Long Beach is expanding its first-time homebuyer assistance program by raising the qualifying income threshold, enabling residents of all areas of the city to apply and increasing the grant amount from $20,000 to $25,000, the city said Tuesday.
A previous version of the program required interested homebuyers to live in certain low-income and moderate-income communities in the city, which are mostly concentrated in central, west and north Long Beach.
However, the expansion of the program will now allow eligible residents to live anywhere in the city so long as they meet other income and previous home ownership criteria.
Along with raising the possible grant amount by $5,000, the city’s expansion also raises the maximum household income. Now, a household of four can make up to $196,400 and still qualify for the program, according to the city’s website.
Previously, the program required a household income that did not exceed 150% of the Los Angeles County Area median income. This year, it may not exceed 200% of the area’s median income.
In a statement, Mayor Rex Richardson said that homeownership is a significant milestone and dream for many individuals and families and it’s one that the city is committed to helping them attain.
“This important Program offers an incredible opportunity, empowering first-time homebuyers to invest in their future and plant roots in our great city,” Richardson said.
To qualify, an applicant has to be a current resident of Long Beach and a first-time homebuyer, which is defined as not having owned a principal residence during the past three years.
Applicants must also be first-generation homebuyers, meaning that their parents or guardians never owned a home during the applicant’s lifetime or lost a home to foreclosure and currently do not own a home.
The site estimates that about 100 households could receive the maximum grant amount with the funds it has set aside for the program.
The grants do not need to be repaid and can go toward a down payment, closing costs, and escrow fees, and applicants trying to reduce their mortgage interest rates by buying down loan points.
Funds for the program were made available through the federal and state COVID-19 relief funds that the city used to help small businesses and residents through a host of programs including the recently expanded basic income pilot program and the first-time homebuyer program.
For a full list of requirements, income limits and instructions on how to apply for the program click here.