Home Ownership Programs

The City of Covina participates in several special loan programs that offer down payment and/or closing cost assistance to the home buyer. Several of the programs place a "silent second" on the property. These programs include the Home Ownership Program, the American Dream Down-Payment Program, The Mortgage Credit Certificate Program, and the Southern California Home Financing Authority. For more information, please click here to see the contact information for the County of Los Angeles, which administers the programs:
http://www.lacdc.org/CDCWebsite/HDP/FirstTimeHomebuyer.aspx

The Independent Cities Lease Finance Authority Program is also available to Covina homebuyers. For more information on this program, go to the website at http://www.iclfa.org.

HOP Program
The Home Ownership Program (HOP), operated by the County of Los Angeles, is available to low-income families. The program offers 0% interest loans to borrowers who have not owned a home in the last three years. Maximum loan amount is $60,000, or 20% of the purchase price, whichever is less.

American Dream Down-Payment Initiative (ADDI)
The American Dream Down Payment Initiative (ADDI) is administered as part of the Home Investment Partnership Program, a formula grant program. ADDI will provide down payment and closing costs, with a loan of up to $10,000 or six percent of the purchase price of the home, whichever is less. The ADI loan is included with the HOP loan as a second trust deded loan at 0% interest, with all payments deferred until sale, transfer, refinancing, or full repayment of the first mortgage.

MCC Program
Most borrowers who qualify for the HOP program also qualify for the Mortgage Credit Certificate (MCC) program, which offers the first time homebuyer a federal income tax credit. This credit reduces the amount of federal taxes the holder of the certificate would pay.

The qualified homebuyer who is awarded an MCC may take an annual credit against their federal income taxes paid on the homebuyer's mortgage. If both the homebuyer and the new home are eligible, the participating lender fills out the MCC application forms for the homebuyer, and sends them to the County for review. If both the home and homeowner qualify, the County can then issue an MCC. There is a non-refundable application fee for an MCC.

Southern California Home Financing Authority (SCHFA)
The Southern California Home Financing Authority (SCHFA) is a joint powers authority formed in June 1988 to issue tax-exempt mortgage revenue bonds for low and moderate-income first-time homebuyers. The SCHFA has helped thousands of individuals and families fulfill their dreams of owning their own home.

Funds may be reserved for pre-qualified buyers who have a properly executed purchase contract (subject to available funds). In 2008, income limits for a household of one or two persons is up to $88,800 and for a household of 3 or more persons the income limit is up to $103,132. Purchase price limit for an existing home is $571,278.

Independent Cities Lease Finance Authority (ICLFA) Program
Covina participates with the Independent Cities Lease Finance Authority (ICLFA) in its Down Payment and Closing Cost Assistance program. This program is offered in partnership with the National Homebuyers Fund (NHF). The ACCESS Program funds may be used for down payment and closing costs in the form of a Second Mortgage.

ACCESS FHA funds are available to those qualified homebuyers with incomes of up to 120% of the area median income. The income limit for the conventional programs is up to 140%  of area median income. The income limit for conventional loans in Los Angeles County will range between $65,100 and $91,140 regardless of family size. Get more information at www.nhfloan.org.