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.
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.