FIRST TIME BUYER OPTIONS IN LOS ANGELES & VENTURA COUNTIES - PART 3: Down Payment Assistance Bridges the Gap to Homeownership

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Mortgage and Lending with Los Angeles & Ventura Counties in CA

 

As the next part of my continuing series of affordable loan options for first time buyers here in the LA & Ventura counties, I want to now present the various down payment assistance (dpa) programs that are available to first time buyers here in LA & Ventura counties. 

For many low-medium income first time buyers here in LA & Ventura counties, going with an FHA loan program is their only option.  Partnering their FHA loan with a dpa program allows them to not only reduce their down payment requirement but it also allows them to keep their payments at an affordable level. 

 

My favorite dpa program is the City of Simi Valley First Time Buyer Program.  Basically, qualified low-medium income, first time buyers can receive up to $50,000 per bedroom in down payment assistance.  The down payment assistance comes in the form of a "silent second" so borrowers make no payments on it for as long as they hold the loan. 

Just recently, I had the pleasure of qualifying a family of five for this program.  This family had spent the past nine years renting a small three bedroom apartment and the ability of buying their own home with a yard for the children to play in is an absolute dream comes true. 

This family is looking to purchase a four bedroom home and they're approved for up to 418,600k, however, their payment will only be based on a loan amount of only 218,600k.

Furthermore, through a special arrangement with the County of Ventura Tax Assessor Board, the property taxes for the program participants are based on the base loan amount and not the sales price, which is just another way borrowers are able to keep their housing payments affordable.

In LA county, low-medium income borrowers have two different dpa programs to choose from: HERO & NSP.  HERO is offered by the LA Community Development Commission (LACDC) and NSP is offered by the LA Housing Department.

Both programs offer up to 50k in down payment assistance for medium income borrowers and up to 75k in down payment assistance for low income borrowers. 

Both programs are specifically designed to restore and stabilize neighborhoods that have been devastated by foreclosures so assistance for programs is strictly limited to vacant foreclosures. 

Furthermore, NSP allows up to another 50k to be used towards repairs and upgrades after the close of escrow. 

Just recently, I had the pleasure of reserving funds for an absolutely lovely couple who are starting their family and they wanted a place big enough to raise a couple of kids.  They also wanted to find something close to where they work in the San Fernando valley because they didn't want to spend hours a day commuting anymore. 

Fortunately for them, there are several eligible areas in the valley (with new areas being added all the time) and they found a nice 4bd/2ba home on a huge lot in the north valley with a great view of the mountains from the backyard along with several fruit trees.  It's perfect for them and their future family.

This post is the third in my series of affordable loan options available to first time buyers here in LA & Ventura counties.  Check back for the next post in the series where I address how buyers here in LA & Ventura counties can still get 100% financing.  Until then, check out my first two posts on affordable home loan options here in LA & Ventura counties.

FIRST TIME BUYER OPTIONS IN LOS ANGELES & VENTURA COUNTIES - Part 1: FHA is the Best Option for First Time Buyers

FIRST TIME BUYER OPTIONS IN LOS ANGELES & VENTURA COUNTIES - PART 2: FHA 203k is the Best Option for Many First Time Buyers in Today's REO Market

FIRST TIME BUYER OPTIONS IN LOS ANGELES & VENTURA COUNTIES - PART 4: 100% Financing Still Exists for Some Buyers

If you're interested in purchasing your first home here in LA or Ventura counties, contact me about affordable home loan options that you may be eligible for.

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

 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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Tags:
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Rainmaker
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Karen Pierce
Karen Pierce | Housing Counselor |Oregon - Medford, OR

Hi Donne - Wow...$50,000 per bedroom is a nice bit of assistance for the first time home buyer looking in Simi Valley who meets the program's criteria. Wonderful explanation you are providing to them on the various down payment assistance programs in your area.

Aug 17, 2009 10:37 PM #1
Rainmaker
599,096
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Karen,  At 50k a bedroom, the Simi program is one of my favorite programs because it offer the most assistance and in Simi low-medium income people really need it.  Ventura county is a high-cost county, even more so than LA county.

Thx for stopping by; I really appreciate it.

Aug 18, 2009 12:42 AM #2
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Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
Broker/Owner, Integrity Real Estate Services -IDAB

Great information for your area.  That's a lot of assistance! 

Aug 18, 2009 07:41 AM #3
Rainmaker
599,096
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Judi - Around here, low-medium income first timers need all the assistance they can get.  I don't know what your market is like but our market is really hard for these types of buyers and they are literally getting shoved out of our market by all cash investors.  It's just devastating how much of our inventory is getting scooped up by investors and REIT's, who by the way, are posing as banks, which they ARE NOT!  That's a post for another time.

Aug 18, 2009 11:15 AM #4
Rainmaker
1,286,163
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Donne,

Those kind of programs could almost get me to move to southern California.  I wish we had something like that locally.

Aug 18, 2009 11:51 AM #5
Rainmaker
599,096
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Gene - My clients and I are so grateful that these programs are available too.  For many of my clients, it's the only way they are ever going to own a home.  Sorry to hear that your market doesn't have any programs like this but you might want to check out the following link for an NSP near you.

CA NSP Grantee Contacts

Aug 18, 2009 11:58 AM #6
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Rainmaker
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Donne Knudsen

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