How can normal people afford a house in California?

Answer 1

The State of California and local cities and municipalities have contemplated this very question.

The answer is the California Housing Finance Agency or CalHFA
www.CalHFA.org and City Down-payment Assistance Programs (DAPs)

CalHFA helps first time homebuyers obtain mortgages with below market rate interest rates. As of Aug 22, 2006 the rate for a 30 year fixed mortgage for a purchase price up to $614,000 is 5.75%

There are also silent seconds that you may also qualify for that do not require payment until the home is sold, refied or the 1st mortgage becomes due. These seconds can cover closing costs and a portion of your down payment.

For your local cities check their web sites and look fo rtheir housing department. This should have information on their DAPs.

~Danke Schoen

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Answer 2

They can't! A recent study showed that in order for you to afford a median priced home in L.A. ($450 - $500k) your household income would have to be $120 - $150k. However the average household income in L.A. is $60k. So how do people afford to buy a house? Simple, by unscrupulous lenders and real estate agents that should be locked up!!! Don't listen to those who tell you that they could get you in a house that you know it is out of your reach. They can get you in trough interest only, negative amortization, and 60 year loans. This is a nightmare that is going to be plaguing those who fell for their lies. Personally I am waiting until these people realize that they are in way over their heads and have no choice but to let their houses go into foreclosures... then that is when I finally buy my house.

p.s. Also do not go into a 100% financing, because once the market settles and corrects itself, the property values are going to decrease and you will be upside down on your loan.

Answer 3

Normal people can't afford a house in California ....

Answer 4

I was just talking to my buddy outside about his new house in Garden Grove. His monthly note on the property is $5k... This is for an average, built in 1960, 1400sq/ft house.

Personally, I wouldn't know how to live on even 100k/yr here, it seems the comfort level (income wise) is 150k and up. Guess that's why there are so many divorces, people getting married just to afford a house payment then realizing they can't stand the fugger they are living with.

Answer 5

I couldn't afford to buy my house in today's market. I bought it in 1980. That's the only way I can afford to own my own home. I don't know how young families can even afford rent now. It is outragious. I guess you just have to wait and inherit a house now. My youngest son can't even rent a room in someone's home on his current salary. We purchased a used motor home and he lives in that in an RV park. If the rent on that space keeps going up, I'm not sure what he will do.

Answer 6

look for a house in South Central LA you will eventually get use to the drive-bys, police chopper going around, car and belongings getting stolen, home broken into by all the meth and crack heads, you should find something for about $350,000 across the street from the drug dealers.man California is great !

Answer 7

Normal people don't live in California

Answer 8

They can't they just have 100% loans with arms or interest only loans. Just wait out the housing market, everything reverts to it's mean.......EVERYTHING. Housing has never been an exception to this rule. What goes up must come down. Unfortunately, when it comes down, which it is right now, it's going to come down hard on people. Oh well.

Answer 9

E-mail me and we'll see how normal you are. ;)

Seriously, Ihave to disagree with the negativecommentsabout the 100%financingand interest only loans. Ipersonally believe it's better to use a bank to leverage your purchase.

Regards

Answer 10

well lets see first of all we have stated 100% financing that any one could offard and so on so forth. Lets start with your information how much do you make. Do you have a job. Whats your credit like you know stuff like that. email me at [e-mail]