Discover the First-Time Homebuyer Program in LA: Your Guide to Los Angeles Homeownership Today

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Does Los Angeles have a first-time homebuyer program? Yes, and there are two of them. The City of Los Angeles Housing and Community Investment Department (HCIDLA) offers a program to help first-time home buyers, and so does the County of Los Angeles through the Los Angeles County Development Authority (LACDA).

One important thing to remember about most first-time homebuyer programs: it’s not always the case that an applicant has never bought or owned a home before. You must not have owned a home during the last three years to qualify for the programs. And you need to live in the house that you buy.

What Do the Different LA First-Time Home Buyer Programs Provide?

The City of Los Angeles provides the LIPA (Low Income Purchase Assistance) program, which can provide up to $140,000 for purchase assistance. LIPA funding can cover down payments and closing costs. The program can help with single-family home purchase prices up to $973,750 and condo or townhome purchases of $593,750. The LIPA program is available for home purchases within the incorporated City of Los Angeles. 

The County of Los Angeles Home Ownership Program (HOP) is a second mortgage loan for first-time homebuyers that can provide up to $85,000 or 20% of the home purchase price, whichever is less. It is a zero-interest loan with deferred payment.

Who Is Eligible For First-Time Homebuyer Programs?

The first-time homebuyer programs are intended to assist low- to moderate-income home buyers. Los Angeles County’s program eligibility limits are 80% of the County median income, which is $95,300 for a family of four. The City of Los Angeles LIPA program is also capped at 80% of the County’s median income. Still, the City also has a moderate-income first-time homebuyer program which will go up to 150% of the median income.

You can’t own any other real estate to be eligible for these programs. The programs are intended for people who are buying a home to live in.

You must also meet minimum credit score requirements, with a FICO score of at least 660.

Using a First-Time Homebuyer Program to Buy a Home in LA County or the City of Los Angeles

California Platinum Loans is an experienced, caring, and responsive mortgage broker who can assist you in accessing first-time homebuyer programs to help you buy the home you need and want. You can combine first-time homebuyer programs with a home loan that fits your needs. Contact California Platinum Loans today to get started making your home ownership dreams a reality.

California Platinum Loans

  https://californiaplatinumloans.com

Are you curious about how super jumbo mortgages work? They’re not as scary as they sound! Let’s dive into the details and make sense of it all.

People who want to buy a home in Los Angeles can need a super jumbo mortgage to finance their home purchase. “Jumbo” says “large,” but how large are super jumbo mortgages and how do they work?

We’ve put together some of the basics about jumbo mortgages and how they work.

What Are Super Jumbo Mortgages?

Jumbo mortgages are home loans in amounts that exceed the Federal Housing Finance Agency (FHFA) limits for government-backed loans. For 2023, the conforming loan limits for Los Angeles County are $1,089,300 for a single family home, ranging up to 2,095,200 for a four-unit property.

Mortgages for more than these amounts are considered “jumbo” mortgages. A loan becomes a “super jumbo” mortgage when it exceeds $650,000, although you will find some lenders who use $1 million as the base for a super jumbo mortgage. 

In Los Angeles County, with a median home sales price of over $1 million, many jumbo mortgages are also automatically “super jumbo” mortgages.

How Do Jumbo Loans Work?

Jumbo mortgages aren’t guaranteed by home loan agencies like Freddie Mac and Fannie Mae. As a result, they operate under a different set of criteria.

Whether they are a regular jumbo or a super jumbo mortgage, these loans usually require better credit than smaller mortgages. The reason? Conforming or conventional mortgages can be backed by Fannie Mae or Freddie Mac, reducing the lender’s risk. In addition, the larger mortgage amounts also carry additional lending risk.

You will also find that jumbo mortgages require a debt-to-income (DTI) ratio lower than 43%. These mortgages also typically, but not always, require good credit scores.

Do Jumbo Mortgages Have High Interest Rates?

In the past, many jumbo mortgages had higher interest rates than non-jumbo mortgages. However, Investopedia reported that in 2022, some 30-year fixed rate jumbo mortgages had lower interest rates than 30-year fixed-rate conforming mortgages.

Do You Need A High Down Payment For A Jumbo Mortgage?

In previous years, many jumbo mortgage issuers required a 30% down payment for a jumbo loan. This high level of down payment is no longer required. 

Working with an expert mortgage broker, you can determine which jumbo mortgage is right for you. Each borrower’s situation is unique. Contact California Platinum Loans today to learn which super jumbo home loan is right for you.

Sources:

Investopedia Team, “Jumbo Loan,” 21 December 2022

U.S. Department of Housing & Urban Development, “Maximum Mortgage Limits 2023”

California Platinum Loans

  https://californiaplatinumloans.com

Don’t wait until tomorrow! Is Now a Good Time for a HELOC Refinance? (Yes: And Here’s Why)

Motivation

Now is a good time for a home equity line of credit (HELOC). Changing conditions in the housing market, home prices, and listings mean that you can take advantage of these conditions and put some of the equity in your home to work, benefiting your financial goals.

According to RE/MAX’s national housing report, Los Angeles County’s home prices began dropping in 2022 compared to 2021. In December 2022, LA Metro area home prices dropped about 5%, according to Spectrum News 1. The LA area isn’t the only one that saw drops in home prices and listings in 2022. San Francisco, Honolulu, and Phoenix also saw similar home price drops.

What does this mean if you’re considering a home equity line of credit (HELOC) or home refinance? Home prices can affect how much equity you have in your home. However, if you have owned your home for a long time, you’re likely to have a lot of equity. Increased price drops could negatively influence the benefits you could get from a HELOC, so now is an excellent time to act if you’ve been considering a HELOC.

What Are Some Uses For a HELOC?

HELOCs are flexible. Some use the line of credit to pay for home improvements; others use the line of credit to pull money out to invest. You don’t have to use the HELOC all at once. You can spend it over time and only use the part you need, reserving some for another future purpose or need.

Some borrowers use a HELOC to pay for home improvements or to make significant purchases, like a boat or recreational vehicle. Others use HELOCs to pay for their children’s educational expenses. Older borrowers might use a HELOC to finance travel they’ve always wanted to take or to purchase investments that can outperform the HELOC interest rate, like annuities.

HELOCs Can Benefit You In Today’s Interest Rate Environment

The Federal Reserve is expected to continue to increase the prime interest rate, meaning that mortgage and HELOC rates will likely continue to rise. You can put your home’s equity to work for you today by contacting the HELOC experts at California Platinum Loans.

Sources: Pimentel, Joseph. “Los Angeles for sale listings, home prices drop in December,” Spectrum News 1, 19 January 2023, URL:

ReMAX, LLC. “RE/MAX® National Housing Report for December 2022,” PR Newswire, 18 January 2023, URL:

California Platinum Loans

  https://californiaplatinumloans.com