Are you thinking about buying your first home in Long Beach? That’s fantastic! Navigating the home-buying process can feel overwhelming, but don’t worry—I’m here to help. Let’s chat about the City of Long Beach First-Time Homebuyer Assistance Program, a wonderful opportunity that might make your dream of homeownership a reality.

Program Overview

The City of Long Beach offers a First-Time Homebuyer Assistance Program designed to support low- and moderate-income families who are traditionally underrepresented in homeownership. This program provides eligible applicants with up to $25,000 in grants to assist with down payments and closing costs, making it a bit easier to purchase your first home.

Funding Source

This program is funded through the Long Beach Recovery Act, which allocates resources to economic and public health initiatives for residents, workers, and businesses impacted by the COVID-19 pandemic.

Eligibility Criteria

• First-Time Homebuyer: You haven’t owned a principal residence in the past three years.
• First-Generation Homebuyer: Your parents or guardians never owned a home during your lifetime, or they lost their home to foreclosure or short sale and do not currently own a home. Individuals who have lived in foster care also qualify.
• Residency: You must currently reside in Long Beach.
• Income: Your annual household income should not exceed 200% of the Los Angeles County Area Median Income (AMI). For example, as of January 2024, a household of four can earn up to $196,400 and still qualify.
• Mortgage Pre-Approval: You need to be pre-approved by a lender for a 30-year fixed mortgage loan.
• Liquid Assets: You must not have more than $100,000 in liquid assets after the close of escrow.

Benefits

• Financial Assistance: Receive up to $25,000 in grants for down payment and closing costs.
• No Repayment Required: Since it’s a grant, you don’t have to worry about repaying the amount.
• Homeownership Opportunities: This assistance can make purchasing a home in Long Beach more attainable, helping you build multi-generational wealth.

Potential Drawbacks

• Limited Availability: The program aims to assist approximately 100 households, so funds are limited and awarded on a first-come, first-served basis.
• Primary Residence Requirement: You must agree to occupy the home as your primary residence for a minimum of five years.
• Property Restrictions: The grant can be applied toward the purchase of a single-family home, townhome, or condo located anywhere in Long Beach. Mobile homes and multi-family homes are not eligible.

Application Process

1. Prepare Documentation: Gather necessary documents, including proof of income, residency, and mortgage pre-approval.
2. Submit Application: Complete the application process through the program’s website. Applications are processed on a first-come, first-served basis.
3. Await Approval: If eligible, you’ll receive a notice of program qualification.
4. Find a Home: Work with a licensed realtor to find a suitable property in Long Beach.
5. Open Escrow: Ensure the escrow period is 30 days or longer. Qualified applicants must not have opened escrow before applying for the grant.
6. Receive Funds: Grant funds will be disbursed directly to escrow to cover eligible costs.

Sources

• City of Long Beach First-Time Homebuyer Assistance Program
• Official City of Long Beach Website