The rate of home-ownership in Los Angeles county has been declining since the data is available: from more than 51.5% in 2009 to less than 48.5% in 2016. By the way, Los Angeles has been trailing California 53.8% and the US 63.4% for the same period. There are signs of improvement in 2017 for California 54.4% and the US 63.9%, however these levels are still comparable to the lowest levels in the last 25 years (see charts bellow).
The rental market in California is very tight also signaling pressure for rents to go up. The rate of rental vacancy in 2016 was 3.6%, the lowest level since 1984, while 2017 shows a little improvement to 4.3%.
Fixed principal + interest payment for 30 years.
While the property taxes may increase slightly due to the reassessment of the value of your property, your principal + interest payment remains fixed for 30 years. Example: if you buy your house for $400,000 and the county reassesses your home by 3% to $412,000 your monthly payment might increase by $12,50. As a reference, if your rent is $2,000 and rents go up by 3% then your rent goes up by $60.
Assistance for Unemployed Homeowners.
While the number of reasons to own a home abound, many still feel worried to invest in home-ownership based on a fear that they may loose their jobs and consequently loose the house. For those, I have great news. FHA loans include the unemployment assistance. If you have an FHA loan you may have your mortgage payment reduced or suspended while you seek re-employment.
- Home Affordable Unemployment Program (UP): If you are having a tough time making your mortgage payments because you are unemployed, you may be eligible for UP. UP provides a temporary reduction or suspension of mortgage payments for at least twelve months while you seek re-employment.
- Emergency Homeowners’ Loan Program (EHLP)
- FHA Special Forbearance: If you are having difficulty making mortgage payments because you are unemployed and have no other sources of income, you may be eligible for FHA’s Special Forbearance. FHA now requires servicers to extend the forbearance period, by offering a reduced or suspended mortgage payment for up to twelve months, for FHA borrowers who qualify for the program.
First Time Home Buyer Programs.
If you want to buy a house, however you don’t have enough savings, you may be able to qualify with the California down-payment assistance for CA residents. If you think your credit is not good enough, we provide free credit evaluation, and a path for your home-ownership. If you thing the mortgage payment might be too high, there is a Federal Tax Credit (MCC) that may help you lower the impact of the mortgage payment. Special lower interest rate and lower mortgage insurance for first time home buyers may help reduce your payment.
Free, no obligation personal(family) consultation.
Each person(family) has a different situation and expectation. If you want to become a home owner then I want to listen from you. Please contact Celso your Loan Consultant at (562) 704-1651 to schedule a free, no obligation personal consultation.