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homeownership program in el sereno
Our goal is to increase the number of homeownership opportunities in El Sereno. This is the beginning of a likely 2+ year project where we will sell between 15 – 25 homes. This will include homes that have already been built but need substantial renovations after years of being unoccupied and boarded up – and new construction homes we will build on currently empty, vacant, lots.
The following opportunities are specifically for the first batch of homes available for sale. These specific properties will be 1- or 2-bedroom, previously built homes undergoing extensive rehabilitation by SGV Habitat. These homes are available to purchase by income eligible, first-time homebuyers with households between 1 – 4 people.
- Maximum Income: This is a low-income program, meaning there are maximum income limits for the entire household. These limits are set annually by the federal government.
- Minimum Income: $59,000
To show ability to qualify for and sustain a mortgage payment for the next 30 years.
- Minimum Liquid Assets: $15,000
To show that you are ready to take on the financial responsibility of homeownership. This amount will be used to cover your down payment and closing costs with a portion remaining in the bank – called reserves.
Credit
- 660 credit score
- You cannot have filed Bankruptcy in last 7 years
- You cannot have any open judgements or collections
- You must have a history of on-time payments
- And your Debt to Income must be less than 45%
General
- First-time homebuyer
This means you can’t currently be on title for any property now, or within the last 3 years. There is a full definition on the homeownership page.
- Permanent resident / US citizen
There is federal funding associated with this program that holds this requirement.
- Willingness to Partner
Approved buyers partner with us to complete pre-purchase requirements, including sweat equity hours and homebuyer education.
process
The screening process will be open from 7/1/2024 – 7/31/2024. The online intake form will ask basic information about the applicant, including name, current address, number of people in the household, approximate annual income, etc.
When you submit your intake, you will receive an automated response back notifying you if your household meets our basic program guidelines.
All eligible intakes determined during the screening process will be randomly assigned a processing order. This is not first come first served. We will invite intakes in batches to submit full applications, including supporting documents, based on the randomized processing order.
Submitting a screening form does not guarantee qualification for our program or an invitation to submit a full application.
50% of the homes we sell in El Sereno will be given a preference for those who currently live or work in El Sereno. You’ll be able to note this on your intake form and we will verify this during the application review
Only complete applications will be reviewed by staff to determine full eligibility. We will assess
applications for income, assets, credit worthiness, and general eligibility for the entire household. We will also complete credit, background, employment, and tenant verifications.
Applications will be reviewed based on submission date and only if complete, until enough eligible buyers are identified to fill the homes available for sale.
Please review the eligibility criteria for these homes listed on this website and watch our recorded information session for full details.
Applicants approved for the program will sign a Partnership Agreement and begin completion of pre-purchase requirements.
If you are not eligible this time, or we fill our spots in this batch before we get to your processing number, you will be able to submit another intake form during any of our future screening periods.
We often receive hundreds of intakes and the number of qualified applicants may exceed availability of homes for sale.
Other Important Information
This project has received financial assistance that ensures homebuyers can purchase these homes at affordable prices. This includes downpayment assistance funded by SGV Habitat. Homebuyers, at time of purchase, qualify for a monthly housing payment based on 30% of their gross monthly income. This can include principal mortgage amount and interest, property taxes, and homeowners’ insurance. Buyers will also qualify for an approximate 1% downpayment and minimum closing costs. This is an amazing opportunity to purchase a home affordably.
In exchange for the benefits of this assistance, restrictions are placed against the property. Long-Term Affordability Restrictions will be recorded against the home to limit how much and who you can sell the home for and to at a later point in time. This ensures the long-term affordability of the property while also allowing the original owners to access their paid-in equity, enjoy financial stability with a fixed-rate mortgage, and experience the opportunity so create, grow, and thrive in their own space. Additionally, the property that you purchase must remain owner-occupied for the term of the mortgage. Meaning, you are not allowed to rent out your home. Additional loan terms and restrictions may accompany this purchase.
Homeownership is a major responsibility and our Affordable Homeownership Program is unique. Please watch our recorded information session, review our power point slides, or attend an Information Session to learn more about this specific opportunity.