Posted on 04/16/2023 8:10:43 AM PDT by Oldeconomybuyer
California’s Dream For All Shared Appreciation loan program, designed to help make home-buying easier for prospective buyers in the Golden State, is already running out of money.
The program, which launched on March 27, was available to help first-time homebuyers with down payments.
The state has already fully allocated the estimated $300 million set aside for the program as of April 7.
To qualify for the program, households must have earned less than the CalHFA’s income limit, which vary by county and range from $159,000 to $300,000.
The average price of a home in California is $718,687, according to Zillow data, and in big metropolitan home areas, buying a home can cost even more. For example, in San Francisco, the median home price is over $1.2 million; in Los Angeles, the median home price is $891,820, according to Zillow.
(Excerpt) Read more at ktla.com ...
loan to income at 30% means the income needs to be $172,000.
income maybe doable, but what about the 20% down? Zero down means $212,000 income..... doable for the home buyer?
Free money...........................until we run out.
Why are taxpayers funding private ownership of homes? If you don’t have the money to buy a home, why is that a taxpayer’s problem. Find a better job, move elsewhere, or invest in yourself so your value in the market improves. Instead of majoring in Environmental Studies, save the tuition money, become a tradesman. Better yet, joint the military and learn a trade at taxpayer expense.
The gov’t has no business being in the banking business, be it home or student loans.
San Franciscans need to wait a bit, soon housing costs will come down due to all decent people leaving.
I want my reparations money now. Where’s my 5 million dollars? I didn’t go to the trouble of identifying as black for my health.
How are recipients going to afford the property taxes even they can’t afford the home?
It seems that if the home is never sold, then the down-payment funded by government is never repaid.
This program is simply adding government money and demand to an already expensive housing market. Its simply blowing the bubble bigger.
Thus it is also predicated on house prices rising forever. It shows what government's real inflation expectations are. What would happen if long-term home prices, in fact, declined?
News got out, and soon, that 5K was gone by the weekend of the first week.
We have resident crows that we feed. The magpies found out, and now, as soon as the food is put out, the flock of 30-40 magpies descends and in 15-20 seconds, the feeder is bare.
This is true for groceries, housing, automobiles, health care, university education.
Yep with more people moving out of California then into decreasing prices is a major concern. 150% alternative mortgage instrument (AMI), gee nothing can go wrong with paying people to buy a house with zero down..... “buy a house, put money in your pocket....” that’s the Ad copy.... sounds ripe for fraud....
short of complete societal collapse, there will never be affordable housing in California. The cost to build is just too expensive. there is a Minimum of $125K in government fees, just to get your initial grading permit. It only gets worse after that. It took me over 3 1/2 years to get my building permit.
There! Fixed it.
A quick mention in the first line of the “Shared Appreciation loan program”
Sounds like a “run away as fast as you can” program.
You are correct. It is too expensive. Prices are going up even in the sticks. People are moving out of the big cities.
“California’s new 1st time home loan program is already running out of cash”
Must be the math...
“... there will never be affordable housing in California.”
There are plenty of hillsides there on which to build huge favelas...
LOL!
You’ve just proven that you know more about economics than 90% of Congress.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.