Los Angeles County Unveils Program for Budget-Friendly Homeownership

The Los Angeles County Development Authority (LACDA) is at the forefront of making homeownership more accessible and affordable for low- and moderate-income families through its innovative Affordable Homeownership Program. This program is designed to assist eligible homebuyers in overcoming the financial barriers to owning a home, providing them with crucial down payment assistance. This support enables aspiring homeowners to turn their dreams of owning a home into a tangible reality.

Comprehensive Financial Assistance

Under this program, LACDA extends financial aid in the form of a secondary mortgage. This unique approach allows for all payments to be deferred until the home is sold, transferred, or refinanced. In an innovative twist, LACDA becomes a partner in the homeowner’s journey, sharing a percentage of the equity gained on the property. This share is contingent on various factors present at the time of the home’s sale, transfer, or refinancing, making it a flexible and adaptive form of assistance.

Who Qualifies for the Program?

To be eligible for this program, applicants must be first-time homebuyers, defined as individuals who haven’t owned a home in the past three years. Additionally, their annual household income must align with the program’s specified income thresholds. A key requirement is that all borrowers listed on the title must undergo and complete a comprehensive homeownership counseling and education program. This program must be accredited and certified either by the U.S. Department of Housing and Urban Development (HUD) or the National Reinvestment Corporation. Furthermore, the property purchased using these program funds must be the borrower’s primary residence, ensuring that the program benefits those who are genuinely seeking a home for themselves and their families.

Income Limits for Eligibility

The program categorizes income limits into two brackets: low and moderate, based on a percentage of the area’s median income.

For the low-income category (80% of the area median income), the limits are as follows:

• 1-person household: $58,450
• 2-person household: $66,100
• 3-person household: $75,150
• 4-person household: $83,500
• 5-person household: $90,200
• 6-person household: $96,900
• 7-person household: $103,550
• 8-person household: $110,250

For the moderate-income category (120% of the area median income), the limits are:

• 1-person household: $61,400
• 2-person household: $70,150
• 3-person household: $78,950
• 4-person household: $87,700
• 5-person household: $94,700
• 6-person household: $101,750
• 7-person household: $108,750
• 8-person household: $115,750

The Affordable Homeownership Program by LACDA represents a significant step towards making the dream of homeownership a reality for many in Los Angeles County, offering a helping hand to those who need it most.