Background

FIRST-TIMEHOME BUYER
PROGRAM

PROGRAM OVERVIEW
EFFECTIVE 2024

Buyer

  • You must occupy the property as your primary place of residence.
  • You must contribute three percent of the purchase price from your funds.
  • You must not have owned a residential unit or been on the title of a residential unit within the last three years.
  • The maximum CalHome loan amount will be 40 percent of the Borrower’s purchase price for the property, or up to a maximum of $200,000.
  • The purchase price may not exceed $725,000, subject to periodic adjustments.
  • The total gross annual income of the entire household must not exceed 80 percent of the Los Angeles County Area Median Income (AMI).

Property Guidelines

  • The property must be within the City of Lynwood limits/boundaries.
  • Occupancy Ratio: No more than 1.5 people per living space (including bedrooms, living room, family room, den/study).
  • The property may be a new or resale single-family detached unit, condominium, townhouse, or manufactured home on a permanent foundation.
  • You must obtain fire and casualty insurance, including flood insurance when applicable, covering the replacement value of property improvements.
  • The property must be free from any health & safety hazards and/or lead poisoning exposures.
  • Before final loan approval, a Housing Quality Standards (HQS) inspection will be conducted to verify the property’s condition. Proof of initial building permit issuance must be provided.

Loan Terms

  • Principal and interest payments shall be deferred for the term of the CalHome Program Loan.
  • CalHome program Loans shall be secured by the property.
Prohibited loans and terms:
  • a) Negative Amortization
  • b) Stated Income
  • c) Adjustable Rate Mortgage (ARM)
  • d) Interest-Only Loans
  • e) The Front-End Ratio cannot be below 28 percent or over 40 percent
  • f) The Back-End Ratio cannot be over 48 percent.