This week in Real Estate - 10-23-20015 - Affordability is falling, but there is help

The affordability is dropping.

There are many factors that are included in the Housing Affordability Index (HAI), but Median Income, Median Price and Interest rates are the three that have the most impact on the index.

As you know, prices are increasing. Up nearly 80% since the low in 2012.

Interest rates are up as well. You may not believe it, but 4% interest rates are still incredibly low as compared to historical averages, but they are up from the 3.25-3.5% rates we had in the beginning of 2013.

And incomes are up, but not that much. The results, affordability has dropped significantly.

In Q2 2012, the Housing Affordability Index (HAI) for Napa County was 50% in Solano County it was 77%. The latest report for Q2 2015 has the HAI for Napa County at 23% and Solano County at 46%

-Kris

Helping with Affordability

The Cities of Napa, American Canyon, Calistoga and Yountville all have GREAT opportunities for down payment assistance programs for first time home buyers

In Napa, you can get up to $150,000 or 30% of you purchase price. In American Canyon you can get up to $100,000.

They have programs for people trying to purchase mobile homes as well!

The money is always in the form of a silent second (NO PAYMENTS) and some of the loans are forgiven/dismissed if you live in the property for the entire length of the loan!

In addition they have programs to help low income families repair the homes they are currently living in.

These programs are great, but there is an income restriction catch. For a household of 2 people you need to make less than $52,750 for a household of 4 people it is $65,900.

If those income qualifications take you out of the running there is a county program that just may work as well.

The County will lend you up to 10% of the purchase price.

You have to work in Napa County and the home you purchase must be within 20 mile radius (as the crow flies) of your work.

The good news the income for a household of 2 people less than $82,680 for a household of 4 people it is $102,320.

These are both great programs and the money will not be available for ever, so get shopping.

For more information regarding these programs please email me.

-Kris