First-time home buyers in Californiawill be eligible to receive some extra help from the state if they are looking to purchase a home in the neighborhoods hit hardest by the recent foreclosure crisis.
Gov. Arnold Schwarzenegger Monday morning announced that $200 million in state loans will be available to those looking to buy their first home.
"This program will not only make it easier for families to purchase their first home, but will also help stabilize neighborhoods that have homes sitting empty," Schwarzenegger said during a news conference in Stockton. "No one single effort can solve our nationwide housing crisis, but together these measures make an important difference in California's neighborhoods."
The new program is called the Community Stabilization Home Loan Program. It's meant to help first-time buyers purchase homes at lower costs with lower interest rates, 100 percentfinancing in some cases,and even a deal on mortgage insurance.
It's specifically designed for first-time home buyers and targets some the hardest-hit areas of the valley, including parts of Stockton and Modesto as well as other areas like the Inland Empire in Southern California. It will use tax-exempt bonds to provide 100 percent financing to first-time buyers.
Who's Eligible?
First-time homebuyers purchasing homes in select ZIP codes in California. See ZIP codes
here.
Investors not eligible. (Bummer, but this is still a way to stabilize hard hit markets.)
See income limits
here.
What Properties Are Eligible?
Existing single-family homes. See list of homes from Fannie Mae
here; CitiMortgage homes list
here;HomeEq Servicing Property List
here; Wells Fargo
here.
