Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
I was just replying to the post by Aaron Norris regarding some assistance programs for moderate income folks. Both LA County and LA City have programs for this. Now moderate income in LA can be over 100k. You go to some weekend home owner classes and learn how to own a house:)
Here is one of the links but if you are looking to buy this might be something worth investigating more for both LA city and county areas.
@Matt R. on the page it mentions FHA or VA as the loan type. How is this different?
I don't qualify, but I'd like to use it as an education tool for possible new clients with I get my RE license.
Generally assistance like this is intended for those that are buying a primary residence, which is what FHA and VA loans are also generally intended for. Investors for example, most likely wouldn't qualify based on income, but if somehow they did the counties generally don't want to give them down payment assistance.
I don't know any of those certain details about the programs. I assume the loan part is just like anything else. It looks like a great deal though. I did come across someone who did the county one and purchased a 400k house with 20k out of pocket. thx.
@Davon Lowery Cool Davon, this is definitely under the radar. They don't advertise as I think funds are limited and they run out each year. But right now it appears funds are ready.
@Matt R. on the page it mentions FHA or VA as the loan type. How is this different?
I don't qualify, but I'd like to use it as an education tool for possible new clients with I get my RE license.
Generally assistance like this is intended for those that are buying a primary residence, which is what FHA and VA loans are also generally intended for. Investors for example, most likely wouldn't qualify based on income, but if somehow they did the counties generally don't want to give them down payment assistance.
Adam
For sure Adam, these are not intended for investors that way. However, this could get the foot in the LA door as a start. There are many LA investors who just rent now. I am thinking one could buy one and save on rent as is still. Maybe use the eventual equity option or convert to LA rental down the road. Sort of a hybrid version of house hacking that way. I am not sure what those restrictions are. thanks!
Thanks @Matt R. so it looks like it's another version of a FHA loan but administered by a local identity rather than federal/government.
Thanks for sharing!
Hey Shane,
You would still use a FHA or VA loan, but this is actual assistance, or a grant, to people to help with down payment and closing costs. I live in Las Vegas, so I'll use the NV program as an example because I'm actually familiar with it. It works something like this:
You are a renter, and you want to buy a house. You don't make a lot of money, and you can manage to save a little bit each month, but nothing that would make a meaningful down payment. Maybe you don't have a high level of education, or no skills, depressed labor market, whatever the situation is, you are usually required to have low income (their term not mine, and subjective depending on where you live) to get the assistance (In NV income reported on your mortgage app must be less than $95k). The benefit is up to 4% of purchase price, so you can see if you have decent credit and end up with a 3.5% down payment on an FHA loan, you could use this assistance to essentially purchase a house with $0 down.
@Matt R. on the page it mentions FHA or VA as the loan type. How is this different?
I don't qualify, but I'd like to use it as an education tool for possible new clients with I get my RE license.
Generally assistance like this is intended for those that are buying a primary residence, which is what FHA and VA loans are also generally intended for. Investors for example, most likely wouldn't qualify based on income, but if somehow they did the counties generally don't want to give them down payment assistance.
Adam
For sure Adam, these are not intended for investors that way. However, this could get the foot in the LA door as a start. There are many LA investors who just rent now. I am thinking one could buy one and save on rent as is still. Maybe use the eventual equity option or convert to LA rental down the road. Sort of a hybrid version of house hacking that way. I am not sure what those restrictions are. thanks!
No kidding! It is really attractive to people like me who want to move back to So. Cal but can't imagine paying the price for RE. I still wouldn't do it, but only because of the much higher cost of living, taxes, etc. Living in Las Vegas saves me enough to take a long weekend trip to So. Cal about once a month, I have family spread around the area, so it works for me, besides any more than once a month and I think they'd drive me nuts.
It looks like a great incentive, especially given that their idea of low income is $99k for a single income household. There's single living people everywhere in LA that would easily make less than this.