Loans to Aid First-Time Home Buyers
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The Gardena City Council on Tuesday approved a $4-million loan program to help first-time home buyers come up with down payments.
The city hopes the program will attract middle-class families that otherwise would be forced to buy homes in less expensive communities. In September, Gov. George Deukmejian signed into law a bill that authorized the city to raise money for the program by issuing revenue bonds.
City Manager Ken Landau said Gardena will issue $4 million in bonds, which are expected to be sold in the next few weeks.
City officials expect the bond money to last up to two years. When it runs out, the city can issue more bonds, Landau said.
Under the terms unanimously approved Tuesday, households with combined incomes of $92,600 or less can qualify for a city loan. The home buyer must provide a down payment of at least 5%, and the city can lend up to 65% of the purchase price.
However, Landau said city officials intend to lend only up to 20%.
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