Affordable homes in San Francisco foreclosure listings are being offered to lower-income families through the combined home loan programs of the Federal Home Loan Bank of San Francisco and the Federal Housing Administration.
According to Marietta Nunez, community lending vice president for FHLBank San Francisco, the Individual Development and Empowerment Account and Workforce Initiative Subsidy for Homeownership programs of the bank can be combined with the Streamlined 203(k) rehab program of FHA to help lower-income families move from renting to home ownership.
The IDEA and WISH grant programs of the bank provide grants to qualified low-income or moderate-income families to help them pay their closing costs and make their down payments. The bank provides up to $15,000 in grants, granting $3 to match every dollar saved by the qualified buyer for the acquisition of a home.
Among qualified families are those that have FHLBank individual development accounts, which are designed for home ownership, and those who are members of the Family Self-Sufficiency homeownership initiative of the local housing authority in San Francisco.
Meanwhile, the FHA Streamlined initiative provides up to $35,000 for the repair of a home purchased from San Francisco foreclosure listings and listings of older residential properties. The Streamlined program is a simplified version of the standard 203(k) program because it combines financing for the purchase and repair of homes into only one mortgage loan.
Nunez said that the combination of the bank’s closing and down payment assistance initiatives with the FHA home purchase and rehabilitation initiatives is a potent combination to prevent the destabilizing impacts of foreclosure properties on neighborhoods. She added that the combined programs have been helping nonprofits and housing agencies acquire bank-owned foreclosures and older properties and turn them into affordable housing units.
According to San Francisco FHL Bank, it has already provided $10 million in IDEA and WISH grants to nonprofits and housing agencies to help qualified families buy their first homes.
Meanwhile, based on data from a real estate research company, nearly 33 percent of all previously owned houses sold in September were foreclosures that have been repossessed by lenders within 12 months prior to the sale.
Additionally, more than 25 percent of all home loan purchases in San Francisco in September were financed through FHA loans, an increase from the 24.9 percent level in August.
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- Fannie Mae Announces New Steps in Response to Increasing Foreclosures
- Fed Money to Buy and Gear up Repossessed Houses for Sale
- Homeowners Affected by Bank Foreclosure List Problems to Receive Help
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