There’s no question that high home prices in Silicon Valley makes it difficult for first-time home buyers to purchase homes. Difficult…but not necessarily impossible. Recently (past year), qualification requirements have eased somewhat for many higher balance programs including the minimum down payment required.
Alternate income sources, that weren’t considered in the past, are now allowed and, on the debt side of the qualification equation, adjustments have been made there as well. Deferred student loan payments are considered differently and minimum payment calculations for revolving debt have been reduced. Some have even eliminated the income deduction for unreimbursed employee expenses (form 2106) for employees with such expenses.
In addition, there are first-time home buyer programs, such as those available through CalHFA (California Housing Finance Agency), The Housing Trust of Silicon Valley and HUD sponsors the MCC (Mortgage Credit Certificate) program that provides a direct tax credit. Many of these programs provide loans at extremely low rates (3.0% currently), require no monthly payments and aren’t payable until the home is either sold or refinanced. Some of these programs can be combined with others to further enhance the benefit.
There are maximum income limitations and those limits may eliminate some borrowers who might be looking in the upper range of housing prices but some, who believe home ownership is out of reach for them, may learn otherwise. I’m happy to help anyone who may be interested in finding out.