The California housing market is historically one of the most expensive in the country, and prices continue to rise. According to Zillow, the median home value in California is $800,172 as of June 2022, an increase of 21.2% over the past year. Don’t panic! It is possible to secure a first-time home buyer loan or grant to help with the cost of a down payment and/or closing costs. In this post, we’ll discuss California home loans, first-time homebuyer advice, and recent housing market updates.
California Housing Market Updates
What is the current state of the California housing market?
The high cost of living in California, combined with the recent rise in mortgage rates, has made buying a home increasingly difficult, especially for first-time buyers. As of June 2022, current rates in California are 5.94% for a 30-year fixed, 5.16% for a 15-year fixed, and 3.81% for a 5/1 adjustable-rate mortgage (ARM). This means that monthly mortgage payments have increased significantly over the past year.
Advice for First-Time California Homebuyers
Despite the challenges, California remains a desirable place to live, and many people are still interested in purchasing a home in the state. If you’re thinking about buying a home in California, it’s important to be aware of the current market conditions and trends. Here are a few tips for first-time homebuyers in California:
Be realistic about your budget: With home prices on the rise, it’s important to have a clear idea of how much you can afford to spend. Keep in mind that you’ll also need to factor in additional costs such as property taxes, insurance, and repairs and maintenance.
Get pre-approved for a mortgage: Once you know how much you can afford to spend, get in touch with a lender and get pre-approved for a loan. This will give you a better idea of what kind of homes are within your budget and help you move quickly when you find the right one.
Make a strong offer: In a competitive market, it’s important to make a strong offer on the home you want. Be prepared to pay above the asking price if necessary and have your financing in order so that you can close quickly.
Be flexible: With the California housing market being so competitive, it’s important to be flexible in your search. Be open to different types of homes, locations, and price ranges.
California Home Loan Options
There are a number of loan programs available to first-time homebuyers in California. The CalHFA First-Time Homebuyer Program, for example, offers low-interest rates and down payment assistance for qualified buyers. Other options include the USDA Rural Development Loan, which is available to buyers in rural areas, and the VA Loan, which is available to eligible military members and veterans.
For more information on California home loans and down payment assistance programs, contact The Mortage Genie today. We’re here to help you find the best financing option for your needs.