Unlocking Homeownership Today Find out Who Qualifies for Down Payment Assistance in Today’s Market

Qualifies for Down Payment Assistance

Purchasing a home is a momentous milestone, but many people struggle to save enough money for a down payment. Fortunately, there are state and local programs available that provide down payment assistance to eligible homebuyers.

So, who qualifies for down payment assistance? Let’s take a closer look at what Down Payment assistance programs are all about and what it takes to qualify.

What is Down Payment Assistance?

Down payment assistance is any program or funding option that makes it easier for homebuyers to get the money they need for a down payment. Government agencies and nonprofits typically offer these programs as grants, forgivable loans, or deferred-payment loans.

Grants are the most common down payment assistance program for low-income home buyers. Grants do not need to be repaid, which makes them an excellent option for those who need help covering the upfront costs of buying a home.

Forgivable loan are another type of down payment assistance program that is forgiven after a set number of years as long as you continue to live in the home. Moving, you must repay the loan before the forgiveness period ends.

Deferred payment loans typically have a 0% interest rate and only need to be repaid once you sell, move, refinance your primary mortgage, or pay down your first loan.

How Does Down Payment Assistance Work?

To qualify for down payment assistance, you must meet specific income requirements and live in the home for a set period. Each program has its eligibility criteria, so it’s essential to speak with a  knowledgable loan officer who has put these types of loans together recently, to learn more about the current available programs in your area.

Who Qualifies for Down Payment Assistance?

Most government and charity programs have strict criteria for who qualifies as a first-time homebuyer. Most federal, state, and non-profit programs will consider you a first-time homebuyer if you have not owned a property in the past three years. However, you cannot have any rental or investment property ownership and still receive first-time buyer down payment assistance, even if you didn’t use or live in the property.

If you need assistance with a down payment, contact us for guidance on finding a program in your area and how to qualify and apply.

Remember, specific loan program availability and requirements may vary, so it’s always best to speak with an expert at California Platinum Loans who can guide you through the process.

Mortgage Applications Down 2nd Straight Week in December National Housing Survey says Homebuying Sentiment is Readjusting


Homebuying Sentiment is Readjusting

The Home Purchase Sentiment Index (HPSI) for Fannie Mae had its first upward movement in nine months in November, suggesting some hints that homebuyers might be accepting the new reality of housing prices and interest rates. The index, which is a summary of responses to six questions from the National Housing Survey (NHS) conducted each month, increased by 0.6 points from its all-time low in October. At 57.3 right now, it is still 17.4 points behind where it was a year ago.

Consumers’ views toward buying and selling a property, which makes up the index’s two main components, both slightly improved from their October levels but remained double-digits lower than in November of 2021. Positive responses to whether this was a good or poor time to buy a house grew by one point. Still, the net positive result—the sum of the positive and negative responses—was a negative 63% or 28 points less annually.

High mortgage rates continue to make housing unaffordable, and 62% of respondents anticipate further increases over the coming year, compared to only 10% who expect a decrease. The net of -53% is 1 point higher annually and 7 points higher than in October.

CoreLogic: Annual Home Price Growth Slows to Half of Spring Peak

According to CoreLogic, year-over-year home price growth in October was 10.1%. The index fell, and it is the lowest growth level since early 2021.

According to the company’s Home Price Index for October, several factors contributed to the slowing appreciation. Among these is the continued lack of inventory on the market. However, the lack of inventory is not due to buyer demand. Instead, it is more likely related to homeowners not wanting to sell due to the desire to keep their low-interest rate mortgage they probably obtained during the pandemic refinance and purchase craze. Additionally, the loss of purchasing power and the current state of the economy also contributed to lower housing demand.

Selma Hepp, interim lead of the Office of the Chief Economist with CoreLogic, noted that “while some housing markets have seen significant recalibration since the spring price peak and are likely to post losses in 2023, further deteriorating for-sale inventory, some relief in mortgage rate increases and relatively positive economic news may help eventually stabilize home prices.

MBA Weekly Survey Dec. 7, 2022: Applications Down 2nd Straight Week

According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending December 2, mortgage applications decreased by over 2%. However, refinance applications increased due to dropping interest rates.  The outcomes from the previous week have been modified to account for Thanksgiving Day.

On a seasonally adjusted basis, the Market Composite Index dropped by 1.9% from one week earlier. The unadjusted refinance index rose by 5% from the prior week. From 26.1% the previous week, the refinance portion of mortgage activity grew to 28.7% of all applications. Meanwhile, the seasonally adjusted Purchase Index fell by 3%.

Next week’s potential market-moving reports are:

  • Monday, December 12th – NY Fed Inflation Expectations, Federal budget
  • Tuesday, December 13th – Consumer Price Index, Core CPI 
  • Wednesday, December 14th – Federal Funds Rate Announcement, Fed Chair Jerome Powell News Conference
  • Thursday, December 15th – – Initial and Continuing Jobless Claims
  • Friday, December 16th – No Report   

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.

Fannie Mae Home Price Index Shows Growth Slow Down in Q3 Millennials are Likely to Buy Property in the next Two Years Due to an Improvement in Their Financial Situation

Home Price Growth

Home Price Growth Slowed Down in Q3

The Fannie Mae Home Price Index (FNM-HPI) measures the average quarterly price change for all single-family homes in the United States, excluding condos. It is a national index based on repeat transactions. According to the FNM-HPI, which was announced on Monday, home price growth decreased from 19.1% in Q2 2022 to 13.2% in Q3 2022 as mortgage rates increased and housing inventories rose. 

Doug Duncan, senior vice president and chief economist at Fannie Mae, said in a statement that the third-quarter slowdown in year-over-year home price growth resulted from rising mortgage rates and decreasing housing affordability. “Furthermore, the supply of completed, new single-family homes for sale has begun to rise, suggesting that homebuilders may also need to begin offering greater price concessions to move inventory. We expect these trends to continue in the coming months,” Duncan said.

Millennials versus Homeownership

The fastest-growing demographic in terms of homebuyers, millennials make up about one-fifth of the American population. They account for 43% of all new home purchases. However, compared to older generations, fewer millennials are purchasing homes

According to a Fannie Mae survey from 2019, more than half of millennials and Gen Zers (55%) believe housing is out of their price range. In addition, when compared to earlier generations, millennials are less likely to purchase homes for the following reasons:

Low mortgage rates, housing shortages, inflation, and growing building material costs put high housing costs at the top of the list. The National Association of REALTORS reports that the typical price of an existing home has increased to over $350,000—an all-time high.

Next is the substantial debt load that many millennials have. Sadly, more than 75 percent of millennials are also dealing with debt, which makes it extremely difficult to have enough money for a down payment on a house.

Finally, stricter loan requirements deter millennials from buying a home. According to a report from the Mortgage Bankers Association, mortgage credit availability decreased in June 2021. The Mortgage Credit Availability Index dropping by 8.5% in June of last year is another sign that lending criteria are tightening.

Millennials stated they are likely to buy a property in the next two years due to an improvement in their financial situation, which is consistent with healthy household balance sheets and rising incomes in the United States, according to the 2022 Millennial Home Improvement Survey.

Next week’s potential market-moving reports are:

  • Monday, October 24th – Chicago Fed National Activity Index, S&P U.S. Services PMI
  • Tuesday, October 25th – S&P Case-Shiller U.S. Home Price Index, FHFA U.S. Home Price Index
  • Wednesday, October 26th – New Home Sales (SAAR)
  • Thursday, October 27th – Initial Jobless Claims, Continuing Jobless Claims
  • Friday, October 28th – Employment Cost Index (SAAR), Pending Home Sales Index

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 310-905-5587.