First-Timers with Tax Credit Can Get Seconds in California

The Independent Cities Finance Authority, a Joint Powers Authority representing more than 7 million people in 66 California counties, has started a second-loan program for first-time buyers who are eligible for the $8,000 federal tax credit. ICFA will lend qualified buyers up to $8,000 at closing in the form of a second mortgage. Upon receipt of the credit, buyers can file amended returns for 2008 to receive the credit this year rather than waiting until they file their 2009 returns - the buyer must pay off the second lien. The second can be used to meet the 3.5% minimum downpayment requirement on an FHA loan, essentially eliminating the need for the borrower to come up with a downpayment. The program is available on a first come, first served basis through real estate brokers, residents or builders in any ICFA member city of ICFA. The 66 regions are: Alhambra, Azusa, Baldwin Park, Barstow, Bell, Bellflower, Brea, Carson, Chino, Claremont, Colton, Commerce, Compton, Covina, Downey, Duarte, El Monte, Fairfield, Fontana, Fresno, Gardena, Garden Grove, Glendale, Glendora, Hawaiian Gardens, Hawthorne, Hermosa Beach Huntington Park, Indio, Inglewood, La Habra, La Puente, Lakewood, Lancaster, Lawndale, Long Beach, Los Angeles, Lynwood, Monrovia, Montebello, Monterey Park, Morgan Hill, Norwalk, Palmdale, Paramount, Pico Rivera, Pomona, Rancho Cucamonga, Rialto, Riverside, Rohnert Park, San Bernardino, San Bernardino County, San Diego County, San Fernando, San Mateo County, San Juan Capistrano, Santa Clarita, Santa Rosa, Signal Hill, South Gate, Vernon, Vista, West Covina, Whittier and Yucaipa.