Our Real Estate Blog

HOUSING ECONOMIC RECOVERY OWNERSHIP (HERO)

March 11th, 2009 5:21 PM by Lehel Szucs

It looks like we are going to have a great new progrma available in the County of Los Angeles areas. 

HOUSING ECONOMIC RECOVERY OWNERSHIP (HERO)


Program Funds to be released Tuesday, March 17, 2009 at 9:00 a.m. 

  • HERO  loans are 0% interest loans.  No repayment is required until the home is sold, transferred, refinanced, or no longer owner-occupied.

  • Only Foreclosed or Abandoned properties are eligible.

  • Properties must be purchased at a discount of 15% from the current market appraised value.

  • Second Trust Deed Financing for families with up to 80% County Median Income will receive $75,000 or 25% of the purchase price, whichever is the lesser. Families with up to 120% County Median Income will receive $50,000 or 25% of the purchase price, whichever is the lesser.

  • Down Payment Assistance (DPA) provides down payment and/or closing costs assistance to low-, moderate-, and middle-income households for foreclosed, vacant or abandoned homes.  The maximum DPA loan is 6% of the purchase price or $10,000, whichever is the lesser.

  • Eligible properties are single-family foreclosed or abandoned homes with a maximum purchase price of $493,000, and attached or detached foreclosed or abandoned condominium/townhomes with a maximum purchase price of $394,250.

  • HERO loans are available to first-time homebuyers (borrowers) with no ownership interest in or who have not held “title” to a principal residence during the three-year period preceding the purchase of the property.

  • All properties built prior to 1978 are required to have a Visual and Lead-Based Paint Inspection and must pass the inspection prior to Loan Approval.

  • Eligible locations are those located within HERO Census Tracts only.

  • Contact a Participating Lender to submit your HERO reservation.

  • Borrower must invest a minimum of 1% of the down payment, not including closing costs.

  • Borrower must complete an 8-hour education homeownership course from an approved U.S. Department of Housing and Urban Development (HUD) counseling agency.

  • Grants up to $25,000 are available to address code violations only.

  • CDC will share equity participation for the first 5 years.

  • Mortgage Credit Certificate and Mortgage Revenue Bond programs may be available with HERO.

For additional information, please contact us at (323) 890-7034 or (323) 890-7239.  To download HERO Program Brochure, click here.


Frequently Asked Questions
Income Limits
Designated Census Tracts
Participating Lenders
Homebuyer Education Seminars

 

Posted in:General
Posted by Lehel Szucs on March 11th, 2009 5:21 PM

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