The California Housing Finance Agency, based in Sacramento, announced two new programs intended to increase home ownership throughout the state.
The loan programs became available in San Diego April 1.
One program allows borrowers to pay interest only during the first five years of a 35-year, fixed-rate mortgage loan. Called the interest-only plus loan, the product is a way to reduce mortgage payments by hundreds of dollars per month for first-time homebuyers.
The second program is called HomeOpeners, and offers mortgage protection that provides a benefit for borrowers who use mortgage insurance on conventional loans as well as riskier interest-only loans.
Last year in San Diego County, the agency made 442 loans valued at more than $100 million. The moderate-income loans from the agency are available to two-person households with combined incomes of up to $82,000 for purchases of homes priced at up to $486,000.
“With the increasing cost of real estate, the challenge for Californians to purchase their first home has never been greater,” said Theresa Parker, executive director of the agency.
“Together, these programs will help more Californians buy homes and keep their homes even if they suffer short-term unemployment,” she added.
The California Housing Finance Agency was established by the state in 1975 to increase accessibility to affordable housing in the state.
During the past 30 years, the agency has invested more than $13 billion in non-taxpayer funds to help more than 130,000 families in California obtain affordable mortgages.
In San Diego alone, the agency has handled 8,720 loans, valued at more than $981 million since its inception.