Did you know that the city of Corona offers a buyer assistance program that will loan you up to $75k at ZERO percent interest! It's a no interest 2nd. They also offer up to $5k in closing costs. A sweet deal if you can get it.
I don't think many people are aware of this perk. There are of course restrictions but overall the program is pretty straight forward. The thing that may exclude most people are the income restrictions. They are pretty low. For a family of 4 you must make between $53k and $74k per year. It does not say if that's gross, net, adjusted or what (i'd guess that's gross pay).
If you would like to read more you can get the pdf file here
3 comments:
This is insane. 0% interest loans (borrowed at about 5 %) for 3% down loans in a falling market. Practically inviting fraud in the front door, and losing substantial money even if there's not fraud at all. Corona is going to get clobbered financially on this. The only redeeming feature is that the amount is relatively small (1.5 million).
An interesting effect of the comparatively small size of the program is that it benefits friends and families of insiders, who as first to know can snag much of the giveaway. It would be interesting to find out who's getting the benefits and what connections they have to pols in Corona.
Agree with Fair Econ on some of this - its usually those who have an "in" that get these perks. But what is the cost to a community with lots of vacant houses? Things get run down, vandalism, crime etc. People who own their own home usually have some interest in preserving or enhancing the community.
They started this program last year when the housing market was seized up. The intent was to get people buying the foreclosed homes. In the hopes it would magically bring the market back, thus bringing the tax revenue back.
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