This SoCal city is offering $25,000 for first-time homebuyers
LONG BEACH, Calif. - Owning a home is expensive, and breaking into the home market for the first time can be intimidating and difficult. But, the city of Long Beach is looking to make the process much easier for first-time homebuyers, offering grants to help with fees and down payments.
Long Beach's First-Time Homebuyer Assistance Program offers up to $25,000 in down payment and closing cost assistance for those trying to buy their first home. The program, the city said, is "designed to assist low- and moderate-income families traditionally underrepresented in homeownership," which the U.S. Department of Housing and Urban Development found is extremely important for creating generational wealth.
The city said it has enough money to provide the $25,000 for about 100 homes.
Here's all you need to know about the program:
Is the money still available?
As long as the application is still accessible on the city of Long Beach's website (click here), the money is still available.
What are the requirements?
There are a few requirements including, importantly, that you must already be a resident of the city of Long Beach to qualify.
Here are the full requirements:
- Be a Long Beach resident.
- Your gross annual household income can't exceed 200% of the LA County Area Median IncomeFor a one-person household, that's $137,500/yr. For a four-person household, that's $196,400/yr. (MORE DETAILS)
- For a one-person household, that's $137,500/yr. For a four-person household, that's $196,400/yr. (MORE DETAILS)
- Be a first-time homebuyer. HUD defines this as someone who hasn't owned a principal residence in the last three years.
- Be a first-generation homebuyer — this can mean that your parents never owned a home in your lifetime, lost the home to a foreclosure and don't own a new one now, or that you were a foster child.
- Be pre-approved for a 30-year fixed mortgage loan.
- You can't have more than $100,000 in assets in your bank account after escrow closes.
What are the limitations?
This money can go toward the purchase of a single-family home, townhome or condo anywhere in the city of Long Beach. The money can't go towards mobile homes or multifamily homes.
In addition, if you agree to accept the grant money, you also agree to live there for at least five years. You must also use a licensed realtor in the homebuying process, and have an escrow period of 30 days or longer.
What do I need to apply?
- A driver's license or photo ID
- Income documents - tax documents, pay stubs, etc.
- Asset documents
- Credit report
- Proof that you've been pre-approved for a mortgage
- Utility bill or other mail from the last month, showing you're a Long Beach resident
- A certificate showing you've completed a Homebuyer Educational Course
- An attestation form, showing that you're a first-time homebuyer
Once you apply, the city says it'll review applications on a first come, first served basis. From there, they'll tell you whether you qualify for the grant. That doesn't necessarily mean that you'll get the money, however.
Just like with eligibility, the money will be given out first come, first served, meaning that even if you're marked eligible you may miss out on the money if it runs out by the time you open escrow.
There's also a time limit on your qualification. If you don't close on escrow six months after you become qualified, you'll have to provide new documents to keep your eligibility status.
More information on the program can be found by tapping or clicking here.