California's "Dream For All" program helps first-time home buyers
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- Опубликовано: 9 фев 2025
- Joy Benedict takes a look at California's "Dream For All" program, which helps beneficiaries secure a down payment to purchase their first homes. She speaks with one couple that was able to get approval from the program and how it will help change their lives.
What a joke. Real estate investors have destroyed the housing market.
The money is a loan that must be repaid without interest when the home is sold, along with 20% of any appreciation in the home's value. For example, if a buyer receives $120,000 towards a $600,000 home and sells it 10 years later for $700,000, they would need to repay the initial down payment plus an additional $20,000.
It’s not the best and not the worst depending on the persons situation.
20% is a lot 😮
The government gave you that money interest free for equity. They own 20% of it. So when it's sold, it gets 20% of proceeds, which includes the appreciation.
Good for them on getting their first home! I still feel like the state took advantage of them by charging them 20% back when they sell the home, that's alot of money! Plus they have to pay back the down payment amount so in reality selling the home will not get them much money.
I’d looked into this early when it was offered a little over a year ago (I believe it was). The program comes at a time when prices are pretty much at all time highs, factor in that 20% back, as well as the the high interest rates and once the the real estate bubble bursts…most people who took/take advantage of such a program’s terms, are likely to be future owners of underwater mortgages. The 20% back could be a palatable trade off, were one to buy at the major low end of the market…where real equity could be earned, but this is setting many 1st time homebuyers up for failure. Imo
Not if they plan on making it their forever home.
@@eric1302 Unfortunately, first time buyers aren’t often in their forever homes. Though, even if they were….if they buy on the bubble and the market crashes(stating the obvious, I know), their mortgage remains the same and they lose the equity. Nobody wants to be paying down a 500k loan on a (California) home worth 350k. It could be years before it rebounds to the purchase price, also limiting one’s ability to accept work that’s beyond realistic commuting distance, unless they’re willing to sell and take a major loss. My guess, is if they could sustain such losses, they wouldn’t qualify for the program. Now, Texas has been pretty innovative and entrepreneurial in developing 200k-300k developments. They’re very economical, considering. Granted the same % swings could come with a bubble burst, but the overall dollar value loss would be significantly lower. If they continue this program and others similar AFTER the next major market dip, many new home owners would be in a much more advantageous position. Even those selling, if they purchased their home within the past 10-15 years, could very likely still MAKE money from their original purchase, since they bought at the low end of the market. But I agree with your statement. If buyers had the ability to sit it out and their qualifiers were thorough in their income assessments, they could theoretically stay put and remain virtually unaffected by a slumping real estate market.
Can always do a 1031 exchange and use the money from the sale of the 1st home for another property and then wouldn’t have to worry about the 20% equity for the second home.
@@oeckstei The buyers cannot do a 1031 exchange on a primary residence. 1031 exchanges only apply to investment properties. And since the money to help these people buy a home comes from taxes paid by the citizens of California I believe it is only appropriate that they receive a return on their money. Otherwise, why would the working citizens of California give their money to strangers to buy a home versus help their own family and friends? IMHO a question we have to ask ourselves.
homes are falling appart selling for 1 million in my city its nuts
Need to hire home inspectors to bring the value down if its in need of repairs
The major problem is Called Greed
Ain't no Damm supply and demand
My dream is to live in a California where people don't need to rely on Government subsidies in order to afford to live here....
So there is 18k applicants who are first time home buyers but foreign companies buy in mass to rent out and make business while not living in this country , ? A law needs to be put in place that buyers of any property in the US needs to live in the home for at least 3 years
There definitely needs to be parameters on how long they must live in the house and if they rent it out or have to sell before the 3 years how that would be handled.
40 year mortgages
It’s not your home until you pay it off
Property taxes, never yours. 😂
@@chinaboss6683 that’s correct but a paid off home is better than owing
80% of it In this case
It ain’t a supply & demand problem. It’s an INVESTOR problem. Get Wall Street out of our housing! We have to stand up to them!
1350$ less
God damn how much is the mortgage
Like $3500 with todays interest rates of 7%
Lol, ur right. Also that would be for a home in Victorville or any of those towns in the desert. It would be more if u live in civilization.
We dont have a supply/demand problem, we have a problem of too many real estate companies/agents owning to many homes, driving up the price and the average person doesnt have the funds to compete against them. Too bad we cant seem to figure out what to do about it.
We have a very serious supply/demand problem in California. It is not real estate agens owning too many homes. I do agree that corporations (all) should not be allowed to purchase homes.
The government needs to keep their hands out of our pockets and stop taxing $0.60 per dollar
Unbelievable
One million dollars California house meant you have to pay Manison Tax.
1st time homebuyer is a tough requirement to go thru
1st generation home buyer! Wtf
yeah, a place to finally call home.
no wonder they ended the broadcast
showing the heavens
good luck, even after ya drop dead
trying to find that.
Last call for Inner Mongolia. Last call for Outer Mongolia. Yurt and camel included.
yeah right when average price is almost a million!!!! who can afford that????
Part of the problem is not supply and demand. There’s houses being built left and right where I live in California, small town in the South Bay getting over crowded with people from the bay
Their conveniently leavout that one of the borrowers has to be 1st generation buyer..aka illegal immigrant. This is sickening
You better be making 60k+ a year still 😂 80% of the US population is under 50k/yr
what a JOKE!!!! People sleeping in their cars???? Too expensive to live in California
Vote Blue 😊
What a joke!
Dream for all 😂😂