This program, sponsored by the Alhambra Redevelopment Agency, provides up to $35,000 in down payment assistance for First-Time Homebuyers.

Sponsored by the Alhambra Redevelopment Agency

Benefits of the Program:

Up to 35,000 in down-payment assistance for First-Time Homebuyers

Basic Qualifications:

1. Alhambra residency for two consecutive years at the time of application.
2. U.S. Citizen or permanent residency status.
3. No real estate holdings in the past three years.
4. Possess 2% of purchase price to contribute toward a down-payment.
5. Combined gross household income must be 120% or less of the Los Angeles County Median Income Adjusted for Family Size. (See income chart.)

Income Level	1-person household	2-person household	3-person household	4-person household	5-person household	6-person household	7-person household	8-person household
Moderate	$ 47,200	$ 53,900	$ 60,700	$ 67,400	$ 72,800	$ 78,200	$ 83,600	$ 89,000

About the Down-Payment Assistance Loan

1. The maximum down-payment assistance per First-Time Homebuyer is $25,000-Citywide, $35,000-Target Areas. The targeted areas are designated arterial and collector streets in Alhambra (but may be changed without notice at the Agency's discretion). An additional $15,000 to $25,000 may be provided for rehabilitation. The maximum total assistance per household is $50,000.
     
2. The Redevelopment Agency's direct financial assistance will be in the form of a 20-year loan to the Homebuyer secured by a second trust deed.
     
3. The loan will be non-interest bearing for the first five (5) years.
     
4. The loan will then bear a simple interest of five percent (5%) beginning in year six. No monthly payments will be required.
    
5. If the houshold remains in the unit for the entire 20-year term, the loan and the interest will be forgiven.
    
6. Loan principal, interest, and any "Net Proceeds" is due and payable if during the first 20 years the property is sold, title is transferred, the home is not occupied as the principal residents by the applicants, or there is unauthorized refinancing of the first trust deed.
    
7. In addition to payment of the second mortgage, the Redevelopment Agency will also receive a share of equity if the unit is sold within the 45-year affordability period. To discourage sales during the first five (5) years, the Agency's share of equity is 75% of equity accrued. The Agency's share of equity is based upon the recapture table below:
   
   The recapture or accrued equity is as follows:
   a) First 5 years -- 75%
   b) Years 6 through 10 -- 50%
   c) Years 11 through 15 -- 25%
   d) Years 16 through 20 -- 10%
   e) Years 21 through 45 -- 5%

Other Program Requirements

In addition to the basic qualifications listed above, the following terms must also be met:

1. The house must be located within the City of Alhambra.
2. The house may be a single-family home, a townhouse, or a condominium.
3. The maximum purchase price cannot exceed $374,500 for Townhouses and Condominiums and $508,250 for Single Family Homes.
4. You must be able to provide at least 5% of the down-payment from your own resources based upon the purchase price of the home.
5. Your first mortgage must be a Fixed Rate Loan.
6. Prior to submitting a bid on a home, each house must be inspected by the City of Alhambra, Housing Division.
7. Within escrow, a certified building inspection company must inspect the house, and each buyer must have a one-year warranty plan.
8. Your purchase offer must be contingent upon receiving the down-payment assistance loan from the City of Alhambra.

About the Process

After submitting all the required documentation and receiving approval from the Housing Division the following steps must be followed:

1. Attend Housing Division-approved First-Time Homebuyer Workshop (see following paragraph).
2. Select a Lender for Loan Pre-Approval.
3. Select Real Estate Agent to assist in finding a home.
4. Find a home to purchase.
5. Have Safety and Code Inspection by Housing Division. (Inspection must take place prior to offer.)
6. Make Formal Offer to Seller.
7. Have Professional Home Inspection Company submit a comprehensive report on home to be purchased.
8. Forward Escrow and Loan Documents to Housing Division.
9. Sign loan papers for second deed of trust in City Hall. Be certain to have current ID with photo and address. (Identifications listing a P. O. box address are not acceptable.)

After step nine (9), the funds are messengered to the escrow company at which point escrow can be closed provided that the first deed of trust has already been funded. After the close of escrow, the applicant becomes the owner of the property.

The First-Time Homebuyer Workshop

The First-Time Homebuyer Workshop is sponsored by Consumer Credit Counseling Services of Los Angeles. Attendance at a workshop is required as part of the certification process prior to looking into purchasing your first home.

You will receive the First-Time Homebuyer Workshop approval letter with the telephone number to schedule a First-Time Homebuyer seminar. Workshops are held regularly but reservations are required.

PLEASE NOTE: There is a $25.00 fee for the First-Time Homebuyer Workshop sessions. Therefore, be prepared to pay the $25.00 by cash, money order or cashier's check payable to the Consumer Credit Counseling Services.

Once you have attended a First-Time Homebuyer Workshop and received your Consumer Credit Counseling Services Certificate, make sure that our office receives a copy of the certificate. Then you may begin looking for a home.

Review of First-Time Homebuyer's Eligibility

Also, at the opening of escrow to purchase your home, the City of Alhambra will ask you to recertify your eligibility for the First-Time Homebuyers Program. The recertification process will require three current pay stubs, current bank statements for all interest bearing accounts and the most recent State and Federal Income Tax reports. Once the recertification documents are reviewed and your eligibility is reconfirmed, you will be ready to proceed with the purchase of your home.