I receive about a dozen calls a day from buyers asking me if they qualify to buy a home in Watercolors, La Quinta. Watercolors is a 55+ age and income-qualified community. Buyers must apply and be approved by the City of La Quinta redevelopment program, before buying a home in Watercolors.
Here is what you need to know to buy a home in this beautiful, centrally located, newer, gated community in La Quinta, California:
1. INCOME: Maximum income cannot exceed $37,550 for a single person or $42,900 for a family of two, as of 2013.
2. TOTAL ASSETS: The buyer’s total assets cannot exceed $200,000, after the purchase of the home.
3. LOAN: Home must be purchased with a loan. All cash sales are not allowed.
4. PRIMARY RESIDENCE: Watercolors must be the buyer’s primary residence.
5. RENTALS: Rentals are not allowed.
6. SILENT SECOND: The City of La Quinta pays part of the loan on each home. The amount varies from home to home. The cities portion of the loan is called a silent second. This loan stays with the house for the 30-year life of the loan, no matter who the buyer is or how many different buyers own the home throughout the life of the loan. If the price of the home is $150,000, the silent second may be an additional $100,000. The buyer’s loan will be for $150,000, but he or she will need to qualify for a $250,000 loan, even though the buyers loan will only be for $150,000.