Help For Some California First Time Home Buyers
http://www.financemeter.net/articles/7571/1/Help-For-Some-California-First-Time-Home-Buyers/Page1.html
Jennifer Stromsteen
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Published on 07/31/2008
California first time homebuyers find help with new program.
Communities that have been hit hard by the current foreclosure crisis in California is the focus of Governor Schwarzenegger who has come up with a plan to stabilize the neighborhoods as well as helping those looking to buy, including the first time home buyers. Many communities in California struck by the foreclosure crisis have neighborhoods with homes that loom vacant amongst active family dwellings. Houses with boarded up windows, for sale signs and dead lawns sit neglected without buyers to fill them.
Using the worst hit communities for his ground zero, the Governor launched a special home loan program targeted at these abandoned properties in hopes that people will buy. "We want to fill up those empty homes and neighborhoods with stability and create, again, energy in those neighborhoods as quickly as possible. And this program is a step in the right direction," stated Governor Schwarzenegger (R) CA.
Under the state's Community Stabilization Home Loan Program, close to $200 million is available. This will help from 800 to 1,000 first time home buyers buy a foreclosed home with a 30 year mortgage at a below market fixed rate interest. Naturally there are sales price limits as well as income limits and the property has to be located in the areas that were hit particularly hard by foreclosures; areas such as Riverside, Alameda and Merced Counties in California.
This program does not include every foreclosed home in the state designated areas and only a few lenders are participating in the program and of these lenders they are only listing certain houses. Despite this there remain thousands of homes that can be purchased for bargain basement prices.
One potential first time homebuyer, Nancy, states; "I have not even owned a home on my own." She is enthusiastic that the program puts her dream no longer renting and becoming a home owner closer to a reality. Nancy asks, "Who would have guessed five years ago that this would happen? Of course, for a lot of people, it's a tragedy. But for some people, it's a wonderful opportunity."
Residents living in high foreclosure neighborhoods are even more excited about the effort who have witnessed many abandoned homes be defaced with graffiti as well as otherwise being vandalized. One resident living near a foreclosed home says, "Obviously, that it was going to be distressed property and nobody would take upkeep on it. And so, it was a little bit of blight."
Because of a bond the state will issue, the Community Stabilization Home Loans will not cost taxpayers anything. The CSHL will be paid back with the new buyer's mortgage payments.
Using the worst hit communities for his ground zero, the Governor launched a special home loan program targeted at these abandoned properties in hopes that people will buy. "We want to fill up those empty homes and neighborhoods with stability and create, again, energy in those neighborhoods as quickly as possible. And this program is a step in the right direction," stated Governor Schwarzenegger (R) CA.
Under the state's Community Stabilization Home Loan Program, close to $200 million is available. This will help from 800 to 1,000 first time home buyers buy a foreclosed home with a 30 year mortgage at a below market fixed rate interest. Naturally there are sales price limits as well as income limits and the property has to be located in the areas that were hit particularly hard by foreclosures; areas such as Riverside, Alameda and Merced Counties in California.
This program does not include every foreclosed home in the state designated areas and only a few lenders are participating in the program and of these lenders they are only listing certain houses. Despite this there remain thousands of homes that can be purchased for bargain basement prices.
One potential first time homebuyer, Nancy, states; "I have not even owned a home on my own." She is enthusiastic that the program puts her dream no longer renting and becoming a home owner closer to a reality. Nancy asks, "Who would have guessed five years ago that this would happen? Of course, for a lot of people, it's a tragedy. But for some people, it's a wonderful opportunity."
Residents living in high foreclosure neighborhoods are even more excited about the effort who have witnessed many abandoned homes be defaced with graffiti as well as otherwise being vandalized. One resident living near a foreclosed home says, "Obviously, that it was going to be distressed property and nobody would take upkeep on it. And so, it was a little bit of blight."
Because of a bond the state will issue, the Community Stabilization Home Loans will not cost taxpayers anything. The CSHL will be paid back with the new buyer's mortgage payments.