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REALTOR®: It’s a Perfect Time for First-time Homebuyers, According to CalHFA Official

Monday, February 25, 2008

A California Housing Finance Agency (CalHFA) official joins Realtors in fending off negative views about the housing market, saying he prefers to look at the positive side, and focus on opportunities still very much available for first-time homebuyers.

Eric Johnson, a CalHFA marketing specialist in charge of emerging markets outreach programs in the Bay Area, says with home prices falling and interest rates still very low, positive forces are converging, signaling it’s a good time for first-time homebuyers to purchase a home.

“It’s actually a perfect time for homebuyers, even first-time homebuyers. It may take a little more work, but the opportunities are there,” said Johnson.

CalHFA is a state agency that provides low interest financing and programs that create affordable housing opportunities for individuals within specified income ranges. The agency’s mission is to assist first-time homebuyers in achieving the dream of homeownership.

Johnson tells Realtors to inform their clients that CalHFA still offers an interest-only loan in which mortgage payments are discounted the first five years and the interest rate is fixed for the entire duration of the 35-year mortgage, so borrowers face no surprises when making monthly payments. He explains in some cases, a loan product can be combined with CalHFA down payment assistance programs and other government grants/loans, allowing homebuyers to shave hundreds of dollars off their monthly mortgage payments.

In San Mateo County, first-time homebuyers can qualify for a loan as long as they earn no more than $121,589 for a one-or two-person household or a maximum of $139,827 for a family of three or more. CalHFA also has guidelines for the maximum homeownership sales prices for eligibility purposes for new construction and existing (resale) homes. Sales price and income limits for each county are listed in the agency’s Web site. Also, unlike many banks which now require that borrowers have at least a 720 or higher credit score, CalHFA only requires a 620 credit score.

“We never loosened our standards, so we never had to tighten them up. Last year was our lowest default and foreclosure rate,” said Johnson. “It’s easy to get a loan, but it’s difficult to keep and maintain that loan. We want to make sure our clients maintain their loans.”

To learn more about CalHFA products and programs, visit www.calhfa.com

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in San Mateo County.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

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