Can you afford to purchase a home?

According to a survey done in 2018 by the Natioinal Association of Realtors, almost 50% of non-homeowners don’t think they can afford a home.

They also don’t know that they could qualify for down payment assistance to get into a home which is frequently the barrier for most people to own a home.  

I did the numbers on a scenario in Bakersfield using the current median income at 51,840 for Kern County and the median sold home price at 242,000. A first time buyer with the median income does qualify to purchase a median price home in Bakersfield. (Assuming they don’t have a lot of other debt)

Using the CalHFA down payment assistance program and seller paying 3% towards closing cost, a buyer could get into a home with ZERO out of pocket cost, besides their earnest money deposit, which could be refunded to them at close of escrow. 

We dont have an affordability problem, we have an information problem.  Call today to schedule a free consultation on your mortgage options.

 Mortgage rates: Last week rates remained unchanged.  The markets became hopeful that the looming government shutdown would be avoided and progress would be made with China on trade. This taking away some of that “fear factor” we have discussed that has helped rates remain low.   However, today mortgage rates improving some on the sharply weaker than expected data released on retail and auto sales for December, finally released (it was delayed because of shutdown).  Stocks suffering but mortgage rates improving on the news.  

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.