With most cities starting their fiscal year on July 1, Compton will again have funds available for their First Time Homebuyer Program. It’s not a small handful of buyers, last fiscal year they had funds left over for moderate income buyers.
The Community Redevelopment Agency of Compton has a First Time Homebuyers Program to provide financial assistance to individuals and families with the dream of homeownership. The financial assistance consists of a Second Mortgage, which is in the form of a deferred Silent Second Deed of Trust loan. A deferred Silent Second Deed of Trust loan is essentially a loan provided to the homebuyer interest-free and does not require monthly payments. After five (5) years, the loan will be reduced 10% annually. The loan is forgiven if the borrower lives in the property for 15 years.
An eligible household may receive mortgage assistance not to exceed $100,000 (for moderate income households) and mortgage assistance not to exceed $150,000 (for low income households).
WHAT TYPES OF PROPERTIES ARE ELIGIBLE?
Single family detached properties, condominiums, and town homes in the incorporated area of the City of Compton with a property value at HUD-prescribed levels (not to exceed 95% of the area median home value for Compton) generally are eligible. This applies to those participants that receive HOME funds (Low Income). NOTE: Properties located in the unincorporated areas of the City of Compton are not eligible for the First Time Homebuyers Program. Mobile homes are not eligible for assistance through this program.
WHERE TO APPLY?
There’s a very short list of approved participating lender in Compton that can process these loans for you. No Wells Fargo, BofA or Prospect
There are details available at the City of Compton website www.comptoncity.org
Other Home Buyer Programs to consider include
Carson First Time Homebuyer Program
Long Beach Second Mortgage Assistance Program
Los Angeles Mortgage Credit Certificate Program
Los Angeles American Dream Downpayment Initiative (ADDI) Program
Los Angeles Low Income Purchase Assistance (LIPA) program