Local Bank Required to Offer Assistance to California Homebuyers

by on 8.16.14 in Home Mortgage News

Daisy Assistance Loan

Luther Burbank Savings is required to offer $2,000,000 dollars for downpayment and closing cost assistance to qualified first time homebuyers as a result of a Department of Justice Settlement over alleged fair housing violations from 2006 to 2010.

The Daisy program offers a second mortgage loan of up to $15,000 toward closing costs and down payment to the first 133 qualified borrowers.  Since this program has limited funds, interested first time buyers should move quickly.

Available Counties

The Daisy program is available in select California counties only.  Available Counties are:

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Alameda • Contra Costa • Los Angeles • Marin • Orange • Riverside • San Bernardino • San Diego • San Francisco • San Mateo • Santa Barbara • Sonoma • Ventura

Daisy Assistance Quick Facts

  • Maximum $400,000 first loan amount
  • The first mortgage loan must be approved through an approved Luther Burbank Savings broker
  • The borrower(s) annual income must be equal to or less than 120% of the Area Median Income (AMI) adjusted for family size
  • Prior to closing, you must attend homebuyer or landlord education sessions conducted by a HUD approved Counseling agency
  • Eligible properties include single family, 2-4 units, condos and PUDs. Manufactured housing is not eligible for the Daisy program
  • 0% Interest Rate
  • Up to $7,500 toward down payment
  • Up to $7,500 toward closing costs
  • Forgiven after 36 months if home continues to be owner occupied

Using Daisy with Community Access

Qualified borrowers using the Daisy Program, will also meet the qualifying requirements of the Broadview Community Access Program.

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The Community Access program is a Conventional mortgage that offers discounted closing costs, and private mortgage insurance to buyers whose income does not exceed 140% of area median income.

Since the Daisy program income limits cannot exceed 120% of area median income, this puts you in a great position to take advantage of the many benefits of using the Community Access program.

Down Payment Requirements with Community Access

Because the Daisy program is a second mortgage, and not considered a “Community Second”, which is treated differently by Fannie Mae, the minimum down payment required is 5% of your own funds.

You can then use up to $7,500 of the Daisy loan toward your down payment.  If you are purchasing a home at the maximum first loan amount of $400,000 this $7,500 represents almost an additional 2% down payment, bringing your total down payment to just under 7%.

Limited Availability

It is unknown at this point how long the $2,000,000 will last that has been provisioned for this program, or whether the program will be extended beyond this defined funding amount.

If every qualified buyer is able to borrow the maximum allowed by the Daisy program, the program will be limited to 133 homebuyers.

NOTE:  View All Available Assistance Loans and Grants Here

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