Last week, I blogged about what young L.A. Millenniums wanted in their first home and presented a couple of different housing options that these first time buyers are looking for in their first home.
What Do Most 20-Something Buyers Want in Their First Home? - Definitely NOT Their Parent's Home!
At this point, I'd like to offer another option for the first time buyers who is looking to be downtown and minutes from all that downtown living has to offer.
This 2bd/2ba completely remolded Echo Park home is a beauty! With nearly 1,200 sq. ft. of living space on a nearly 6,000 sq. ft. lot, this wonderful home has been completely upgraded with granite countertops, stainless steel appliances and tile and wood floors throughout.
The open floor plan and great architectural high ceiling features make the home feel really spacious! The new landscaping in the front offers great curb and a low maintenance yard.
Just minutes from Elysian Park, Dodger Stadium, L.A. Civic Center, Bunker Hill, and public transportation, you can own this wonderful home for less than $1,800 a month (PITI). Perfect for the young, professional couple or two young, single professionals who want downtown living.
The best part about this home is that it is eligible for down payment assistance through CalHFA. Since 1975, the California Housing Finance Agency (CalHFA) has been making low interest rate loans through the sale of tax-exempt bonds. As the state's affordable housing bank, CalHFA is a completely self-supporting state agency and the bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.
CalHFA's mission is to provide affordable housing finance opportunities to low and moderate income first-time homebuyers. They do this by offering below market, fixed rate mortgages along with down payment assistance (dpa) programs. Borrowers must be first-time homebuyers as well as meet the program income guidelines and requirements and the property must be within CalHFA's sales price limits.
With this particular property though, because it is in a federally designated targeted area, CalHFA will waive the first time buyer requirement. What this means is that the dpa is also available to low-medium income borrowers even if they aren't first time buyers, however, they will still need to meet the income limit guidelines.
CalHFA generally offers a reduced interest rate for eligible homebuyers who meet the "Low Income" limits, adjusted for household size. Loans with competitive interest rates are also available to "Moderate Income" households. The following are the current rates to eligible low-medium income applicants for both conventional loans as well as the FHA loans:
CHDAP provides down payment assistance in the form of a deferred payment second loan, commonly referred to as a "silent second" because you make no payments on the loan for as long as you hold the loan. The amount of the loan is up to the lesser of three percent (3%) of the purchase price or appraised value.
Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting your search. The pre-approval process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs.
For more information on affordable home loan options, please feel free to contact me, Donne Knudsen, at 805.2069123 or donne4loans@earthlink.net.
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