The $6,000 maximum an IDA can contribute toward buying a home doesn't go too far in the Bay Area, where the median price of a new or used condo or single-family home in May was $660,000, according to DataQuick Information Systems.
Also, IDAs that receive federal funding can only be provided to those with very low incomes. The income cap is $20,000 for an individual and $40,000 for a family of four at the time of enrollment. Most Bay Area nonprofits that offer IDAs receive federal funding, so the income restrictions apply here.
But the article goes on to suggest other ways to make that down payment happen, including pooling IDA funds with family members, and pursuing low-interest loan programs.
It's an interesting read. Have a look.
2 comments:
Hello! I just wanted to comment on this article as a WI graduate who was interviewed for the article. I agreed to be interviewed for the article as I am hoping it will give women hope that it IS possible to buy a house in the Bay Area. I am a Bay Area local who has always dreamt of buying a house here; however, as an adult, I’ve been discouraged by what seems to be an impenetrable real estate market. It wasn’t possible for me to buy a home with an IDA alone, but there are SO many other programs out there that can be combined with an IDA. I encourage all women to inquire about affordable housing programs and their eligibility requirements—you’ll be surprised at how much is available. I received approximately $125,000 in program funds to supplement the loan amount I qualified for, resulting in my ability to purchase a $355,000 two-bedroom Craftsman bungalow in Oakland’s Fruitvale District! I selected homeownership over business ownership and education because I had to choose one of these three categories to spend my IDA money on, but that doesn’t mean I’ve neglected my goals in the categories I didn’t choose. It means I can now pursue those goals while enjoying the benefits of homeownership!
Original Post by: Ana Smith | July 26, 2007 at 01:58 PM
Ana,
thanks so much for your perspective! If you'd like to write up your experience with IDAs to help out other clients, I'd love to post it on the blog. This goes for any other WI graduates as well! Please contact me at clight *at* womensinitiative *dot* org.
Original Post by: claire | August 28, 2007 at 09:33 AM
Post a Comment