News Wire: City of LA Program - Fully Expended

City of LA's Homeownership Programs have fully Expended funds

We just got word directly from the LAHD (Los Angeles Housing Department) that the low and moderate income funds for the City of LA purchase assistance programs have been fully expended and/or reserved.

As you may or may not know, LAHD receives new low income funds every April/May of each year. Lenders may still place buyers on the Waist List, however, pending the arrival of new program funds.

The Homeownership Unit has also requested additional low and moderate income funds; we will advise will let you know when those funds become available.

On the upside, there is a high likelihood that the City may receive approximately $2.5 million of moderate income funds in approximately 1-2 months.

This isn't bad news for new buyers who haven't started the homebuying process. Although, this will definately affect those who are in the process and are in escrow, with part of their planned financing coming from the City.

If you are in this situation, contact your lender and see how this will affect you. If you have already negotiated a purchase transaction, ask you r lender to submit a PRIORITY Reservation Request form ASAP.