Top 5 Reasons It’s a Good Time for First-Time Homebuyers


Top 5 reasons it's a good time for first-time homebuyers. 2022 has been a tough year for the housing market. I've put together top 5 reasons why I think now is a good time for first-time homebuyers.

Graphic for Top 5 Reasons It's a good time for first-time homebuyers

by Greg Stidham, REALTOR®

Sure, mortgage interest rates have gone up 3 points in 3 months, but if your a first-time homebuyer in California, I have put together the top 5 reasons now could be a great time to buy and not wait.

1) CalHFA has lowered the DTI to 50%

The Debt to Income ratio (DTI) for a CalHFA Forgivable Equity Builder Loan has been updated and improved from 45% to 50% if you have a good credit score of 700 or above.

2) Listing prices are adjusting to current rates.

Sellers are doing price improvements.

Prices are adjusting to current rates.

Price Reductions.

Yes, affordability has taken a hit recently as mortgage rates increased. Higher mortgage rates mean less buying power but it could also be a path for lower prices overall because if more buyers can’t afford homes they need at current prices, less homes will be sold and prices will come down. It could take time, but I believe it could happen.

Also, long term cost of ownership will be reduced for buyers because if the sold price is lower, you pay less in property taxes. Who doesn’t like lower property taxes?

3) Sellers are willing to give a credit for closing costs.

Some sellers are willing to credit buyers for closing costs. This includes a possible buydown of points.

What was old (1996) – is new again. Nice!

This means you might be able to get a good deal on the price of the house and possibly have a good mortgage rate with a payment that works within your budget.

Loan volume has also slowed down so lenders are working hard at finding creative ways to get first-time buyers into homes. The seller credit used to buydown points is one of several options.

4) CalHFA Forgivable Equity Builder Loan income limits have increased

Yes! The 80% AMI income for your area has gone up for 2022. In my areas of Yolo, Solano, and Sacramento Counties, the new income limits to qualify for CalHFA first-time homebuyer loans are $81,920 (Yolo & Sacramento Co.) and $86,960 (Solano). I used the Fannie Mae lookup tool here.

Read my original blog post for the 2021 income limits and the Forgivable Equity Builder Loan here.

Yep, I wrote that post only three months ago. (May 6)

It’s possible you may qualify now and didn’t three months ago. Very cool!

5) You’re paying a mortgage whether you rent or own

The hard truth of why first-time homebuyers should consider buying a home soon if they qualify is –

You’re paying a mortgage whether you rent or own. You can either pay YOUR mortgage for YOUR home or you can pay the landlords mortgage for the rental.

It’s time to talk to a real estate professional.

I’ve met many first-time homebuyers, who were nervous about reaching out to a real estate agent and starting a conversation about home ownership. First-time homebuyers often don’t think they have a chance in the current housing market. Well, times, they are a changing and the housing market is correcting.

You should consider reaching out to an agent soon.

Reach out to me if you want. I love taking to first-time homebuyers. I could possibly help you find an agent in your area that also loves working with first-time homebuyers.

Of course, if you are moving to or live in the Sacramento, Solano, and Yolo county areas of California, definitely contact me and we can start a conversation that might lead to you owning a home.

Thank you for taking time to read this blog post. My goal is to help make the home buying and selling process as stress free as possible. If you are in the Northern California communities of Davis and Woodland or the greater Sacramento area, please contact me. You deserve to work with a real estate agent that cares about you and is looking out for your interests.