Obstacles for First-time Homebuyers Similar in S.F. and Mammoth

March 18, 2014

The SFGate recently posted an article regarding the city’s efforts to increase their down payment assistance from $100,000 to $200,000 per household. According to the Mayor, Ed Lee,

“Our city’s middle class is deeply affected by the housing crunch
– they make too much to qualify
for our traditional affordable housing,
but not enough to afford
much of the new market-rate construction.”

Many first-time homebuyers face the same obstacle in Mammoth Lakes. With the average single family home priced at $575,000 in 2013 and the average condo priced at $260,500, many middle-management households cannot afford to buy locally. This paradigm creates long commutes, contributing to environmental degradation, less time recharging with family, and health issues.

down-payment Einstein

The new down payment program in San Francisco will lend secondary, silent loans with local funding to homebuyers earning up to 120% of the Area Median Income (AMI). This covers an essential gap in other sources which often only lend to homebuyers earning up to 80% AMI. The loans are repaid when the homeowner sells or refinances the home and then re-used to help another household achieve their goal of homeownership.

Click here, to read more about the innovative and proactive program in San Francisco.