About MHDC

Contact MHDC

(323) 722-3955

1.) What is the goal of the Montebello First Time Home Buyer Program?

2.) How does the MFTHBP accomplish its goals?

3.) Who is eligible for the MFTHBP program?

• Have not had an ownership interest in residential real estate within the preceding three years;
  
• Have the ability to contribute a down payment of at least 3%;
• Currently live or work in Montebello, or have parents or children who live or work in Montebello. The minimum period for residency is at least six months, the minimum hourly requirement for work is presently compensated employment of 15 hours per week; and
• Have income limits within the Los Angeles County Area Median Standard Schedule, but not to exceed 120%.

4.) Who is eligible for the Cal Home Loan program?

• Must be low or very low income;
• Have not had an ownership interest in residential real estate within the preceding three years;
  
• Have the ability to contribute a down payment of at least 3%;
• Buyers must attend a home buyer education class approved by the MHDC.
• Have income limits within the Los Angeles County Area Median Standard Schedule, but not to exceed 80%.

5.) How do I know if my family income will qualify for the MFTHBP?

The following restrictions apply to the programs:

• The second mortgage loan assistance cannot exceed 25% of the purchase price of the property; and
• The purchase price of the home cannot exceed $228,000.
• The maximum loan amount is $20,000.

6.) How do I know if my family income will qualify for the Cal Home Loan?

The following restrictions apply to the programs:

• The home must be developed or rehabilitated by the MHDC and sold to a first time buyer who meets the program requirements.
• The purchase price of the home cannot exceed $228,000.
• The average loan amount is $20,000.
• The home must be in Los Angeles County.

7.) What is the term of the second mortgage loan?

This is a Second Mortgage Loan and must be repaid. The term of the Second Mortgage Loan is thirty (30) years. There is no interest or principle payment for the first five (5) years. Repayment period of the Loan will be twenty-five (25) years, starting on the sixty-first (61) month from the original date of the loan. The MHDC can structure repayment plans to accommodate financial means of the Homeowner (at the repayment starting period). The loan carries an annual interest of three percent (3%). The Loan is subject to "Shared Appreciation" between the MHDC and the Homebuyer, upon of the home. "Shared Appreciation" is the difference between the purchase price and the sale price of the home. The MHDC has the first option to purchase the home from the Homebuyer, prior to the home being sold on the open market.

8.) What happens if the homeowner violates the loan terms?

If the homeowner violates the loan terms, the loan comes due. Reasons for default may include:

• Default by the homebuyer under the first loan.
• Default by the homeowner under the second loan note, deed of trust or resale agreement.
• If the property ceases to be the primary residence of the homeowner.
• In the event that the residence is rented or leased for more than two months out of a 12-month period and the MHDC has not consented to the leasing.
• In the event that another deed of trust is recorded other than the first and second deeds of trust.