First-time homebuyers just caught a break with the LA County's Home Ownership Program's latest aid - dubbed HOP120. This program rolls out the red carpet with a 2nd mortgage loan, and it's not skimping on the funds. Eligible applicants could get their hands on up to $85,000 or snag 20% off their future home's purchase price - whichever's less generous. But here's the kicker: there's a catch. This lifeline comes in the form of down payment or closing cost assistance, as spelled out in an X post by LA County.
LA County's Home Ownership Program, HOP120, provides a 2nd mortgage loan for first-time homebuyers with assistance up to $85,000 or 20% of the purchase price, whichever is less. The loan provides a down payment and/or closing cost assistance. Learn more: https://t.co/bLWZs7Px75 pic.twitter.com/6803BAwugp
— Los Angeles County (@CountyofLA) March 24, 2024
Not to be outdone, the Los Angeles Community Development Authority (LACDA) sends out an invitation of its own with their HOP80 program alongside HOP120. Securing the deal with a Deed of Trust and Promissory Note, first-timers get a zero-interest, payment-deferred loan. And once you say goodbye to your crib, driving into the sunset, the loan needs settling. This includes a cut of the property's appreciated value, "When the home is sold, there is a transfer of title, or the home is no longer owner-occupied," the LACDA outlines on their website.
If you're eyeing those program perks, there's a gauntlet to run through first. To pocket this loan, waving 'hello' to a shiny house key, you've got to tick a few boxes. These checks ensure you're income-eligible, haven't owned a pad in the last three years, and commit to living in the place - it's all about 'owner-occupied'. No investment properties here, folks.
If these zeros have you seeing dollar signs for HOP80 or HOP120, grab a lifeline - a HOP participating lender. They're the gatekeepers who will chaperone your pre-qualification flight. An essential note for loan seekers, delivered by LACDA, confirms the obvious, "Only a HOP participating lender can submit a HOP application on your behalf." Applications are first come, first served.
