Program for first time 'low income' buyers in LA (sales, 2014)

[jm1982]

I know a lot of people on here are looking to buy a property in L.A and don't have a ton of money.

Just wanted to let people know about the Low income Purchase Assistance Program (LIPA) offered by the City of L.A.

http://lahd.lacity.org/lahdinternet/...IPA2014eng.pdf

I know this program has been around for a while but when I looking into it before, they said there weren't funds for it. Now it doesn't look like that "lack of funds" message is up...but you'll want to verify w/ city to make sure.

It's basically a program where they give you a $60,000 loan towards buying a house which is deferred.
The nice part is you don't have to make payments on the amount...but you owe the city money once you sell.

It's not for everyone of course, and you need to make under

45,650max for a 1 person household, 52,200 for 2 person, 58,700 for 3 person..it goes up from there..

Max loan for Single family house is 475k..and condo 380k.

This program gives on the ability to get into a place with 1% downpayment.

There is a bit of a catch though as you agree to 'shared appreciation' .
Shared Appreciation applies to all loans. For example if a homebuyer receives a $50,000 loan from the City to purchase a home with a $200,000 sales price, the Shared Appreciation percentage would be 25% ($50,000/$200,000). Therefore upon sale, the $50,00
0 loan plus 25% of the home’s appreciation will be paid to HCIDLA


. If the appreciation on the home is less than $10,000, no shared appreciation is due.
HCIDLA
uses Shared Appreciation in
lieu of charging an interest rate to homebuyers.


Might not be for everyone, but some might be interested if they really want to get into a property and this is the only way.

http://lahd.lacity.org/lahdinternet/...IPA2014eng.pdf