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Notice of Funding Availability (NOFA) - Round 14 Architectural Design Guidelines 2009 Community Development Commission HDP E-newsletter more...

 

HOUSING ECONOMIC RECOVERY OWNERSHIP (HERO)

• 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.
  
  
• Effective June 15, 2009, properties must be purchased at a discount of 1% 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
HERO Census Tract Maps
How to locate a Real Estate Owned (REO) eligible property
Participating Lenders
Homebuyer Education Seminars
REO Resources