low-median borrower, even the income guidelines can vary from program to program. All dpa programs are all area specific and some program areas can overlap into other areas too.
Below are the areas that each of the programs I discussed in Part 1 encompasses:
NSP - Targeted areas in Los Angeles neighborhoods are concentrated in areas where rates of foreclosed and abandoned properties are the highest.
LIPA - Los Angeles communities that are located in the incorporated limits of the City of Los Angeles. This includes the communities from the southern part of the county (Long Beach/San Pedro) all the way up to the San Fernando Valley.
Simi Valley - This is pretty self-explanatory: eligible properties in the City of Simi Valley.
CalHFA & CHF - The entire state of CA is eligible for both of these programs.
USDA - Oak View, Mira Monte, Meiners Oak, Ojai, Fillmore, Piru and some parts of Santa Paula and Ventura, Val Verde, Castaic, Frazier Park, Acton, Agua Dulce, Littlerock, Lake Los Angeles and some parts of Santa Clarita, Newhall, Valencia, Canyon Country, Palmdale, Quartz Hill, Lancaster as well as parts of San Fernando & San Gabriel valleys that are north of Interstate 210.
While most dpa programs are limited to first time buyers who haven't owned a home in the last three years, the Simi Valley dpa program will allow buyers displaced by death or divorce to qualify as a first time buyer.
Another characteristic of all dpa programs is that the properties must be either owner-occupied or vacant - no rental properties. The charters for dpa programs will not allow eligible applicants to displace occupants in tenant occupied properties.
Another criteria that all dpa programs share is that the properties must be habitable, meaning no total fixers allowed. Some programs (LIPA & Simi Valley) will even conduct their own inspections and will require additional requirements as result of property condition.
However, the Simi Valley program will allow borrowers to use some of their dpa funds to make necessary repairs (subject to approval by city inspectors) after the close of escrow. Some NSP funds are used to actually completely rehab distressed properties before offering them for sale to eligible applicants.
Lastly, LIPA requires that all condos, townhomes and PUD's must be built after 1979 and SFR's must be built after 2000. There are no other dpa programs that have this particular condition. The reason for this is because in CA, all properties built before 1979 typically have lead based paint and the Los Angeles Housing Dept (LAHD), which is the agency that administers LIPA, was having a lot of issues with bringing these properties up to new building code standards.
I hope you stay tuned for Part 3 where I will discuss the third question about the kind of documentation that is required in order to determine eligibility for one of these dpa programs.
Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting the home search. The pre-approval process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs.
Furthermore, it's absolutely vital that they work with an MLO and lender that has had experience closing these types of loan transactions. That's what I'm here for and I would love to be able to assist you in your search for an affordable home loan. If you have any questions and/or concerns, please feel free to contact me, Donne Knudsen at 805.2069123 or donne4loans@earthlink.net.
What Kind of First Time Buyer Programs are Available in Los Angeles & Ventura Counties? FAQ - #1
What Kind of Paperwork Do You Need to Pre-Approve Me? FAQ - #3
What Kinds of Things Can Go Wrong in the Loan Process? FAQ - #5
What are Impound Accounts & Why Do I Need to Have Them in Order to Close My Loan? FAQ - #6
Can You Help Me Get My Kid Get Out of My House? FAQ - #7
I'm Supposed to be Closing Next Week Can You Help Me? FAQ - #8
If I Buy a Duplex, Can I Apply the Tenants Rent Towards My Mortgage? FAQ #9
What Happens if My Appraisal Comes in Low? - FAQ #10
What is a HomePath Property and How Can I Buy One? - FAQ #11
Can I Still Get a Loan if I Don’t Have Perfect Credit? – FAQ #12
Are There Still Loan Programs Where I Don't Have to Put Anything Down? - FAQ #13
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