CITY OF LOS ANGELES HOUSING DEPARTMENT (LAHD)
2011 LOW INCOME PURCHASE ASSISTANCE (LIPA) PROGRAM 

The City of Los Angeles Housing Department (LAHD) offers purchase assistance financing to eligible first-time, low income homebuyers seeking to purchase a home in the City of Los Angeles.  LAHD provides assistance in the form of a deferred loan for purchase assistance which includes down payment, closing costs and acquisition financing.

LAHD LOAN LIMITS

 *  Up to $60,000 for purchase assistance, down payment and closing costs (loan funds may be used to cover closing costs up to 5% of the purchase price).

 * Up to $5,000 for lead-based paint stabilization (if needed) for homes built before 1978. 

LAHD will perform a Lead Visual Assessment of all homes built before 1978 to determine if potential lead-based paint hazards exist.  If it is determined by LAHD’s inspectors that the paint stabilization will cost more than $5,000, the project will be deemed not feasible by LAHD.

PROGRAM REQUIREMENTS

*  Applicant must be a first-time homebuyer, defined as someone who has not had an ownership interest in any real property at any time during the last three (3) years. 

*  Applicants must attend an 8-hour Homebuyer Education Class provided by one of LAHD’s Approved Homebuyer Education Providers (see Approved List).

*  Applicants must occupy the property as their primary residence.

*  Total household income of all adults 18 years of age or older who will be living in the home must be at or below the limits shown on the table below.

*  Applicants must be a U.S. Citizen, lawful permanent resident alien, or other qualified alien.

*  If eligible, Applicants who apply for the LIPA Program will also be required to apply for a Mortgage Credit Certificate (MCC).

2011 MAXIMUM INCOME LIMITS

(For larger household size limits, please contact LAHD)

MAXIMUM VALUE / PURCHASE PRICE LIMIT:         $408,500

           LAHD LOAN TERMS

*  Deferred, requiring no monthly payments.

*  Shared Appreciation applies to the LAHD purchase assistance loan.

*  Three percent (3%) simple interest will be charged on the paint stabilization loan.

*  Loan is due on sale, title transfer, first mortgage repayment, or in 30 years.

*  Refinancing of first mortgage is allowed by LAHD under certain conditions.

            DOWN PAYMENT REQUIREMENT

*  A minimum of one percent (1%) of the property purchase price is required as down payment.  The one percent (1%) must come from the Borrower’s own funds.  Please be aware that the Borrower may be required to contribute more than 1% of their own funds towards the down payment to complete the purchase.

             ELIGIBLE PROPERTIES

*  Property must be located in the City of Los Angeles.

*  Approved short sales/pays, Foreclosed and REO Properties and Regular Sales. 

*  One unit, single family residences including town homes and condos.

*  Property cannot be occupied by tenants.

*  All properties applying under the LIPA program will be inspected by LAHD.  LAHD does not charge for the property inspection.  All properties must pass the LAHD inspection to be feasible.  Any items that are required to be corrected or repaired on the property, excluding up to $5,000 for paint stabilization, will need to be done either at the cost of the owner or the homebuyer and must be completed before the LAHD application is submitted to LAHD.

HOW DOES THIS PROGRAM WORK?

LAHD provides purchase assistance up to a maximum of $60,000.  LAHD’s loan provides the difference between the purchase price plus closing costs (up to 5% of sales price) and the amount of the buyer's first mortgage loan, down payment and other funding sources. In addition to the Purchase Assistance Loan, LAHD will lend the Buyer funds for lead-based paint stabilization (if needed).

Example:

        Purchase Price of Home:                                                                           $300,000

        Buyer's Closing Costs:                                                                               $    9,000    

TOTAL FUNDS NEEDED:                                                                       $309,000

Funds Available:                      

First Mortgage Amount (for which buyer qualifies):                              $244,000

Homebuyer Down Payment (1% of purchase price)                           $    3,000

LAHD  Purchase Assistance Loan                                                     $  60,000

Family Gift or other source                                                                   $   2,000

TOTAL FUNDS AVAILABLE:                                                                $309,000

Total LAHD loan in the above example is $60,000.

CONTACT WOLF. V PARLAR AT 310 409 3649 AND YOU WILL BE REFERRED TO  AN APPROVED LENDER THAT CAN ASSIST YOU WITH FINDING OUT IF YOU QUALIFY FOR THIS PROGRAM.