Several state programs available for school employees are making it easier for teachers to buy homes in pricey urban California regions such as the East Bay area and suburbs of cities like Los Angeles and San Diego. Local grants, as well as raises that surpass cost of living increases for teachers in certain districts, are also supporting homeownership for teachers.
For investors, this represents an A+ market of prospective homeowners ready to buy and with the funds to do so. We did the homework on programs available for school employees and first-time homebuyers—and the benefits to investors—so you can use the knowledge to rise to the top of the class.
Study the Programs So You Can Help Your Buyers
The CalFHA program provides mortgages for first-time homebuyers, as well as junior loans, available for up to 4 percent of the home’s purchase price, to help with closing costs and the down payment. Teachers may also qualify for the Extra Credit Teacher Home Purchase Program (EXTP), which offers eligible applicants a deferred junior loan between $7,500 to $15,000 to help as well.
Knowing about available programs can potentially help you find a buyer for a fix and flip property faster. It could be as simple as noting, “Mortgage Assistance May Be Available” on an ad, and then pointing homebuyers in the right direction to learn about the programs CalFHA offers.
If you are placing Facebook ads or boosting social media posts to sell properties, you can target educators in a specific area code, so your ads will show up in the feeds of California residents who may be able to afford a home with such mortgage assistance.
Properties Near Schools: A Smart Choice
In a state where average housing costs far exceed median salaries, only 26 percent of Californians can afford to buy a single-family home. The number drops to 18 percent in the Bay Area. This opens the market to investors with access to fast funding for SFRs or re-sale properties. Bonus: Properties near schools are always a good investment—more so if you can appeal to teachers in the area, give them guidance to attain a mortgage, and flip the home quickly.
Make the Grade by Converting Your SFR to a Sale
As an investor, you may have reasons to offload an SFR or two in California. With California housing prices continuing to rise and inventory down, no one is sure what the 2019 market will bring. You can cash out now to take advantage of new investments. Educating renters about home assistance programs could help you sell your SFR to existing tenants, eliminating the hassles of listing and showing the home or getting current tenants to leave after closing. Selling your SFR to a tenant can be a seamless transition that can save you time and money.
Knowledge Is Power for Investors
Investors who are knowledgeable about first-time homebuyer programs in their state can offer something their competitors can’t—guidance and encouragement for first-time homebuyers. Building these relationships with prospective buyers can lead to faster home sales, word-of-mouth referrals, and business growth.
Get Smart About Funding: Borrow Better today!