Low-income San Joaquin County homebuyers can get help from CalHFA
Affordability remains an issue for many low- and moderate-income first-time homebuyers. The median price of a home for sale in Stockton was $ 420,000 on Friday, according to the Central Valley Association of Realtors. A 6-20% down payment at this price would equal between $ 25,200 and $ 84,000.
A program to resolve these issues is available through the California Housing Finance Agency.
Middle-class homebuyers could see increased competition for local housing – especially if the spread of telecommuting allows high-income professionals to settle permanently in San Joaquin County, said Jeffrey Michael, professor of politics. public at the McGeorge School of Law at the University of the Pacific. . Additionally, the pandemic recession has made it difficult for many low-income people to stay housed.
CalHFA’s Homebuyers program offers both down payment assistance and mortgage loans to homebuyers earning up to $ 148,000 per year. To access the program, home buyers must first verify if they are eligible. If they are, they should contact one of the loan officers in the CalHFA network.
“One of the biggest hurdles for people is this down payment,” said Eric Johnson, spokesperson for CalHFA.
Through CalHFA’s programs, homebuyers need a 3-3.5% down payment, and the agency will help them get it with a low-interest loan that is paid off when the loan is refinanced or when the loan is refinanced. the house is sold, Johnson said.
CalHFA can also help fund the purchase price with a 30-year fixed rate mortgage with an interest rate of 3.625%, he said.
Apple Inc. funded part of the homeownership program by purchasing home loans from CalHFA, which then allocates the proceeds to down payment assistance. The Apple funds are part of a billion-dollar affordable housing support initiative announced Wednesday by the Silicon Valley-based tech company.
Apple’s money funded 323 loans worth about $ 109.3 million for families in San Joaquin County, Johnson said.
About two-thirds of home buying program participants are Hispanic, Black, Asian, Pacific Islander, or Native American, and the program offers additional benefits to teachers, veterans and firefighters, according to the Apple release.
Even with the help of assistance programs, it can be difficult for low-income homebuyers to compete with homebuyers who can afford to bid more than ask price, make unconditional bids, or even paying full price, Pete Diryawush, president of the Central Valley Association of Realtors, said.
However, it’s important to keep in mind that the market won’t be so crowded forever, Diryawush said. Recently, sellers have put more homes on the market, somewhat easing the pressure buyers felt earlier in the pandemic.
“Since the pandemic everyone has gone crazy… everyone automatically wanted to buy a house,” he said.
Diryawush recommended that homebuyers “have an open mind when looking at homes” and that homebuyers look at homes with prices slightly below their budgets in case they need the difference to make a difference. competitive offer.
Education is key to helping people not only pay for their homes, but stay there, Johnson said.
“As we saw in the early 2000s, it’s really easy to get any random person into a house,” but a lot harder to keep them in their home, he said. All CalHFA loans come with a mandatory six-hour course that applicants must take before their loan agreements close, as well as optional post-loan courses, he added.
More information on interest rates, who is eligible for Cal HFA loans, and where to find a lender in San Joaquin County can be found on the agency’s website at https://www.calhfa .ca.gov / homebuyer / index.htm.
Recording reporter Aaron Leathley covers business, housing and land use. She can be reached at [email protected] or on Twitter @LeathleyAaron. Support local news, subscribe to The Stockton Record at recordnet.com/subscribenow.