New home loan forgiveness program helps Bay Area first-time buyers

CALIFORNIA IS GIVING FIRST-TIME HOMEBUYERS A CHANCE TO BREAK INTO THE COMPETITIVE HOUSING MARKET. WE HAVE MORE ON A NEW PROGRAM THAT OFFERS LOAN FORGIVENESS IF YOU STATE IN A HOME LONG ENOUGH. >> I THINK IT IS AN AMAZING OPPORTUNITY. >> Reporter: HE IS A REALTOR HELPING FAMILIES TRYING TO FIND YOUR NEXT HOME. >> THE SUBURBS HAVE BECOME COMPETITIVE AND AS A RESULT MAJOR DOWNTOWN CENTERS LIKE SAN FRANCISCO AND OAKLAND WHICH HAVE PLENTY OF CONDOS DON'T HAVE THE SAME AMOUNT OF ATTRACTION. TRUCK THIS CONDO MAY BE THE RIGHT FIT FOR SOMEBODY TRYING TO USE THE FORGIVABLE EQUITY BUILDER LOAN. >> HOMEOWNERSHIP IS ONE OF THE BEST WAYS TO BUILD INTERGENERATIONAL WEALTH BECAUSE THERE IS A BIG WEALTH GAP BETWEEN DIFFERENT GROUPS ESPECIALLY IN CALIFORNIA. >> Reporter: IT IS TARGETED AT PEOPLE WHO HAVE THE INCOME TO PAY THE MONTHLY PAYMENTS REQUIRED TO BUY A HOUSE BUT HAVEN'T HAD A CHANCE TO SAVE UP THE MONEY FOR A DOWN PAYMENT. >> IN A LOT OF CASES THE RENT THEY ARE PAYING IS HIGHER THAN THE MORTGAGE PAYMENT WOULD BE. >> Reporter: BUYERS CAN GET 10% OF THE PURCHASE PRICE FOR THEIR FIRST HOME AND THEY HAVE TO LIVE THERE FOR FIVE YEARS IF THEY DON'T WANT TO PAY IT BACK AND QUALIFY YOU NEED TO MAKE 80% OF THE AREA MEDIAN INCOME WHERE THE PROPERTY IS LOCATED. >> THERE IS NO SILVER BULLET BUT THERE WILL BE SOMETHING HERE OR THERE OR THERE. >> Reporter: ACROSS THE BAY AREA, THAT IS $107,000 IN MOST COUNTIES AND ALMOST 120,000 AND SANTA CLARA COUNTY. >> IT IS POSSIBLE THAT YOU CAN BUY A HOME EVEN WITH ALL OF THE BAD NEWS, IT IS STILL POSSIBLE TO GET A HOME. >> Reporter: PROPERTIES LIKE THIS ONE HAVE A FRACTION OF THE SHOWINGS COMPARED TO HOMES IN THE SUBURBS SO BUYERS USING THIS LOAN FORGIVENESS PROGRAM WOULD FACE LESS COMPETITION. >> YOU CAN'T SUDDENLY ADD 300,000 ABOVE LISTING BUT ONLY HOW MUCH YOU ARE PREAPPROVED FOR. >> Reporter: PATIENTS AND SACRIFICE ARE REQUIRED IN ALMOST ALL CASES IN SUCH A HOT MARKET. >> WHEN THEY COMPETE IN AN AREA WITH LESS COMPETITION LIKE SAN FRANCISCO OR OAKLAND, THEY MAY HAVE A CHANCE.

Channel: KPIX | CBS NEWS BAY AREA

Views: 24,060

Keywords: KPIX 5 News Evening

Id: YHbbF5Dtdmw

Length: 2min 24sec (144 seconds)

Published: Tue May 03 2022