First Time Home Buyer in California
30-year rates have fallen again for California first time homebuyers. This means that people looking for conventional, VA and FHA home loan programs will be pleasantly surprised because affordability has never been more evident than they are now with these low interest rates. Our lenders offer competitive rates and amazing customer service. That's why so many of our first time home buyers in California end up getting an equity loan or refinancing with lenders that offer the opportunity to save or get access to money presents itself.
Check Out Rates and Terms for 1st Time Home Loans California.
- California FHA Rates
- Low Down-Payments
- 100% VA Loans
- Down-Payment Assistance
- Cash Back
- HARP Refinancing
First Time House Buyers in California Hoping For Expanded Home Loan Programs
In a recent article, many lenders reported a surge in applications for first time home loans in California. Many people renting on the West Coast have decided to a buy a house in part because first time home buyer loans in California are more attractive than any other time in the last 5-years.
While there are plenty of reasons to be optimistic about the housing market in California and nationwide, the situation still isn't rosy for everyone out there. In fact, individuals who were actually able to afford a home in the California Bay Area dropped to 45% in the second quarter compared to 66% in the first quarter of this year. This is due to a number of different factors, including limits and additional regulations imposed on Fannie Mae and Freddie Mac that make it difficult for individuals to purchase a home in high-cost regions of the state.
To make matters even worse, prices in the Bay Area for just about every type of home have risen by an incredible 31.7% within one year. For buyers who have a moderate income, this is a problem. Homes priced under $500,000 in the region have dropped to 42.2% from 59.1% just one year ago.
What this means for middle-class buyers is that they have to go back and reevaluate their purchasing options since homes that would have been well within their reach just a year ago are now priced beyond what they can reasonably afford.
In order to help these individuals achieve their goals of home ownership, both state and federal programs are being implemented to a lower and middle income people in finding a home that they can afford. Unfortunately, these programs may be coming just a little bit too late for a lot of individuals as home prices continue to rise but incomes stay flat.
The Department of Housing and Urban Development reported that loan originations have risen dramatically for first time house buyers in California. Many new home buyers are indicating positive results when it comes to applying grant funds from WISH or CALHFA going towards the down payment of a FHA loan for homes purchased in California.
Even more concerning to many first-time home buyers is the fact that new regulations which will go into effect on January 1, 2014 require lenders to decline any loans to individuals who have a debt to income ratio greater than 43%. Fortunately, there are still options available, especially for people who are interested in loans from the FHA. Because the FHA does not have the same strict lending guidelines that traditional lenders have, they are better equipped to help lower and middle class families find homes they can afford even if borrowers have a limited credit history or a credit score that is as low as 500.
While increased home values are good news for real estate agents, lenders, and sellers, they do pose significant hurdles for individuals that are looking to purchase their first home or upgrade from their current residence the one that is larger or in a better region within the Bay Area.