04/21/2023
Nothing like disincentivizing efforts to work harder and do more to better your family’s situation than to be told you’re going to be charged more for the effort… The above article states “Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.” For all intents and purposes that $40 equates to roughly $7,000 less purchasing power for a home buyer looking at a $400k home (hard to find in CA) coming in with 3.5% down and a 6.5% interest rate.
In an effort to again help first time buyers, CA implemented the short lived DFA home loan program where nearly $300MM was offered to what amounted to just over 2,500 eligible recipients who will in the future need to pay back their 20% down payment “gift” in addition to giving up 20% of their homes equity. This program lasted less than two weeks.
The quote “I’m from the government and I’m here to help” comes to mind. I work with many hard working first time home buyers and I’m not so sure this is the help everyone needs nor wants…
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