Los Angeles County HERO Program - Now available.........

By
Real Estate Broker/Owner with Omega

Los Angeles County Hero (Home Economic Recovery Ownership could be a big boon for First Time Homebuyers.

Today's Blog will feature a proactive and small solution to our housing crisis.

Just when you thought we were "need another programmed out" Los Angeles County has rolled out the HERO program - Home Economic Recovery OwnershipThe program has restrictions but they are not  unrealistic or deal killers BUT FOR THE RIGHT CLIENT this type of program could be the difference in getting a home or not.  Here are a few bullets points:

  • The spirit of the program is to provide a cure for Foreclosed (REO ONLY) and/or Abandoned homes.  The seller must agree to discount the appraised price by 15%, which is why FNMA/FHLMC properties are OK, as they have ALREADY AGREED to this component.
  • Owner-Occupant ONLY -
  • Income limitations - example uses income of $5,000 per month which is OK.
  • Debt to Income CANNOT exceed 42% UNDER ANY CIRCUMSTANCE.
  • The program is Census Tract driven, which means it is targeted for specific neighborhoods in Los Angeles' 5 county districts.  EACH DISTRICT HAS PARTICIPATING PROPERTIES.
  • Program has Down Payment Assistance (DPA) component up to $10,000.  Example listed below provides borrower $858.25 which can be used towards closing cost - because 1% minimum down does not use all of DPA.
  • Borrower must contribute 1% of SALES PRICE (regardless of program used) from THEIR OWN PROCEEDS.
  • HERO component is silent 2nd, up to $75,000.  Example below uses $53,775.

hero worksheet

 

hero spec sheet

The bottom line is it deals with Foreclosed (must be REO/Bank OWNED) or Abandoned stock and participants can NOT HAVE OWED a property during the past 3 years.  My advice is for those wanting to purchase (starter) this could be their ticket.  The program does have limitations but the bottom - line is YOUR HOME IS WHAT YOU MAKE IT.

Finally, there are other components but I support the spirit of the program because it does address a population (property types as well as borrowers) who may not otherwise be in the market.  IT IS NOT A CATCH-ALL, but like the Economic Stimulus, Housing Recovery and other programs the adage "something is better than nothing" applies.

(Funding is limited and will be available after March 17, 2009)

 

 

 

 

______________________________________

Active Rain BadgeFred Thomas, III VP, CB

Vice President, Chief Bloggeroligist

Omega Capital Financial, Inc.

______________________________________

 

 

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Anonymous
Jason Wilson

What are census tracts and how can I see if a property I am looking at qualifies?

JW

Mar 14, 2009 11:06 PM #1
Rainmaker
418,649
Regina P. Brown
California Coast & Country Homes, Inc. - San Luis Obispo, CA
e-Pro Realtor

Fred, what a great opportunity for first-time home buyers in LA! 

Mar 15, 2009 11:20 PM #2
Rainer
51,056
Omega Omega
Omega - Glendale, CA

RB - thanks again for stopping by and chiming in.  Yes, the program could be a great opportunity for "the serious first timer" so probably like you, these types of programs (although limited) do a good job of turning the discussion into "buying something."

Cheers

Mar 15, 2009 11:31 PM #3
Anonymous
maria t gonzalez

I am interest in buying a home in Palmdale ca but I need assistace with down paymentn so I can cualify for a at least 80k loan

Aug 18, 2010 06:04 PM #4
Anonymous
Amari McKinney

I am interested in buying a house in Carson, California, Los Angeles County. The address is 19012 Galway Ave., Carson, CA 90746. I would like to know what kind of assistance I can recieve as a first time home buyer. Thank you for your time and consideration.

Dec 03, 2011 07:01 PM #5
Anonymous
Meeka Davis

I would like to attend a session.  When is the next available course in LA area or Riverside?

Mar 13, 2012 02:07 PM #6
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Rainer
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Omega Omega

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