Buying your first home in Los Angeles County can feel overwhelming, but don’t worry—programs like the Home Ownership Program (HOP) are here to help! This program is specifically designed to make homeownership more affordable for first-time buyers by providing financial assistance for down payments and closing costs. Let’s dive into the details!

What is the HOP Program?

The Home Ownership Program (HOP) is offered by the Los Angeles County Development Authority (LACDA). It provides financial assistance to first-time homebuyers through deferred, interest-free loans.

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a home in the past three years.
• Income Limits:
  • HOP80: Income must be at or below 80% of the Area Median Income (AMI).
  • HOP120: Income must be at or below 120% of the AMI.
• Owner Occupancy: The home must be your primary residence.
• Homebuyer Education: Completion of an 8-hour seminar from a HUD-approved counseling agency is required.

Benefits of the HOP Program

• Financial Assistance:
  • HOP80: Up to $100,000 or 20% of the purchase price for down payment and/or closing costs.
  • HOP120: Up to $85,000 or 20% of the purchase price.
• Deferred Payment: 0% interest loans with no monthly payments required until sale or transfer.
• Shared Equity: Repayment includes a share of the home’s appreciation.

Potential Drawbacks

• Shared Appreciation: Upon selling or transferring the property, you must repay the loan plus a share of the appreciation.
• Geographic Restrictions: Homes must be located in unincorporated areas of Los Angeles County or participating cities.

Application Process

1. Pre-Qualification: Contact a participating lender to get pre-qualified. Only these lenders can submit your application.
2. Homebuyer Education: Complete an 8-hour seminar with a HUD-approved agency.
3. Property Selection: Find a home that meets eligibility requirements and price limits.
4. Application Submission: Your lender will submit the application to LACDA.

Pros and Cons

Pros:

• Substantial financial assistance for down payments and closing costs.
• Deferred, 0% interest loans with no monthly payments.
• Supports low- to moderate-income households.

Cons:

• Requires repayment with a share of home appreciation.
• Limited to certain geographic areas and income levels.

Program Type

This program provides down payment assistance through deferred loans.

Where is the Program Available?

Location: Los Angeles County, California (including certain cities and unincorporated areas).

Source and Additional Information

For more details, visit the official Los Angeles County Development Authority (LACDA) website:
Los Angeles County HOP Program