A plan to offer down payment assistance to first time home buyers in the City of Bishop is in the works.
At a recent Bishop City Council Study Session, before the regular meeting, Pam Hennarty with Mammoth Lakes Housing, briefed the City Council on the possibility of loaning potential home buyers who work in the City of Bishop up to $200,000 to purchase a home.
The way it would work is that the City would apply for a federal grant that is administered by the state. Mammoth Lakes Housing staff would then administer the money for the city, and then loan the money to people who make 80% of the area median income, or $47,000 for a family of four.
If a house cost $300,000, the home buyer would get a regular 30 year fixed rate loan from a bank for what they could afford and Mammoth Housing would then lend the rest of the money to buy the house, but without interest. When the home buyer pays off the regular bank loan in 30 years, then they start to pay off Mammoth Lakes Housing loan.
Hennarty explained that over the last three and a half years, Mammoth Housing has loaned out $3.5 million dollars to fifty home buyers in Mammoth and Mono County. With strict lending guidelines, so far no one has defaulted on the loans, she says.
The program is already at work in Mammoth and Mono County. Inyo County has rejected the program. The Bishop City Council appeared interested and may schedule a public hearing on this topic for the May 11th council meeting.