The HomeBuy Program provides down payment assistance ("gap" financing) to help purchase two types of homes: 1) newly constructed or newly renovated homes by developers working with the City, such properties include newly renovated homes by Enterprise Home Ownership Partners (EHOP), or 2) homes without lead based paint hazards and building code violations (called the HomeSafe Program).

EHOP, a private non-profit organization, renovates single-family homes for sale in neighborhoods throughout Los Angeles and is the largest provider of HomeBuy eligible homes. Purchasers of EHOP homes may be qualify for zero interest loans of up to $60,000 using the HomeBuy Program. Check our web site for available homes for sale.

HomeSafe provides down payment assistance to purchase homes that are free of lead based paint hazards and lack building code violations. Most houses and condominiums built after 1977 fit into this category.

SOFT SECOND LOAN FEATURES:

• The loan is called "soft" because there are NO monthly payments
• Up to $60,000 available for gap financing and closing costs
• Zero (0%) interest
• Due at sale or transfer of property, refinance, or in 30 years as a balloon payment

HOW DOES THE PROGRAM WORK?

The HomeBuy Program provides the "gap" between the purchase price (with closing costs) and the amount of the buyer's first mortgage loan and down payment. The "gap" may also provide up to 4% of the selling price towards the buyer's closing costs.

GAP FINANCING EXAMPLE

Assume you qualify for a first mortgage of $140,000 and are purchasing a home with a sales price of $190,000. In the example below, the HomeBuy loan of $51,900 assists you in making up the difference between what you qualify for and the total needed to purchase the home. HomeBuy allows you to purchase a higher priced home than you might normally qualify.

Example:



Sales Price of Home:                           $190,000
Estimated Buyer's Closing Costs:              $7,600
_________________________________________
Total Needed to Purchase:            [A]  $197,600



First Mortgage Amount
(for which buyer qualifies):                  $140,000

Homebuyer Down Payment
(3% of Sales Price):                              $5,700
_________________________________________
Total buyer contribution
before LAHD assistance:               [B]  $145,700



HomeBuy "GAP" Loan:                          $197,600
                                                    -$145,700
_________________________________________
                                 [A] minus [B]   $51,900

 

WHAT ARE THE REQUIREMENTS?

1. You must not own another home at close of escrow.
2. Effective July 1, 2002 all applicant borrowers are required to complete at least eight (8) hours of home buyer education from one of LAHD's approved providers to obtain this type of loan.
3. A minimum of three (3%) percent of the sales price from your own funds is required to be invested in your home purchase. Home buyers may provide as little as one (1%) percent down payment/investment by attending twelve (12) hours of home buyer education training from an LAHD approved provider.
4. You cannot exceed the household income limits listed below:
 

Household Size         Annual Household Income

     1 person                     30,850 or less
     2 people                     32,250 or less
     3 people                     39,650 or less
     4 people                     44,100 or less
     5 people                     47,600 or less
     6 people                     51,150 or less
     7 people                     54,650 or less
     8 people                     58,200 or less

ELIGIBLE PROPERTIES

Properties must be owner-occupied or vacant. Properties cannot be tenant-occupied.
Only 1-unit properties, single family homes, condos, town homes or planned unit developments (PUD's) are eligible.
Properties must be located within the City of Los Angeles.
Purchase price of the homes cannot exceed $237,500.
Homes without lead hazard or code violations.
Mortgage Credit Certificates (MCCs) are available to participants of this program. Please refer to the MCC flyer for more information.
 

HOW DO I START?

Contact any lender listed below to be pre-qualified for a loan. Then, start your search for a home with a real estate professional.

HomeBuy/HomeSafe Lender List

CONTACT	CITY
Philip Lipp Allwest Mortgage 800 409-0999	North Hollywood
Duly Gonzalez CalFed Lending (323) 771-9793	Bell Gardens
Rosa Moss California Bank & Trust (310) 217-6517	Torrance
Marlene Moretti Camino Real Mortgage  (818) 365-8768	San Fernando Valley
Walter Romero Family Savings Bank  (323) 290-7591	Los Angeles
Alex Del Haro First Magnus Financial (909) 598-0806 x 124	Diamond Bar
Jan Helsel First Magnus Financial (909) 598-0806 x 122	Diamond Bar
Sheri Isaacson Hawthorne Savings (310) 725-5759	Gardena
Darryl Brandon IndyMac Bank (626) 535-5812	Pasadena
Denny Draper IndyMac Bank (626) 535-5810	Pasadena
Shirlene Edmondson IndyMac Bank (626) 535-5811	Pasadena
Yolandra McClinton Inglewood Neighborhood Housing Srvs. (310) 674-3756 x 106	Inglewood
Adolph Collaso Inter Mountain Mortgage (800) 753-5626	Pomona
Mike Garcia Inter Mountain Mortgage (800) 753-5626	Pomona
Sandy English Irwin Mortgage (310) 482-0999	Los Angeles
Dennis Reynolds Irwin Mortgage (310) 380-6400	Carson
Jim Havassy Irwin Mortgage (562) 398-2008	Long Beach
Ronald Martinez LA Neighborhood Housing Srvs. (213) 381-2862 x 114	Los Angeles
Irma Sanchez LA Neighborhood Housing Srvs. (213) 381-2862 x 220	Los Angeles
Elizabeth Soriano Marina Mortgage (562) 988-1774	Long Beach
Harold Hutchinson Washington Mutual (626) 931-2032	Los Angeles
Jeffrey Clark Wells Fargo (323) 373-9404	Los Angeles

 

For more information on this program, please call:
(877) 848-5629

 

For a list of EHOP homes for sale and a list of EHOP approved lenders, please visit the EHOP website at http://www.ehop.org/

NOTE: From the EHOP page, click on the your browser's BACK button to return to this site.