Are graduating anesthesia residents still poor enough to qualify for this housing program???

[gasresident1]

So this is the worst time ever to be looking to buy a first time home. Housing prices in the bay area have spiked 20% each of the past two years, and interest rates are nearly the highest in decades.

The housing market will crash, no doubt about it. The bay area is most prone as these tech folks are losing 30-60% of their portfolios that they use as down payments with the stock market. Already the bidding wars in the area are cooling off.

The BIG question is, can current residency grads qualify for a new California program to get 10% of that 2-3 million dollar house off now. I'm a resident for one more month, I most definitely CURRENTLY make less than 80% the salary of the new area I'm moving too. I'm still single, about to get married in four months. I will look into this, but this could be a game changer. On a 2.5 million dollar house that is 250,000 that could be forgiven in five years.

New California Program Offers Help for First-Time Home Buyers. Here's How It Works

The California Housing Finance Agency (CalHFA) offers a Forgivable Equity Builder Loan program to first-time home buyers who qualify. Here's how to apply and find out if you're eligible.

www.nbclosangeles.com

WHO QUALIFIES FOR THE LOAN?​

To obtain the loan, the person must meet the following requirements:

• Have an income less than 80% of the area median income in the county where the property is located.
• Be a first-time home buyer.
• The property must be the primary residence.
• Complete the homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.

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[sevo00]

Are you sure housing market will crash? All the reports I’ve read say that prices will start to level off and not continue to rise substantially, but no crash like 2008. 2008 was different because people were buying homes with no down payment that were 5x their income. Issue now isn’t that people can’t afford these new homes (lots of people paying cash), it’s that there is low inventory.

 

[gasresident1]

Yes, but look at the reason why there was so much cash. The bull market of the past two years, and as far back as 2012 amassed great returns. As the feds keep increasing the rates, large cap growth will continue to get crushed. Easy money logically has to dwindle over the next 5 to 10 years of time. It's time for a recession. Yes, I'm a bear, but I think I'm an educated bear.

With mortgage rates going to 6% by the end of the month, more and more people are being priced out of the market. People don't remember the 9%+ interest rate of years and years ago. They remember the 2.8% from last year. The amount of house that a first time home buyer can afford actually got cut in half from interest rates when you think about it, in only a period of a few short months.

 

[Status Sciaticus]

Are you sure housing market will crash? All the reports I’ve read say that prices will start to level off and not continue to rise substantially, but no crash like 2008. 2008 was different because people were buying homes with no down payment that were 5x their income. Issue now isn’t that people can’t afford these new homes (lots of people paying cash), it’s that there is low inventory.

Where are you getting your information? Reporting agencies who may not want people to panic sell and screw up their firms/agencies holdings?
Nah man, look at the larger picture. Investment groups want to not have their future rental properties drop in value, or be able to purchase future homes to convert to rentals.

 

[kidthor]

OP - I certainly hope you quality for it and make it work.

That said, it's unfathomable that CA is now diverting millions and millions into an unsustainable housing market so that people who care barely afford a home can get one, while taxing me to pay for it. All the while I still can't afford a home!!! If they really wanted to control CA housing prices they would restrict foreign and corporate residential real estate purchasing - oh but those guys are big campaign donors.

This program will induce people to buy homes because they might now barely be able to afford one, right as the market may collapse. Then what? Will the state bail out those people because they induced a disaster?

Disgusting tax and spend by the state, yet again.

 

[aneftp]

It’s supply and demand. There is still a low inventory of homes available compared to 2006-2009.

Lending is a lot stricter these days. Gone are the days of negative amortization loans or interest only plus no down payment. People didn’t have any skin in the game. Easier for them to walk away.

 

[BLADEMDA]

The housing market will "correct" by about 5-10% and not CRASH like in 2008. It is different this time than 2008. But, I do expect a correction in housing just like we got in stocks. Some areas could even see declines of 15% or more but that's just pure speculation. With inflation and higher interest rates (means higher mortgage rates) a short term decline by 10% then a leveling off for a year or two seems the most likely scenario.

 

[BLADEMDA]

 

[BLADEMDA]

Belief is that prices won't crash this time​

It's enough to cause PTSD, or at least déjà vu, among those who lived through the last housing bubble. Still, many of those who rang alarm bells last time don't think we're in for a repeat of the catastrophic bursting of the bubble this time around.
"I don't think we'll see prices fall 20% to 30% once again," said Dean Baker, senior economist and co-founder of the Center for Economic Policy and Research. "I don't think there's that kind of story out there." But he cautioned that even a modest rise in interest rates could lead home prices to slide between 5% and 8%. The Federal Reserve expects it will soon start to taper the support it is providing to the economy.
Mark Zandi, chief economist at Moody's Analytics, said he is worried that the housing market is in for a hard landing. But the market and economy won't crumble like last time, he expects.
"The housing market is out of whack. It's not sustainable. It is overvalued, stretched and vulnerable as [mortgage] rates rise, and affordability gets crushed," he said. "But I'm not concerned we're going to have a crash."
He home prices increases will level out, falling in some areas of the country while gaining modestly in others.
Zandi, Baker and others believe much stronger underwriting standards on the overwhelming majority of home loans today will prevent a repeat of 2007. And the home building boom of the early years of this century is also missing -- there's no excess inventory of housing and no high vacancy rates. In fact, vacancy rates are near record lows, not record highs.

No one seems worried about a housing bubble. Just like last time the bubble burst

Housing prices are surging to new records with no end in sight. They're being fueled by historically low interest rates -- but also investors and economists' belief that the housing market has a unique ability to support runaway prices.

www.cnn.com