SAN FRANCSISCO-In an update to a previous story on the Federal Home Loan Bank of San Franciscoallocating $10 million to its 2013 Workforce Initiative Subsidy for Homeownership and Individual Development and Empowerment Account first-time homebuyer programs, in the aftermath of the foreclosure crisis, aspirations for homeownership have not gone away. In fact, ownership is still an important tool for wealth-building in low- and moderate-income communities, says Marietta Nùñez, VP, who directs the Bank's WISH and IDEA programs.
“Our programs complement the efforts of community organizations and government agencies to create opportunities for homeownership in this post-crisis transition time,” she says.
WISH grants are targeted to working families and individuals who are ready to make the transition from renting to owning, according to a prepared statement. The program can complement or supplement a variety of local, state, and federal homeownership programs. The IDEA program, which has been at the forefront of asset-building initiatives since its inception, is directed at homebuyers who have been saving for the purchase of their first home through an Individual Development Account or participating in their local housing authority's Family Self-Sufficiency homeownership program or a lease-to-own program administered by a nonprofit or government entity.
Pictured above is an example of a WISH fulfilled family. When the Walz-Smith family first moved into their Bay Point neighborhood, some of the “neighbors” took some getting used to. “There are cows up the street,” said Maria Walz-Smith. “We're in the country.” For the owners of a three-bedroom, two-and-a-half-bath, 1,580-square-foot home, it's a welcome change from the San Francisco home they had inhabited for 12 years.
On the eve of their 10th wedding anniversary they learned that their landlord would be moving back into the two-bedroom home they were renting. The couple decided that the time was right to pursue homeownership, and since they loved the neighborhood they lived in, that's where they started their search.
“At the time, the asking price for a one-bedroom home in the area was around $695,000,” said Mr. Walz-Smith. Neither the asking price nor the size would work for the couple and their two sons, Harrison and Kyle.
The couple decided to search for a home in the neighboring city of Oakland. After looking at several homes they liked, they bid on the perfect three-bedroom home but were outbid by more than $100,000. So, they decided to cast a wider net in hunting for a home.
The Walz-Smith's were able to get $25,000 from Contra Costa County's Mortgage Credit Certificate Program and an additional $60,000 subsidy through the county's program for below market-rate homes. But commuting to work from Bay Point was another stumbling block. To ease the strain of a commute that would be more than 120 miles roundtrip, Richard decided to move to a position in the company that offered earlier hours, virtually eliminating traffic from his commute. The couple didn't feel that it was feasible for Maria to commute nearly 100 miles roundtrip any more than three days per week.
But, in order for her to switch to a part-time schedule and still afford the mortgage on the home, the family needed approximately $15,000 to $20,000 more in assistance.
That's where the Federal Home Loan Bank of San Francisco's WISH Program came into play. The couple heard about WISH through Gateway Bank and First Home Inc. The program provides grants through Bank members to help qualified homebuyers purchase homes in high-cost areas.
According to a recent survey from Redfin, rising prices and inventory shortage are worrying homebuyers. The Seattle-based company recently released a survey on the subject showing that so far in 2013, the company has seen demand surge and inventory shrink, a very frustrating combination for homebuyers looking to buy while interest rates are still low and before home prices rise much more. “Most homebuyers are facing fierce competition, with many homes receiving dozens of offers at once. Redfin agents advise clients to be prepared before they enter the market by lining up financing in advance and understanding the absolute highest price they can afford before entering a bidding war where emotions are likely to take over.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
