HOME DREAM REALIZED : CITY PROGRAM HELPS FAMILIES TO PURCHASE.

Byline: Deborah Adamson Daily News Staff Writer

For 30 years between them, Luis and Imelda Ramirez of North Hollywood have lived in one apartment or another.

This week, they became proud owners of a 1,000-square-foot home in North Hollywood - with a little help from a low-income housing program.

Built in 1942, their $108,000 fixer-upper was in foreclosure. It needs about $22,000 in work, including a new roof and plumbing. But it's a trade-off the family is willing to make to realize a lifelong dream.

``I'm very excited because this is what I've hoped for, for quite some time,'' said Imelda Ramirez, the mother of three young children.

The monthly mortgage payment for the Ramirez family is $850, which includes taxes and insurance.

Luis is a construction worker, and Imelda, who has been on maternity leave, will return to her job Monday on the production line of a flute manufacturer.

With assistance from the Los Angeles Housing Department's Home Works! program, low-income families such as the Ramirezes can qualify for no-interest loans to help them buy a house in targeted areas that include most of the East Valley and parts of East Los Angeles.

Eligible Valley neighborhoods are in ZIP Codes 91303, 91331, 91343, 91352, 91402, 91405, 91406, 91601, 91605 and 91606.

Low-income households are those earning 80 percent or less of the median income in the area. For example, a couple can make no more than $32,850 to qualify and a family of four could not exceed $41,050.

Started two years ago with $5 million in federal funding, Home Works! began in earnest in September 1995. So far, nine homes have been purchased through the program.

Home Works! targets houses in lower-income neighborhoods or communities where less than 60 percent of the homes are owner-occupied. Many of these homes need repairs.

``The program helps people become homeowners and sells houses that need work and that are harder to sell,'' said program manager Sally Richman.

With a 5 percent down payment requirement, the city can fund a maximum of 2 percent of the down payment, with the home buyer putting up the remaining 3 percent. The city's portion of the down payment will be forgiven if the homeowner stays in the house for 10 years.

In addition, a maximum loan of $35,000 per household is offered, mainly for renovations. The loan has to be paid back after 30 years, but without interest.

If the house is sold or refinanced, this loan also has to be repaid in a lump sum. The city also will get a portion of the home's equity in a sale or part of the mortgage savings in a refinancing.

Applicants still need to qualify for a mortgage from a main lender.

``These are not people with lousy credit who got lucky,'' said Philip Lipp, owner of Allwest Mortgage Co. in North Hollywood. ``These are hard-working people who pay their bills and who really want to be homeowners.''

To help more people qualify, program requirements are flexible, Richman said.

Ellen Stohl, a disabled actress, model and writer, got into the program because of her special circumstances. Her condominium is not in a targeted area, but it's conveniently close to Cal State Northridge, where she works as an integration specialist for disabled preschoolers.

``I thought owning a home is something that would never happen,'' she said. ``It's a great feeling.''

For more information about Home Works!, call [phone].

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Photo, Map

Photo: (color) Luis Ramirez watches TV with his childr en, Leslie, 9, and Irving, 7, before moving out of their apartment.

David Crane/Daily News

Map: ELIGIBLE VALLEY NEIGHBORHOODS