More options are opening the door to homeownership

Homeownership is a keystone of the American Dream, but for many of today's Californians it's a goal that feels out of reach. However, looking in the right places to find creative solutions might make the difference between owning and renting.
As America celebrates National Homeownership Month this June, it's a good time to become aware of programs offered by your city, county and local nonprofits. Each of these often offer underused programs that can provide a big boost for first-time home buyers.
At the state level, the California Housing Finance Agency (CalHFA) lends a helping hand to low and moderate income first-time home buyers. Last year, the Agency assisted more than 5,300 families with their homeownership dream, utilizing more than $1.3 billion in non-taxpayer funds.
CalHFA offers eight different down payment assistance programs, and partners with more than 250 cities, counties and other housing organizations to provide down payment and closing cost assistance for first-time home buyers.
In the last 15 months, CalHFA has introduced several new products that make becoming a homeowner more affordable.
This spring, CalHFA introduced a 40-Year Fixed Mortgage product. With this loan, borrowers can qualify by meeting lower monthly payments than on a traditional, 30-year mortgage.
A year ago, we introduced interest only PLUS, a loan program that can reduce mortgage payments by hundreds of dollars per month because borrowers only pay interest for the first five years of a 35-year, fixed rate mortgage loan.
Unlike other "interest only" loan programs that have rates that can balloon after the interest-only period, this loan comes with a guaranteed low fixed interest rate for the entire 35-year term.
Best of all, home buyers can combine many of CalHFA's loan products with multiple down payment programs.
Layering programs at the state and local level can be key, especially given that the most recent figures from the California Association of Realtors show median home prices statewide hovering over $550,000.
While CalHFA's 30-, 35-, and 40-year loans help get people into homes, another benefit helps them stay there.
HomeOpeners, a Mortgage Protection Program, allows borrowers who use CalHFA's conventional home mortgage programs with CalHFA mortgage insurance to have up to $2,500 of their monthly mortgage paid for as long as six months if they lose their job.
CalHFA's programs are available to more people than you might think.
In Placer County, a family of three or more can make up to $91,560 and still fall within the federally mandated income limits that CalHFA requires. Additionally, the family could buy a home with a price tag as high $429,620. These limits mean there are more options, and more homes available, for the first-time home buyer using CalHFA's financing.
Even in the best of circumstances, buying a home is a scary undertaking, but with a little extra research, first-time home buyers can find resources to help them meet the challenge. Even when National Homeownership Month ends, state and local programs will continue to do everything they can to make sure the dream of homeownership stays alive for all Californians.
Theresa A. Parker is the Executive Director of the California Housing Finance Agency. More information about CalHFA and their variety of first-time homeownership programs can be found at www.calhfa.ca.gov or by calling (877) 9-CalHFA (877-922-5432).