Redevelopment/Economic Development

The Yorba Linda Redevelopment Agency, a separate entity from the City of Yorba Linda, is charged with improving the community by encouraging development of private and public projects within the Redevelopment Project Area.

Mortgage Assistance Program

The Yorba Linda Redevelopment Agency has created the Mortgage Assistance Program (MAP) to help low and moderate income people to purchase their first home. This assistance is provided in the form of a "silent second" mortgage loan.

Please review the material contained on this page thoroughly to determine if this program meets your needs for purchasing your first home and if you are eligible for a MAP loan. If you are then interested in taking part in the program, your first step will be to contact one of the participating lenders to determine if you qualify for a loan (click here for a list of participating lenders.)

You may submit an Initial Application (click here to open the form) to the Yorba Linda Redevelopment Agency at any during this process. The application will be kept on file for one year. The application will be reviewed for approval at the time you have selected a home to purchase in Yorba Linda. NOTE: Submittal of an application does NOT guarantee funds will be available nor does it place the buyer on any waiting list. Funds are reserved on a first come, first served basis when buyers submit a copy of their purchase and sale contract to the Yorba Linda Redevelopment Agency.

QUALIFICATIONS
Any single-family detached home, attached or detached townhouse, condominium unit, or manufactured home within the city limits of Yorba Linda is considered an eligible property for participation in the MAP.

Buyers wishing to participate in the MAP must meet the following qualifications.

The maximum combined household income may not exceed the following amounts (based on the number of persons in the household) [These limits are for the year 2008 and are subject to change without notice.]

1 person $72,300
2 persons $82,650
3 persons $92,950
4 persons $103,300
5 persons $111,550
6 persons $119,850

May not have owned a residential property at any time during the past 36 months, unless a) buyer is or has been displaced by a redevelopment project undertaken by the Agency and has not yet been relocated, b) buyer qualified as a "displaced homemaker*," c) buyer is a single parent with custody or joint custody of minors.
Must occupy the property as principal residence
Loan must be approved by a participating lender
Loan must be approved only for the home buyer(s); co-borrowers/co-owners other than the owner-occupant(s) will not be permitted. The restriction is intended to prohibit investors from utilizing qualified persons for investment purposes. This is not an investor program.
Liquid assets may not exceed the total of buyer's portion of the down payment, closing costs, six months reserves for mortgage payments, plus $5,000 in emergency funds.

MAP LOAN AMOUNT

The maximum loan amount is ten percent (10%) of the purchase price or $25,000, whichever is less. For example, a home with a purchase price of $200,000 would be eligible for a MAP loan of $20,000 (10%). A home with a price of $275,000 would only be eligible for a MAP loan of $25,000 since 10% of the purchase price ($27,500) would be greater than the allowed maximum of $25,000.

MAP LOAN

The loan is in the form of a "silent second." The issuance of the first mortgage loan for the home must be made by one of the participating lenders. The homebuyer is required to put down a minimum of 5% from buyer's own funds (unless the participating lender permits 3% from buyer's own funds plus 2% from a gift).

The MAP loan is a second mortgage on the home. The MAP participant borrows the MAP amount from the Agency in addition to the amount borrowed from the lender providing the first mortgage loan. For those buyers who do not have a substantial amount for a down payment, the MAP loan borrowed from the Agency may make up the difference. The more money put forth as a down payment, the less the primary mortgage amount borrowed and thus lower the monthly payment. The borrower must pay the first mortgage loan in accordance with the terms of that loan.

If the buyer owns and resides in the home for a minimum of 15 years, the MAP loan will be forgiven and no payment will be required. Repayment of the first mortgage loan still must be paid in accordance with the terms of that loan.

In the event the home buyer wishes to sell or transfer the home within the first 15 years, 100% of the MAP loan must be repaid, plus an equity share percentage based on the sliding scale below.

APPLICATION PROCESS

Applications will be accepted at any time during the process. The Agency will keep the Initial Application on file for one year. Once a home has been selected, the lender and a loan servicing agent will determine the applicant's eligibility for participation in the program. No funds will be reserved until the purchase contract for a home has been signed. The Agency will accept applications on a continuous basis.


* A "Displaced Homeowner" is defined by the U.S. Department of Housing and Urban Development as an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive 12-month period, and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment, and worked primarily without remuneration to care for his/her home and family.