California renters qualify for homeownership but lack financial knowledge to purchase, according to the California Association of Realtors research findings.
While low affordability is the largest obstacle most renters face in becoming homeowners, 14% of California renters can afford to purchase a home but are foregoing homeownership partly because they don't have the financial knowledge to do so.
Of the 6 million California renters statewide, 826,000 could qualify to purchase a median priced home in the county which they reside.
A lack of financial literacy is one of the biggest barriers preventing renters from becoming homewowners.
73% of renters believe they need at least 20% down payment to buy a home. 72% are unaware of loan programs that require less than 20% down payment. 69% would purchase a home if they could put down a lower down payment.
FHA has a loan, that only requires 3.5% down payment!
The top 4 counties with the most potential buyers:
Los Angeles, San Bernardino, San Diego & Sacramento.
The average rent for a standard 3-bed, 2-bath home in Paso Robles,CA 93446 runs around $2,200.
To purchase that same home for $450,000 with a FHA 3.5% down payment at 4.5% 30 year fixed loan.
Down payment $15,750 plus closing cost of approximately $12,000 total $27,750.
Monthly payment $3,146 PITI.
Alot of times buyers negotiate to have the sellers assist with the payment of closing costs.
Pre-qualification for loans is free!
Renters interested in buying a home, contact me and I will have a lender get you prequalified for a low down payment, low interest loan and you can achieve the "American Dream" of owning your own Home!