Our income is about $70,000 annually and we have no debt other than student loans. We have about $25,000 saved. In an area where an "okay" house will run you about $700,000 - how in the world will we ever be able to own?
2007-03-24 07:27:57 · 9 answers · asked by KBS 3 in Business & Finance ➔ Renting & Real Estate
The situation there is grim but will get better as many of those option arms and neg am loans start defaulting. You might get very lucky and find a sweet deal somewhere as they do exist. You won't find such a deal in the mls but there are probate properties and other ways to get into an affordable house. California has a market that has grown beyond tangible measure and a correction is inevitable. The state attracts a lot of money due to its huge variety of attractions. There are however a large number of reasons for some to avoid a move to California also. As a first time buyer there are really no programs for jumbo loans that will help you much if at all. Sellers desperate for a sale with a large equity position might be able to carry a second. Some will as most of that equity was artificially created. If you can find such a seller you might have a chance but your income will also only qualify you so far loan wise on anything but a option arm. The loan guidelines for those loans will be tightened as they are as much a culprit as sub prime has been in the demise of many lenders.
2007-03-24 08:07:13 · answer #1 · answered by Kevin H 4 · 2⤊ 0⤋
California Housing (CALHFA) offers programs for first time buyers. You may be able to receive assistance in purchasing your first home if you qualify for these programs.
My friend who lives in CA purchased a two family house with a friend. This was the only way they both could purchase a house because they split the mortgage in half. Just an idea if you have that option.
2007-03-25 13:10:38 · answer #2 · answered by S C 3 · 0⤊ 0⤋
KBS,
I live in the West Los Angeles/Beverly Hills area. A condo next door to me is on the market for $750,000!
The only homes that are almost affordable in the LA area are in neighborhoods I do not want to live in.
According to past trends, the housing market will fall by 20% in the next few years. On top of that, it will be a buyers market, so you can lower the price even more.
2007-03-24 16:11:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The only way to afford it is with a large combined income and a heck of a downpayment. Or buy a smaller "starter" home with the hopes of building some equity over the years and hope you don't get priced out of the market in several years. I don't believe in unconventional methods of financing because too many people get into trouble that way.
2007-03-24 14:39:07 · answer #4 · answered by bpl 5 · 0⤊ 0⤋
My husband and I are in the exact same boat. We're considering moving out of state. That or we wait until either of our parents are gone and move into their house. =P
Just keep saving, and check your credit every year and do what you can to build it up. Look into repos. Sometimes the past owners trash them a bit when they know they're going to lose the house, and since they didn't have money sometimes they're not as well kept as the other houses in the neighborhood. But a bad house in a good neighborhood is better than a good house in a bad neighborhood. Also look into areas like Fontana, Rialto, San Bernardino... Places that are still "developing" and still have land to grow into tend to be cheaper than say the San Fernando Valley or Orange County.
2007-03-24 14:34:53 · answer #5 · answered by calliope320 4 · 0⤊ 0⤋
I am a realtor in Southern California--Santa Clarita area and you can get much more than an okay home for that price. The condos in my area start at around 250K, or a townhome will run about 350K or a SFD will start at about 425K depending on the amenities, area, etc. Where are you looking to buy? Where do you work? Are you willing to relocate? Can you commute? I know of areas even less expensive than Santa Clarita. Please feel free to contact me about any questions you might have. I work extensively with first time home buyers to get them the financing that they are comfortable with, and will be more than happy to work with you! www.TerraBruns.com
2007-03-24 14:52:38 · answer #6 · answered by Terra B 2 · 0⤊ 0⤋
Only way I know of is an option arm program where they have introductory rates of 1-3%. You can get that minimum payment fixed for five years however it's a negative amortization situation... so it depends on how long you plan to live there as to if this is a viable option for you.
2007-03-24 14:32:39 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Try checking into Hud homes, Reo's, and forclosure sites. There are several government seizure sites that have public auctions for example www.bid4assets.com. Most of the government sites can be accessed through this website http://www.hud.gov/homes/index.cfm . Poke around this site and you may be taken to other government sites. Best of luck!
2007-03-24 14:41:30 · answer #8 · answered by shasta559 2 · 0⤊ 0⤋
Move to Las Vegas where its 300k for an average house and 700k will buy a beauty of a place
2007-03-25 05:27:38 · answer #9 · answered by mstrofmymindyesthisistrue 1 · 0⤊ 0⤋