City Accepting House Purchase Applications From First-Time, Low-Income Buyers

If you think the American dream of home ownership is out of your reach, you might just be wrong. The city of Moorpark has a house for sale for a first-time, low-income buyer.

The 1,200-square foot, single-family, three bedroom, two bathroom house will be sold for $192,000. The low price comes with the restrictions that the house must be owner-occupied and it must be resold to a low-income buyer. There are also restrictions on refinancing and penalties for defaults.

If it sounds like a good price, it is. The market price of the home is estimated at $360,000.

It stands on a 7,500-square foot lot, has a two-car garage, indoor laundry area, garbage disposal, dishwasher and gas range. And though it’s not in yet, the property also will be provided with landscaping in front and back.

To purchase the home, buyers must have a down payment of at least $9,613 plus approximately $4,000 to $5,000 for closing costs.

The City purchased the a vacant property at 81 First Street and then developed the house as a way to diversify housing funds as well as make an investment in the neighborhood, said David Moe, redevelopment manager.

As well as serving as the developer, the City also will be the lender on this project.

“No one will lend right now. With the current state of the economy, they’re not participating,” Moe said. “So to move this property, we’re underwriting the loan.”

Moorpark residents will be the first considered for the house, but to even be considered, prospective buyers must meet eligibility requirements and complete the application process.

First, buyers must attend one of two information meetings, the second of which will take place tonight at 6 p.m. at City Hall, 799 Moorpark Ave. The first meeting took place Monday.

Buyers must never have owned a home nor may they own any real property when the deal closes.

They also must meet income eligibility requirements. According to paperwork distributed at the first meeting, a family of three must make between $39,650 and $59,850. A family of four must make between $44,000 and $66,500. And a family of five must make between $47,600 and $71,850.

A complete application, which is due by Oct. 14, will include the application itself plus copies of a buyer’s last four pay stubs, copies of their 2009 and 2010 federal tax returns and W-2 forms, three months’ worth of recent bank statements for proof of down payment and, for those who wish to be considered a resident of Moorpark, a copy of a recent utility bill. Bank statements, landlord names and phone numbers and other information may also be needed.

In order to attend tonight’s meeting, reservations are required, as space is limited. Call (805) 517-6243 to make reservations.