City of Downey

FIRST TIME HOME BUYER PROGRAM

Homebuyer Programs

(562) 904-7167

Introduction
Are you dreaming of buying a home, but afraid it's beyond your reach? Maybe the City of Downey can lend a helping hand. With our Homebuyer Assistance Program (HAP), we offer a second mortgage which is available to eligible Downey residents and employees. This program assists qualified first time homebuyers with the down payment and loan fees for a home that might not otherwise be affordable. Loans of up to $40,000 or 25% of the maximum $540,550 purchase price are offered with no monthly payments and zero percent interest. Please call the City's Housing Division at (562) 904-7167. Let us help make your dreams come true.

Information Sheet
The City of Downey's Homebuyer Assistance Program (HAP) has been developed to provide first time homebuyers with the financial assistance necessary for homeownership. The HAP loan is in the form of a deferred payment second mortgage. The HAP Program is designed to assist qualified households with the down payment and closing costs for the purchase of a home in Downey. As funding is limited, loans will be granted on a first come, first serve basis.

HAP Loan

Deferred Loan with no payments or interest, up to $40,000 or 25% of the purchase price.
Loan repaid at the end of 20 years, or sooner if the property is sold or transferred.
City will share in the appreciation of the property.

Eligible Properties

Purchase price of $540,550 or less.
Any new or existing house, townhouse or condo.
Conventional fixed rate mortgages are compatible with HAP loans.
Another eligible homebuyer may assume the loan and extend the 20 year period for the second buyer.

Eligible Homebuyers
First time homebuyer: Have not owned a home within the last 3 years, or a displaced homemaker or single parent.

Resides or is employed within the city of Downey.
Meet lender's underwriting criteria.
Provide 5% down payment of the purchase price.
Complete homebuyer's education training on homeownership, to be provided by the lender.
Must agree to occupy home as principal residence.
Applicant's annual gross household income must be below the following limits:

Household Size	Annual Income
1	$42,450
2	$48,500
3	$54,600
4	$60,650
5	$65,500
6	$70,350
7	$75,200
8	$80,050