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

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.

Urgent Homebuyers Alert: Take Control of Your Los Angeles Home Search Today, with This Comprehensive Guide to Mortgage Pre-Approval

If you’re looking to buy a home in Los Angeles, there are several steps you can take to be prepared and be able to buy the home you absolutely desire. One of the most critical steps is getting pre-approved for a mortgage.

The Difference Between Pre-Approval and Pre-Qualification

You may hear different terms regarding the steps you can take before you make an offer on a home or receive a mortgage loan.

Pre-qualification isn’t as in-depth a process as pre-approval. If you are pre-qualified for a mortgage loan, lenders will do a “soft pull” of your credit score to see where you fit in the credit spectrum. With your financial data, lenders can usually give you a rough idea of the loan size you can qualify for and offer a pre-qualification letter.

Mortgage pre-approval is a more in-depth process. You need to provide documentation of your income and other financial information. The mortgage lender will formally request your credit score, also known as a “hard inquiry.” They will respond with a pre-approval letter containing much more detailed information and a more accurate idea of the amount of home loan you can obtain.

What Do You Need To Get Pre-Approved For a Mortgage?

You should collect the following documents to provide to your mortgage lender:

Proof of income, which can include paystubs, self-employment documentation, and tax returns.
Proof of assets can include bank statements and other financial or property account documentation.
Credit score and credit history.
Verification of employment.
Valid government-issued identification

The mortgage lender will also look at your debt-to-income ratio. If you already have other debts, these will be factored into your pre-approval.

A mortgage pre-approval letter will help you to know how much home you can afford. It places you in a much stronger position when looking for a home to buy in Los Angeles. California Platinum Loans works with numerous lenders, including banks, non-banks, other institutional lenders, private money lenders, hedge funds, private equity, and some hard money lenders. California Platinum Loans can help you get the right type of mortgage pre-approval when the time is right.

September – U.S. Single-Family Home Prices Slows October – Single-Family Home Sales Picks Up, November – Mortgage applications still down despite falling rates

02 Dec 2022
California Platinum Loans
Luxury Home, Mortgage Rates
Comments Off on September – U.S. Single-Family Home Prices Slows October – Single-Family Home Sales Picks Up, November – Mortgage applications still down despite falling rates

Single-Family Home Sales Pick Up In October

Despite continuing high mortgage rates and home prices, sales of new single-family homes in the U.S. increased in October.

According to the most recent report from the Commerce Department, new home sales increased 7.5% in November to a seasonally adjusted annual rate of 632,000 units. The number of units sold in September decreased from the previously stated 603,000 units to 588,000 units.

Analysts surveyed by The Wall Street Journal predicted a 5.5% decline in new-home sales. This is only one month of data, so it’s still too early to declare that this might signify a market turning point.

Compared to September, the median sales price of new homes sold in October increased to $493,000 from $455,700. According to the Commerce Department, that is a 15.4% increase from a year ago. There were also 1.5% more new residences available for purchase. At the present sales rate, that translates to an 8.9-month supply. From a 5.7-month pool in January, this is an increase and far above the anemic inventory that existed in 2020 and 2021.

Regionally, the Northeast and the South saw the most significant sales increase. According to the survey, sales decreased in the South and the Midwest.

U.S. Single-Family Home Prices Slow Again In September

According to highly watched surveys released Tuesday, demand for single-family homes in the U.S. decreased in September due to increased mortgage rates.

In September, the S&P CoreLogic Case Shiller national home price index fell 0.8% month over month. For the first time since late 2018, monthly home prices declined in July.

After increasing by 12.9% in August, home price growth slowed in September to 10.6%. Aggressive Federal Reserve interest rate increases intended to lower high inflation by reducing economic demand have severely harmed the housing market.

Freddie Mac data showed that the 30-year fixed mortgage rate crossed the 7% threshold in October for the first time since 2002. Even while the rate dropped back to 6.58% on average last week, it is still significantly higher than the 3.10% average for the same time the previous year.

“As the Fed continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable,” Craig Lazzara, managing director at S&P DJI, said in a statement. “Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”

According to data released this month, the sales of previously owned homes saw their ninth consecutive monthly dip in October. Single-family homebuilding and permits for future construction sank to their lowest levels since May 2020.

According to a Federal Housing Finance Agency study, home prices increased 0.1% every month in September after falling 0.7% in August. Prices rose 11.0% over the previous 12 months, following an increase of 12.0% in August.

MBA Weekly Survey Nov. 30, 2022: Applications Down Despite Falling Rates

As per Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending November 25, mortgage applications decreased for the first time in three weeks despite interest rates falling below 6.5%. The outcomes for the week have been modified to account for the Thanksgiving holiday.

On a seasonally adjusted basis, the Market Composite Index decreased by 0.8% from the prior week, while the unadjusted Refinance Index dropped 13%. Both metrics had fallen to their lowest points since 2000. Refinance applications comprised 26.1% of all mortgage activity, down from 28.4% the week before.

However, purchase applications rose. The seasonally adjusted Purchase Index went up 4% over the previous week.

The proportion of FHA applications dropped from 13.4% the week before to 12.2% overall. The ratio of V.A. applications climbed from 10.5% to 11.2% the previous week. The USDA’s percentage of all applications dropped from 0.6% the last week to 0.5%.

Mortgage rates also decreased for the majority of other loan types.

Next week’s potential market-moving reports are:

Monday, December 5^th – ISM Services Index
Tuesday, December 6^th – Trade Deficit
Wednesday, December 7^th – Productivity, Unit Labor Costs, Consumer Credit
Thursday, December 8^th – – Initial and Continuing Jobless Claims
Friday, December 9^th – Consumer Sentiment Index, 5-Year Inflation Expectations

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.

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