Los Angeles is approving a program to allow first time home buyers, previously priced out of the market, a chance at home ownership.
As home values and rental prices keep soaring, it's no surprise that low to middle income residents have been unable to enter the real estate market. This ongoing housing affordability crisis is finally being addressed by legislation with hopes to provide more opportunity for those who have been unable to come up with that large down payment.
City council has planned to re-open and enhance the Moderate Income Assistance Program and the Low Income Assistance Program. So what can first time home buyers expect as perks? "No monthly payment loans to help cover acquisition, down payments and closing costs. Wow! In exchange, the city retains a portion of any appreciation that the home sustains. The loan requires repayment only if the home is sold, if the mortgage is paid off, or after 30 years". Read more about that here.
This also means eligible low income residents can receive a loan for up to $90,000, while middle income participants can receive a loan of up to $75,000! This will bring new home buyers into the marketplace that have been priced out for the last 10 years and we couldn't be more excited.
20% down will no longer be necessary to close an Escrow! So what are you waiting for?
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