County and city money for first-time buyers

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In an effort to stimulate home buying, cities and counties throughout Southern California are rolling out programs that give incentives to first-time buyers.

Among them, Los Angeles County’s Housing Economic Recovery Ownership program is set to launch March 17. It offers interest-free second trust deed loans of $50,000 to $75,000 to first-time borrowers who do not already own a home or for those who have not owned a principal residence for three years preceding the purchase.

Single-family foreclosed or abandoned homes are eligible in designated census tracts with a maximum price of $493,000 and foreclosed or abandoned attached homes up to $394,250. No repayment of the second trust deed is required until the home is sold, transferred, refinanced or no longer owner-occupied.

The program requires qualified applicants to complete an eight-hour homeownership course from an approved U.S. Department of Housing and Urban Development counseling agency. The county has set aside $10 million for the effort. More information is available at the website.

In Riverside County, the city of Corona’s Redevelopment Agency has reinstated its Home Owner Assistance Program for first-time buyers. The agency will contribute the 20% down payment to purchase a foreclosed home up to $350,000.

The city has received 28 applications since January and spent more than $750,000 of the $1.5 million allocated to the program.

After the first $1.5 million is spent, Corona Redevelopment Agency spokesperson Jesus Morales said the city may earmark another $1.5 million. Visit the website for more information.

--Scott Marshutz

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