Affordable Housing Program
The City of Monrovia Redevelopment Agency is very active in attempting to help provide affordable housing to first time homebuyers wishing to live in Monrovia.
Over the past several years the Redevelopment Agency has worked with various housing developers in procuring property and requiring that some of the new homes constructed be designated as “Affordable Housing”. These homes are offered to homebuyers at a below market price. Old Town Mortgage, the authorized loan administrator, will provide the first mortgage. The loan amount is based on the reduced sale price. The Redevelopment Agency will put in place an interest free second mortgage that does not require monthly payments, but does carry restrictions on the sale or refinancing for a 45-year period. This second mortgage held by the Redevelopment Agency will generally be an amount equal to the difference between the reduced sale price and the actual open market value of the home.
There are income restrictions, which are based on the number of family members that will occupy the home. In general, the larger the family the more income the homebuyer can earn and remain eligible for the program. Family income is the combined earnings of all family members living in the household. It is necessary to comply with the income restrictions, yet the fact remains, that the buyer does need to earn adequate income to qualify for the first mortgage.
The buyer needs have to adequate proven income, the necessary funds to cover any required down payment and closing costs, and have good credit. Adequate income and the cash necessary for down payment and closing costs will vary with each individual affordable house or condominium. Applicants will need to furnish documentary evidence such as: pay-stubs, W-2 forms, tax returns and bank statements for review.
The demand for this affordable housing is extremely high and the available homes are limited. Therefore, although this is an ongoing program there are times when there will not be any homes available.
If you have an interest in this program you may apply at: oldtownmortgage.net
Open the “Apply Now” button and complete the "Short Loan Application”.