For prospective homebuyers in San Diego, one of the prime obstacles toward homeownership is often making the down payment.
A program that could help more homebuyers in San Diego and throughout the state to get around this obstacle is the California Dream for All Program.
California Senate President Pro Tempore Toni Atkins (D-San Diego) submitted the proposal, which would require a $1 billion investment in the 2022-23 state budget.
What Would the California Dream for All Program Provide?
Under the program, a qualifying home buyer would receive down payment assistance of up to 17% of the home’s purchase price.
This assistance would take the form of a loan, to be reimbursed later upon the sale of the home or a refinance.
CBS 8 recently interviewed Maureen Martin to get her feedback on the program and its potential benefits for homebuyers.
Maureen said, “It totally could, absolutely [help families afford a home]. It is just going to depend on the purchase price, and their income levels, as to whether or not they qualify for it.”
The median cost to buy a home in San Diego County is more than $840,000 at the time of this writing.
That means that a family that needs to put 20% down on a home could require $168,000 upfront just for the down payment.
While there are some types of mortgages such as FHA loans, VA loans and USDA loans that California homebuyers can use to purchase homes with low or no down payment, not everybody qualifies for these types of loans.
When purchasing a home with an FHA loan or conventional loan and a down payment of less than 20%, homebuyers must pay for mortgage insurance, which can add considerably to their costs.
The California Dream for All Program would make it possible to avoid the mortgage insurance requirement while still putting down less cash upfront to purchase a home.
Contact a Mortgage Specialist Today!
To read the rest of Maureen’s comments, please check out the CBS 8 article. You can learn more about the California Dream for All Program by visiting this post at the California Senate. Contact us today at (619) 857-7191 to schedule a consultation.