There are housing grants available for low income people buying homes in Compton.
The city of Compton, California, provides affordable housing assistance loans and grants to individuals and non-profit corporations. These programs are to benefit low-income households that demonstrate a financial need for assistance. Funding for the housing programs is provided through the Department of Housing and Urban Development (HUD) and the state of California. Loans or grants are provided only if funding is available.
First-Time Homebuyers Program
Compton offers a no interest silent second loan to qualified low-income borrowers. To qualify for the program, the borrower is required to meet income limits, be a first-time home buyer and purchase a home in Compton. The silent second loan provides additional money for the purchase of a home in addition to a first mortgage. There is no repayment for the grant if the homeowner resides in the property for a minimum of 15 years.
Residential Rehabilitation Programs
The Residential Rehabilitation Programs provides three options to low income who reside in Compton. The Deferred Equity Loan Program provides assistance to correct housing code violations. This no interest loan is forgivable after 5 years. The Fix it Repair program provides a grant for minor maintenance, such as installing smoke alarms or window screen. There is no repayment necessary for this program. The Emergency Assistance Program is provided for repairs that are causing health and safety concerns. The loan is forgivable after 3 years.
Community Housing Development Organization (CHDO) Program
The CHDO Program is for non-profit organizations that develop affordable housing. The developer will be required to become a certified CHDO with the city of Compton. The developer must be able to demonstrate the ability to develop affordable housing for low-income households. Once the developer becomes certified, she can apply for funding to develop or rehabilitate housing for low-income individuals. Compton offers CHDO funds in form of a grant that does not have to be repaid.
Application Requirements
When applying for the First-Time Home Buyers Program, the borrower must provide evidence she attended the mandatory home buyer's education class. Verification of income, credit report and proof of down payment funds are also required. The Residential Rehabilitation Programs require a copy of the property's trust deed, income verification, property insurance verification and a copy of the annual tax bill. Affordable housing developers wanting to become certified as a CHDO need to provide a description of their project, articles of incorporation, bylaws, executive summaries for staff and certification that one-third of the board members are low-income individuals.
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