The Los Angeles Housing Department (LAHD) recently announced the Low Income Purchase Assistance (LIPA) Program has received a limited amount of additional funding from HOME and CalHome funds. The LIPA program has received approximately $3,6 million for approximately 60 loans.
HOME and CalHome funds have certain program requirements and restrictions so the LIPA program has been modified.
Additionally, LAHD announced that LIPA funds may be used in conjunction with the American Dream Downpayment Initiative (ADDI) Program and the Mortgage Credit Certificate (MCC) Program.
All three programs (LIPA, ADDI, and MCC) may be combined!!
The new 2010 Income Limits have been released by HUD as shown on the attached documents.
The LIPA and ADDI funds may assist eligible Low-Income, first-time homebuyers purchase an eligible home in the City of Los Angeles.
LIPA funds provide eligible low-income homebuyers purchase assistance in a form a loan of up to $60,000; and ADDI funds provide a loan equal to six (6%) of the purchase price, or $10,000; whichever is greater.
LIPA and ADDI funds may be used for purchase assistance, down payment and closing costs.
The LIPA and ADDI programs are available for eligible properties in the City of Los Angeles – Citywide!!
Purchases may include Standard Sales, Foreclosures/REOs, and Approved Short Sales.
Properties eligible for purchase under the LIPA and ADDI programs are limited to:
- Regular Single Family Homes built between 2000-2010.
- Condominiums, Townhomes, or Planned Unit Development (PUD) built between 1979 – 2010.
The property must be in very good condition and be free of any Code violations. Additionally, the property cannot have any illegal rooms or illegal structures.
At its own expense, LAHD will inspect all eligible properties applying under the LIPA and ADDI programs to ensure program eligibility.
LAHD does not offer any property rehabilitation/repair funds under the LIPA and ADDI programs.
Any minor property deficiencies or repairs needed as identified by the LAHD inspection will have to be repaired or cured during escrow and paid for by the Buyer or Seller. Properties needing major rehabilitation/repairs will not qualify or be eligible for the LIPA and ADDI programs.
LAHD began accepting LIPA and ADDI Loan Reservations on Friday, May 14, 2010.
Reservations are issued on a first-come, first-serve basis, and only for those buyers who have found an eligible property and have an accepted, fully-executed Purchase Contract with the Seller of the property.
For more information on the LIPA and ADDI program features and requirements, please refer to the attached documents.
Forms Required for participating in the program:
LAHD LIPA PROGRAM MODIFIED ADDITIONAL FUNDS RECEIVED NEW 2010 INCOME LIMITS