Prospective homebuyers struggling to find an affordable residence in the Golden State might find some relief thanks to changes being made to a first-time homebuyer program.
Many areas in California have significant disparity between the income it takes to be able to afford a residence and what the people in those areas are actually earning.
Thirty-five counties in the state of California have been identified as having
the greatest disparity between housing costs and household incomes among all the state’s counties.
To address the disparity, the California Housing Finance Agency has made changes to its CalHFA Conventional mortgage program.
According to the agency, it has raised to 140 percent the maximum a borrower can earn of median income in one of the 35 counties.
Previously, the limit was 120 percent of median income.
One example cited was for Sacramento County, where families earning up to $106,500 annually
are now eligible.
The cap in Sacramento County was raised from $91,300 under the 120 percent limit.
Thousands of families across the 35 counties are expected to have gained eligibility for the program as a result of the change.
“Based on our findings, and the challenges many Californians face when it comes to being able to buy a home, we felt it was important to increase the income limits for CalHFA Conventional mortgages in most counties,” CalHFA Executive Director Tia Boatman Patterson said in the April 5 announcement. “This will allow families in some of the most expensive and competitive housing markets in the state to have a chance at becoming homeowners, which we know is so important to the health of the housing market and the quality of neighborhoods, education systems and overall life.”
