California first time home buyers have good reason to be optimistic about buying their first home: four California counties – Placer, San Francisco, Orange and Los Angeles – average the biggest down payment assistance help in the nation. In Sacramento, the average amount of aid given to 1st time home buyers is a stunning $35,475.00.
The Sacramento Business Journal reports:
The assistance typically comes from government agencies or nonprofits through such programs as second mortgages. RealtyTrac vice president Daren Blomquist said these programs are proving highly helpful to buyers. The median home value in Placer County is around $350,000.
One on hand, Blomquist said, that trend is troubling because buyers have less of their own stake in the homes. A decade ago, when many buyers paid little or no down payment, they had fewer reservations about walking away when mortgages reset and prices dropped. That helped worsen the housing meltdown.
But on the other hand, recent buyers seem unlikely to repeat the pattern. In the last five years, Blomquist said, Federal Housing Administration loans have defaulted at rates within historical norms. Those loans typically require much lower down payments than others.
>> read the full article at bizjournals.com