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MORTGAGE ASSISTANCE PROGRAM (MAP)
PROGRAM DESCRIPTION

The Community Redevelopment Agency through the Mortgage Assistance Program (MAP) makes available deferred payment (principal and interest) second trust deed loans for assistance with down payment and closing costs. The loan is made by the Community Redevelopment Agency of the City of Palmdale and may assist with up to $20,000 for participants whose income is 80 percent or below area median income or $10,000 for participants whose income ranges from 81-100 percent of area median income. In no event can the base first trust deed loan amount plus the down payment portion of the MAP loan exceed the purchase price of the property being purchased or its appraised value, whichever is less.

The MAP loan may only be used with a new first trust deed FHA or FNMA-insurance fixed rate loan without any buy-down provisions. Adjustable interest rate loans are NOT permitted through the Program.

The Mortgage Assistance Program loan has no monthly payments (principal and interest) and is due and payable when the property is sold, rented, refinanced for cash-out, or a change in title occurs. A forty-five (45) year CC&R is recorded on the property. At the time of sale, the Borrower shall pay to the Agency an amount equal to the MAP Promissory Note amount, plus Agency's proportional share of the equity sale proceeds. This provision will be waived if the property is resold to another income qualifying applicant who submits required income documentation.

This program is specifically designed to provide qualified households with down payment and closing costs assistance to secure financing towards the purchase of a single family home, townhome or condominium in Palmdale. The home purchased must be owner occupied as a Principal Residence for the entire term of the MAP loan and is subject to yearly monitoring.

What are the eligibility requirements?

• First-Time Homebuyer: A MAP Applicant must be a first-time homebuyer, which means the Applicant cannot have had an ownership interest in a personal residence at any time within the past three (3) years, unless they qualify as a displaced homemaker or a single parent.
  
  
• Income: An Applicant's gross annual household income must fall below the following limits (subject to change annually):
  
  

  Family Size	Income Limit* (100% of area median income)	Income Limit* (120% of area median income)
  1	$39,300	$47,200
  2	$45,000	$53,900
  3	$50,600	$60,700
  4	$56,200	$67,400
  5	$60,700	$72,800
  6	$65,200	$78,200
  7	$69,700	$83,600
  8 or more	$74,200	$89,000

  
  *HUD income limits effective February 2006
  Income includes income of spouse or dependents age 18 years and over.
  
  
• Affordable Housing Cost: Applicants must meet established "affordable housing cost" requirements, as defined by the State Redevelopment Law. Affordable housing cost is strictly determined as a percentage of the monthly gross household income specially utilized toward the total cost of owning a home. This calculation varies depending on actual annual household income. City staff will determine each applicants' housing cost limit as part of the approval process.
  
  
• Purchase Price: Although there is no purchase price limit, there is a limit for the amount for allowable upgrades on new homes. The allowable upgrades on new homes cannot exceed $3,000 with all personal items such as refrigerators, washers, dryers, portable microwave ovens, etc. that are not attached to the wall to be paid in cash by the borrower.
  
  
• Credit Score: All MAP applicants must have a credit score of 580 or higher.

For more information or to receive an application please call Terry Rascoe or Sophia Reyes at (661) 267-5126.