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Homebuyer Opportunity Program
The City of Paramount is thrilled to help you purchase a qualifying home in Paramount. The Homebuyer Opportunity Program supports first-time homebuyers by offering a 30-year term 0% interest free loan, up to 30% of the Borrower’s purchase price for a qualifying property. The total annual household income may not exceed 150% of the Los Angeles Area Median Income (AMI). The buyer must have enough cash on hand to contribute 1% of the purchase price. Funding is limited.
The application period is currently closed as of 11/20/2024. The application period will resume periodically if there aren’t enough qualifying applicants.
What to expect if you have already submitted an Interest Form.
Thank you for expressing interest in the Homebuyer Opportunity Program and submitting the Interest Form. Due to the overwhelming popularity of the program, we are taking administrative actions to ensure the program remains fair and productive for all eligible applicants. To do so, we have developed a program wait list. This list allows us to track your interest in a first-come, first-serve basis, allowing program staff to diligently assist you throughout your application process.
The City has hired a consultant to assist with processing the applications for the program. A representative from MDG Associates, Inc./LDM Associates, Inc. will be reviewing the Interest Forms and reaching out via email. The next steps will be to verify income. Please have the following information available:
- The last 3 years of income tax returns.
- 3-months of pay stubs, banking statements, including checking, savings account, CD’s.
- Retirement account information including: 401k, 457, IRA etc.
Remember, funding is limited and applications will be processed on a first-come, first-serve basis. Do not email or submit any of the above documents unless you have been contacted directly by Maximiliano Flores with MDG Associates, Inc. or Sol Bejarano with the City of Paramount and the information has been requested.
Program Information
Buyer
- Occupy the property as your primary place of residence.
- Contribute 1% of the purchase price from your funds.
- Must not have owned a residential unit within the last three years.
- Housing counseling requirement.
- The total gross annual income of the entire household must not exceed 150% of the Los Angeles County Area Median Income (AMI).
Property Guidelines
- Property must be located within the City of Paramount.
- The property may be a single-family detached home, condominium, townhouse, or manufactured home with a fixed foundation.
- Before final loan approval, the property requires an onsite visual inspection by program staff, and must comply with all City codes, ordinances, and zoning requirements at time of purchase.
Loan Requirements/Guidelines
- 0% interest free loan, up to 30 % of qualified purchase price.
- 30-year affordability period and will be forgivable at the rate of 1/30th of principle amount each year.
- Can be applied towards down-payment, closing costs, and mortgage loan principal reduction assistance.
- Front-end ratio set at 33% of gross household income.
- Debt-to-income ratio not to exceed 36% or up to 45%, depending on credit worthiness.
