The California State Legislature is being supported by the California Association of Realtors (C.A.R.) in a quest to inject $1.3 billion in to affordable housing programs in the Golden State.
"With a historically low homeownership rate of 54 percent and record high rental costs, the dream of owning a home in California is evaporating...middle class workers should be able to afford to live in the communities they serve," said C.A.R.'s President Pat "Ziggy" Zicarelli. "C.A.R. is fully supporting the proposal to invest a portion of our state's budget surplus to address this housing crisis."
The budget includes $400 million for homeownership opportunities and down-payment assistance. The rising costs of houses in the State, fueled by high demand and limited supply, has left numerous potential homeowners locked out of buying because they lack the requisite twenty percent down-payment.
FHA loans have proven to be a good alternative as well as they require as little as 3.5 percent down.
Today, conventional conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 2.875 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.