(NewsNation) — A California coastal city is looking to give $25,000 to eligible first-time homebuyers to put toward the purchase of their home.
Long Beach’s First-Time Homebuyer Assistance Program is designed to “assist low- and moderate-income families traditionally underrepresented in homeownership with purchasing their first home and building multi-generational wealth,” officials said.
The grant can be applied toward the purchase of a single-family home, townhome or condo
located anywhere in Long Beach. Mobile homes and multi-family homes are not eligible.
The grant will be awarded to around 100 households. The money can only be used toward a down payment, non-recurring closing costs — such as loan, title, and escrow fees — or loan points or fees to buy down their mortgage interest rates.
City officials will review applications on a first-come, first-served basis, and issue a notice of Program Qualification to applicants that meet the eligibility requirements.
“Homeownership is a significant milestone and lifelong dream for many individuals and families and Long Beach is committed to making this more attainable for as many people as possible,” said Long Beach Mayor Rex Richardson. “This important program offers an incredible opportunity, empowering first-time homebuyers to invest in their future and plant roots in our great city.”
Applications for the grant program can be found on the program’s website. More information on the program can be found here.
Housing affordability hit a historic low in August with mortgage rates near their highest levels in two decades and a limited supply of existing homes.
California home sales reached their lowest level in 16 years, according to the latest report from the California Association of Realtors.
Other cities across the U.S. are also offering incentives for first-time homebuyers.
A new program in Chattanooga, Tennessee, is offering grants and zero-interest loans to eligible first-time homebuyers earning at or below the median area income, according to the Chattanooga Times Free Press. The applicants would be able to use the funds toward the purchase of a house.
In Wilmington, Delaware, income-eligible residents can receive up to $15,000 to put toward the purchase of a new home. The city’s mayor announced the $2 million New Homebuyer Assistance Program in November, the Delaware Online reported.
After reaching 8% in October, the average long-term U.S. mortgage rate has dropped below 7% in recent weeks. That’s promising news for would-be homebuyers, but it’s not clear how that will impact other factors that have contributed to a perfect storm over the past year.
Housing has become so unaffordable that a buyer now needs to make roughly $115,000 a year to afford a typical U.S. home, according to Redfin. In 2022, the median U.S. household brought in $74,580 — 2.3% less than the year prior and just 65% of what’s needed to buy a home.
NewsNation affiliate KTLA contributed to this report.
