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HOME BUYING ASSISTANCE
(562) 904-7167
First Time Homebuyer Programs
Mortgage Credit Certificate Program
The Mortgage Credit Certificate Program (MCC) allows qualified homebuyers to take a
federal income tax credit up to 20% of the annual interest paid on the mortgage. The MCC
tax credit reduces the federal income taxes of qualified homebuyers purchasing qualified
homes, thus having the effect of subsidizing their payments. The homebuyer then has use
of more of their income to spend on buying a home. As a result, their effective home
buying power is increased.
First Time Homebuyer Programs
The City of Downey's Homebuyer Assistance Program (HAP) offers financial assistance, up
to $40,000 or 25% of the purchase price, to qualified first time homebuyers in the form
of a deferred loan, with no monthly payments or interest. The homebuyer must contribute a
minimum 5% down payment, while the HAP loan can be utilized to provide a larger down
payment and closing costs. These second mortgage loans are repaid at the end of 20 years,
or sooner if the property is refinanced, transferred, leased or sold. The City will
receive a share of any property value appreciation in an amount equal to its original
down payment assistance percentage.
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