Thu 2 Nov 2006
First time home buyer?
Posted by Steve under Real Estate
I’m a renter. Sometime in the next few years, I could see myself purchasing a home. Of course, by “home” I mean 1 or 2 bedroom condo. In my neck of the woods, you only get the white picket fence with an expansive lawn if you’ve got $700K+ to throw around. Ahem…but I’m not bitter.
Anyway, I recently came across this site: California Housing Finance Agency. About the site:
For over 30 years, California Housing Finance Agency (CalHFA) has supported the needs of renters and first-time homebuyers by providing financing and programs that create safe, decent and affordable housing opportunities for individuals within specified income ranges. Established in 1975, CalHFA was chartered as the State’s affordable housing bank to make below market-rate loans through the sale of tax-exempt bonds. A completely self-supporting State agency, bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.
Below market interest rates? Well, that’s music to my ears. Unfortunately, there’s a catch (there always is!). At present my income is still within the “specified income range” they speak of, but in a couple of years, when I’m ready to pull the trigger, it will probably have exceeded the range. Who woulda thunk that making more money could be a bad thing!?
Anyway, it’s a very interesting program and one I had not heard of before the other day. Admittedly, I haven’t really researched the issue at all, so that’s not too surprising. I would imagine other states and even other countries offer similar programs. If you’re thinking of buying your first home, I’d definitely recommend seeing what programs are available just for you.
November 2nd, 2006 at 6:50 pm
In Canada we can take our RRSP (closest equivalent for the US market that I can think of would be your 401K) and use them for a first time homebuyer downpayment. This is to help with the large amount of money that is required to leave the renters market.
The housing market in my are is the same; my fiance and I want to stay in the area but a house starts at 400-450k and really needs to have an additional 100k put in just to make the place livable. It makes making the investment a really tough decision.
November 3rd, 2006 at 2:49 pm
If you have good credit, but don’t want to buy right now or don’t have the money to buy in your area, have you considered buying other places, to at least have your money start working and growing for you? It’s a great time to buy right now if you can.
November 4th, 2006 at 9:34 pm
My credit is fine. And I’ve looked into real esate, but there’s only a few markets I would consider investing in right now. I’m not convinced it’s a good time to be buying in most markets.
November 5th, 2006 at 8:58 am
This is a buyers market right now. When the real investors buy- you should buy. When the crowd goes left- go right.
April 16th, 2007 at 1:55 pm
I feel your pain, man. It’s truly sad when you live in an area with an income that exceeds 6 digits and you STILL cannot afford a nice home. I shouldn’t have to pay $600K for a fixer-upper!