New Home Loan Programs in California
By Joe Taylor Jr.Local Lender Columnist
Mar 15, 2006
While the housing market in California continues to skyrocket, new home loanprograms make it possible for more people to afford houses in this high-priced state.
Home values throughout California continue to appreciate. For example, in the second quarter of 2005, the average home price in two cities in California increased more than 30 percent compared with the same quarter in 2004. With the lower utility costs of owning a new home and a wave of soaring home prices, California home shoppers can still afford new houses without straining their budgets.
Jumbo and Interest-Only Loans Bridge the Gaps
California lenders now offer jumbo new home loans at rates closer to traditional loans. You can potentially borrow more than $340,000 while avoiding the higher rates that typically come with larger mortgages.You can also find some new home loans offered as "interest only" packages. While somewhat riskier than traditional mortgages, an interest only loan can keep your monthly payments low while you wait for your home value to appreciate. Military personnel, graduate students, and other professionals that don't expect to stay in a home for more than a few years can make the most of these opportunities.
Assistance with New Home Loans for California Residents
For California residents struggling to find affordable housing in one of the world's highest-priced housing markets, California offers several programs to help. One program for teachers offers deferred down payment help and below-market mortgage interest rates. First-time home owners also can benefit from a variety of state programs offering similar assistance.Whether you want to upgrade to an energy-efficient home or enjoy the convenience of a new development, California offers a number of new home loan programs that can make your dream an affordable reality.
Sources
About the Author
Joe Taylor Jr. has covered business and finance news for Financial Times Television and CNBC. He coaches beginning mortgage brokers to provide better customer service and to understand creative financing opportunities.