Home Buyer Program Information

The AHOP Program has been designed to meet the needs of low-income families and individuals who want to purchase a new home, but are unable to qualify without financial assistance. This program will provide a secondary mortgage for the purchase of a new single-family home. The secondary mortgage is a loan, with all payments deferred until sale, transfer, or refinancing. The Agency will share in a percentage of the equity accumulated on the property, depending upon the circumstances that exist at the time of subsequent sale, transfer, or refinancing, and federal requirements. Applicants are required to use all liquid and convertible assets for down payment and estimated closing costs except the amount totaling six months' monthly housing costs and an emergency allowance of $5,000.

1. The Applicant may not have held an ownership interest in a Principal Residence within the past three years;
2. The Applicant must occupy the acquired housing as a "Principal Residence"; and
3. Applicant must attain homeownership counseling and education from an agency accredited and certified by the U.S. Department of Housing and Urban Development or National Reinvestment Corporation. All who will be named on title must attend this training and each person must present a certificate.
4. Maximum Annual Income Limits:

The HERO Program has been designed to meet the needs of low, moderate and middle-income households who want to purchase a foreclosed or abandoned single family home, but are unable to qualify without financial assistance. This program will provide a secondary mortgage for the purchase of that home, downpayment assistance, and rehabilitation grant opportunities. The secondary mortgage is a 0% interest loan. No repayment of loan will be due until home is sold, transferred, or refinanced, or no longer- owner-occupied.

• HERO loan is available to first-time homebuyers (borrowers) with no ownership interest in or who have not held "title" to a principal residence during the three year period preceding the purchase of the property;
• Only foreclosed or abandoned properties are eligible;
• Eligible properties are single-family foreclosed or abandoned homes with a maximum purchase price of $493,000, and attached or detached foreclosed or abandoned condominium/townhomes with a maximum purchase price of $394,240;
• Eligible locations are located within HERO Census Tract only;
• Properties must be purchased at a discount of 1% from the current market appraised value;
• Second Trust Deed Financing for families with up to 80% County Median Income will receive $75,000 or 25% of the purchase price, whichever is the least; families with up to 120% County Median Income will receive $50,000 or 25% of the purchase price, whichever is the least;
• "Down Payment Assistance provides down payment and/or closing costs assistance to low-, moderate-, and middle-income households for foreclosed, vacant or abandoned homes. The maximum down payment assistance is 6% or $10,000 of the purchase price, whichever is less;"
• Grants of up to $25,000 are available to address code violations only;
• All properties built prior to 1978 are required to have a Visual and Lead-Based Paint Inspection and must pass the inspection prior to Loan Approval;
• Community Development Commission will share equity participation for the first five years; and
• Mortgage Credit Certificate and Mortgage Revenue Bond programs may be available with HERO.

1. Borrower must invest a minimum of 1% of the downpayment, not including closing costs;
2. Borrower must complete an 8-hour education homeownership course from an approved U.S. Department of Housing and Urban Development (HUD) counseling agency;

The ISRP has been designed to provide financial assistance for acquisition and rehabilitation of foreclosed residences for affordable rental housing to low-income persons. Qualified nonprofit and for-profit developers, resulting from the Request for Proposal process, are eligible to apply for secured loans to finance the acquisition, rehabilitation and related project costs of a foreclosed property. The property must be a 1 - 4 unit property and located within census tract only areas of unincorporated Los Angeles County or Participating Cities of the Community Development Block Grant (CDBG) Urban County Program. Developers must agree to operate the housing at affordable rents for a period of 55-years.

All loans have a 55-year term with no interest, and will be secured by a Deed of Trust that is first in priority. All repayments to the Commission are deferred until sale, transfer, refinancing or full repayment of the first mortgage. Available residual receipts will be divided equally between the Commission and the Developer.

• ISRP loan is available to qualified developers who wish to acquire or acquire and rehabilitate eligible properties;
• Only foreclosed properties are eligible;
• Eligible properties must be 1 - 4 unit properties;
• Eligible properties must be located within ISRP Census Tract only areas;
• Properties must be purchased, at minimum, 1% below the current market appraised value;
• Properties must be rented to households with 50% Area Median Income; and
• All properties built prior to 1978 are required to have a Visual and Lead-Based Paint Inspection and must pass the inspection prior to Loan Approval.