Homebuyer enthusiasm explodes in 2024

Jim Porter

Solano Real Estate Scene: Jim Porter

Article By: Jim Porter – February 2, 2024

The Dream for All announcement is certainly one reason the phone is ringing off the hook for us and the other approved CALHFA lenders in California, but there are many other reasons things are looking up after a depressing year for mortgage lenders.

Homebuyers are excited today about the yield on the 10-year treasury below 4%, down from 5% in November, and the national average for mortgage rates down well below 7% after reaching 8% for a few minutes around Thanksgiving.

Last week, a CALHFA representative suggested they expect somewhere around 20,000 pre-approved first-time and first-generation homebuyers to register for the lottery by April 1 for the estimated 2,000 Dream for All down payments.

If this number turns out to be accurate, 18,000 buyers will either return to renting or decide they are sick and tired of paying their landlord’s mortgage payment and use the regular CALHFA down payment assistance program which is flush with cash and available today for all first-time homebuyers, not just first generation, with household income up to $222,000 per year.

Here is an idea that is rarely talked about up here in Solano County, and something done more often in places like San Francisco, Los Angeles and Silicon Valley. My team has numerous single men and women that can qualify and afford to buy a house right now, up to a maximum sales price of $450,000 or a condo up to a max of $350,000 using the regular CALHFA down payment assistance program. Many of these people cannot find something they like for $450,000 because of the lack of inventory in this price range.

My suggestion is for two of these people to combine their resources and their excellent credit ratings and buy a house for $750,000 to $800,000, have an attorney draft an equity share and buyout agreement, and switch off who gets the owner’s bedroom once per year and then sell the house in six years and split the equity 50-50, or convert the home to a rental property when each person is ready to buy on their own.

My two kid brothers did this 32 years ago and it worked out OK with my one brother buying out the other after seven or eight years living together. The Odd Couple – Oscar and Felix – is an example of two single men that probably wouldn’t be the best match but think of the shows “Friends” or “Three’s Company” and buy a big, beautiful home with a swimming pool and just agree not to allow any skinny dipping.

Seriously, both parties must have perfect credit, good jobs and an equal amount of assets and liabilities. Best friends and family members can make great partners.

Jim Porter, NMLS No. 276412, is the branch manager of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.

Contact Us to Schedule a Mortgage Consultation

We’ll contact you with an evaluation.

100% Customer Satisfaction

Our goal is to provide 100% customer satisfaction. We do what it takes to keep our customers happy, to the best of our ability.