The Los Angeles County Development Authority (LACDA) offers two programs to assist first-time homebuyers: the Home Ownership Program and the Mortgage Credit Certificate Program.
The Home Ownership Program (HOP) loan provides a second mortgage loan for first-time homebuyers with an assistance amount of up to $85,000, or 20% of the purchase prices, whichever is less. The loan provides down payment and/or closing assistance and is secured with a Deed of Trust and Promissory Note. The HOP offers 0% interest loans with a deferred payment. Repayment is required when the home is sold, there is a transfer of title, or the home is no longer owner-occupied. To qualify, a homebuyer must not have owned a home in the last three years and the home must be owner-occupied.
The Mortgage Credit Certificate (MCC) Program offers qualified first-time homebuyers a Federal income tax credit. The credit can reduce potential Federal income tax liability, creating additional net spendable income for qualified first-time homebuyers to possibly use toward their monthly mortgage payment. This MCC Program enables qualified first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar-for-dollar tax credit on their U.S. individual income tax returns. The qualified homebuyer is awarded a tax credit of up to 20% of the annual interest paid on the mortgage loan. The remaining 80% of the mortgage interest will continue to qualify as an itemized tax deduction.
Further information on these programs is available on the following LACDA web pages: