Posted on 03/17/2014 8:48:44 PM PDT by Olog-hai
San Francisco Mayor Ed Lee wants to help you buy your first home.
So much so, in fact, that the city is now willing to lend certain first-time home buyers up to $200,000 toward the down payment on their first house or condominium in San Francisco.
That’s real money, but in a city where the median sales price was $925,000 in February, is $200,000 enough to make a difference to low-income and middle-class residents being priced out of the city by the tech boom? […]
The new limit, which goes into effect this month, will allow some home buyers to afford homes costing $600,000 to $700,000, which isn’t nearly enough for a home in high-end neighborhoods such as Russian Hill or Pacific Heights but offers options in more distant parts of the city like the Portola, Visitacion Valley and the Bayview, real estate listings show. …
(Excerpt) Read more at sfgate.com ...
It is not a gift, it is a “LOAN”.
Which means it has to be paid back WITH INTEREST.
Anyone recall the zero down payment mortgages?
All that did was increased your monthly payment compared
to the amount if you had put down 20%. And it increased
the chance yours would become a sub-prime mortgage.
It’s free money from mayor Lesko!!
Borrow money for your down payment to borrow more money? Genius! What could possibly go wrong with that?
I seen this movie before.
Who gets the loans?
Who is the lender?
Who originates them? Services them?
Who makes the loan payments if Mr. or Mrs. Joe Q. Public defaults?
Who is pushing cash into Lee’s coffers...the $64,000 question.
bubble.
bursting.
or
earthquake. literally underwater.
isn’t this illegal?
“It is not a gift, it is a “LOAN”. Which means it has to be paid back WITH INTEREST.”
Exactly; what a generous offer of “debt slavery for life”...
And not that wonderful a deal for the “masters” either.
“And not that wonderful a deal for the “masters” either.”
Why not? They don’t live there; they control the behavior of those on the hook (including swaying them politically).
“Borrow money for your down payment to borrow more money? Genius! What could possibly go wrong with that?”
I expect many high-cost areas (not synonymous with “nice”; just high-cost) will be doing things like this to keep a taxable population shackled to properties for thirty years (at a minimum). Something has to be done to prevent the flight of productive workers and corporations from hostile business/taxpayer environments; the left won’t simply stand by as the hands that feed flee.
Newark NJ is proposing some kind of “teachers village” in their downtown, in the hopes of keeping white consumers in the area after dark (and hitting them up for property taxes to boot). The programs of the left will have to be closed down if their funding escapes to another jurisdiction.
Let's do this again, shall we?!
Absolutely ridiculous! SF is expensive. Cheaper housing is available in surrounding suburbs, and that is the option taken by most workers who commute into the City daily. SF will cost $900G for a home, and commuting 15 miles can bring that down to half the cost for a home. Most workers have the sense to buy what they can afford. And City leaders have no sense at all.
According to a link at the same site, the median-priced home in the city and county of San Francisco sold for $813,000 in December. The median home price in Alameda County during the same time period, at $525,000, and the median home price in Contra Costa County at $405,000. Half the price just across the bay, short trip by bridge or BART.
“When the homeowner sells or refinances, the loan has to be paid off along with a percentage of the property’s appreciation, depending on how much of the purchase price the city covered.”
Sounds like the city will make out on the deal as well since they will get the loan paid back and some.
And when they default it will be the Evil Banksters who tricked these poor people into borrowing the money.....
Used to be. I remember signing a statement that no one had lent me money for my down payment.
If you have to borrow 200 thousand to make a down payment on 900 thousand you have a problem.
Yep!
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