The American Dream in Southern California: Is it Still Attainable for Prospective Homebuyers?

The American Dream of owning a home in Southern California may seem out of reach for many prospective buyers, but there are still options available to make it a reality. A recent study from Bankrate has shown that Southern California is one of the worst places for first-time homebuyers, with soaring home prices and stagnant wages making it difficult to save for a down payment.

However, there is hope on the horizon for those looking to purchase their first home in the Golden State. California recently launched a new program called “Dream For All,” where the state will pay 20% of the down payment in exchange for 20% equity in the home. This program is aimed at opening doors for potential buyers, especially first-time homebuyers, with income limits as high as $180,000 in L.A. County and $235,000 in Orange County.

Mortgage banker Larry Davis of Prime Lending reassures prospective buyers that it is still possible to buy a home in Southern California, with various first-time homebuyer programs available that waive the down payment requirement. Additionally, the California Housing Finance Agency offers assistance of up to 3.5% of the down payment for qualifying applicants.

Experts advise prospective homebuyers to speak with a lender first, get pre-approved for a loan, and determine how much they can afford in order to navigate the competitive housing market in Southern California. Despite the challenges, the dream of homeownership is still within reach for those willing to explore their options and take advantage of available programs.