Affordability continues to remain an issue for many low-and moderate-income first-time homebuyers. The median price of a home for sale in Stockton was $420,000 as of Friday, according to the Central Valley Association of Realtors. A 6% to 20% down payment at that price would equal between $25,200 and $84,000.A program to address those 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-earning professionals to relocate permanently to San Joaquin County, said Jeffrey Michael, professor of public policy at University of the Pacific’s McGeorge School of Law. What’s more, the pandemic recession has made it difficult for many low-income people to stay housed at all.CalHFA’s Homebuyers program offers both down payment assistance and mortgages to homebuyers that earn up to $148,000 per year. To access the program, homebuyers must first check if they are eligible. If they are, they should contact one of the lending officers in CalHFA’s network.“One of the biggest hurdles for people is that down payment,” Eric Johnson, a spokesperson for CalHFA, said. Through CalHFA’s programs, homebuyers need a 3% to 3.5% down payment, and the agency will help them obtain it with a low-interest loan that is repaid when the loan is refinanced or the home 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. has funded a portion of the homebuyers program by purchasing home loans from CalHFA, which then puts the proceeds toward down payment assistance. The Apple funds are part of a $1 billion affordable housing support initiative the Silicon Valley-based tech company announced on Wednesday.More:Apple gives $1 billion to fund affordable housing projects in CaliforniaThe money from Apple has funded 323 loans worth roughly $109.3 million for families in San Joaquin County, Johnson said. About two-thirds of the participants in the homebuyers program are Hispanic, Black, Asian, Pacific Islander or Native American, and the program provides additional benefits to teachers, veterans and firefighters, according to Apple’s news release.Even with the help of assistance programs, it can be tough for low-income homebuyers to compete with homebuyers who can afford to offer more than the asking price, make non-contingent offers or even pay full price, said Pete Diryawush, president of the Central Valley Association of Realtors.However, it’s important to keep in mind that the market will not be this crowded forever, Diryawush said. Recently, sellers have put more homes on the market, easing somewhat the pressure buyers were feeling earlier in the pandemic. “Since the pandemic, everyone went crazy … everybody automatically wanted to buy a home,” he said.Diryawush recommended that homebuyers “have an open mind when you’re looking at homes,” and that homebuyers look at homes with prices slightly lower than their budgets in case they need the difference to make a competitive offer. Education is key in helping people not only to afford their homes, but to stay in them, Johnson said. “As we saw back in the early 2000s, it’s really easy to get any random person into a home,” but much harder to keep them their home, he said. All CalHFA loans come with a mandatory six-hour educational course that applicants must complete before their loan deals close, as well as optional courses after the loan, he added. More information about 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.Record reporter Aaron Leathley covers business, housing, and land use. She can be reached at aleathley@recordnet.com or on Twitter @LeathleyAaron. Support local news, subscribe to The Stockton Record at recordnet.com/subscribenow.
