California: Agency Boosts Ceiling for Financing

The ever-soaring cost of residential housing in California has forced the state's affordable housing agency to make yet another round of increases to the maximum price of homes it will finance for first-time buyers. Over the last year, the California Housing Finance Agency has boosted the price ceiling an average of more than 20 percent for homes eligible for below-market interest rate loans and other assistance programs. The latest upward revision leaves Southern California with some of the most dramatic increases over the last 12 months. Qualified buyers now can purchase a home up to $582,000, a 31 percent spike, in Ventura County; $453,000, or 28 percent more, in Riverside County; and $559,000, or 22 percent more, in Los Angeles County. Increases totaling 11 percent established maximum prices of $643,000 in San Francisco, $588,000 in San Diego County, and $453,000 in Sacramento County. Theresa Parker, the agency’s executive director, says the new price limits, which are raised periodically during the year, are the highest possible allowed by federal guidelines. “It’s very exciting to be able to increase these sales limits and provide more opportunities for first-time buyers in our state,” Parker says. “Owning a home is the dream of many Californians, and these revised limits add strength to CalHFA’s programs and will help bring that dream closer for many families."