LOANS HELP WITH DOWN PAYMENTS.

Byline: Cecilia Chan Staff Writer

Help is on the way for those who have the income to afford monthly mortgage payments but just can't seem to be able to save enough money to get their foot in the door of their own home.

A new program through the Ventura County Housing Authority is offering home loans that include the nest egg needed to make a down payment and cover closing costs.

``For two schoolteachers who make enough money but have not been able to save, this just gives them the money to move into the house today,'' said Wesley Wolf, housing consultant for Bank One and the Ventura Cities Mortgage Finance Authority, a group of cities participating in the program.

``Most of the people who come into our program have a job and can afford the (mortgage) payment but they are unable to save because of the cost of housing going up so fast. By the time they've saved the extra four points, the costs of housing have gone up.''

The Down Payment Assistant Program offers 30-year, fixed-rate Federal Housing Administration and Veterans Affairs loans that set aside 4 percent of the loan for the down payment and closing costs.

If a buyer purchases a $150,000 home using a traditional FHA fixed-rate mortgage, they would have to shell out $4,300 for the down payment and $4,200 for closing costs and prepaid expenses. Under the new program, a buyer could pay as little as $600 out of pocket at the time of closing.

``That is the unique gift,'' Wolf said.

``But like anything in America, nothing is free,'' he said. ``It's forgiven over time.''

The 4 percent down payment is subject to a payback if the home is sold or the loan is repaid during the first 10 years, said Deborah Nelson, accounts representative with Lancaster Mortgage Services Inc.

Homeowners can get out of repaying the 4 percent assistance if they buy a more expensive home or if another qualified buyer assumes the loan and lives out the terms of the agreement, she said.

The 2-year-old national Down Payment Assistant Program debuted in Ventura County on June 15 and has $25 million in the pot via a taxable bond issue, said Tom Langdon, director of Capital Markets in Oklahoma City.

The Ventura County Housing Authority, made up of participating cities, is administering the program.

Thousand Oaks has joined the authority, which means it has agreed to allow the program to be used within city limits, said Mark Asturias, city housing manager.

``It's just another way we can provide the citizens in the community to get into home ownership positions,'' Asturias said. ``We are always trying to find opportunities to get our residents into housing.''

The maximum loan offered under the program is $208,000, and the funds can be used for houses, townhomes or condominiums.

In Ventura County, the median selling price of a home was $234,438 in 1998 but much higher for such cities as Thousand Oaks, with a median selling price of $326,751, and Simi Valley, with $218,650.

``This program is designed for low- to moderate-income people who are trying to get into a home,'' Langdon said. ``And typically they are buying homes that are probably no more than $200,000.''

PARTICIPATING LENDERS

International Home Capital Corp. Larry Manfre, [phone]

Lancaster Mortgage Services Inc. Geoff Betzing, [phone]

Pacific Partners Mortgage Corp. Dan Bonfiglio, [phone], or Lori Bonfiglio, [phone].

PARTICIPATING CITIES

Camarillo, Fillmore, Moorpark, Ojai, Simi Valley, Thousand Oaks and unincorporated areas of Ventura County.

CAPTION(S):

Box

BOX: PARTICIPATING LENDERS (see text)