BUENA PARK : City Eases Rules for Home Loan Program

In an effort to jump-start a flagging home loan program for low- and moderate-income residents, the City Council this week eased the qualifications.

The program offers low-interest loans to residents purchasing their first home. To qualify, applicants must meet income and residency requirements as well as secure a primary loan from a bank. The city loans are considered secondary and are generally used for the down payment.

The problem is that the very requirements that qualify people for the program--particularly having a low income--disqualify them from getting approval for the primary loan, said Gus Duran, acting director of redevelopment.

“The price of homes in Buena Park makes it real difficult for people to qualify,” Duran said, adding that starting home prices in the city range from $180,000 to $200,000.

Because no one has as yet been able to qualify, city officials have increased the loan maximum from $30,000 to $35,000. Applicants also may apply for a grant of up to 3% of the home cost applicable toward buying down the interest rate of the bank loan. Residency requirements have also been eased.