Home Equity Line of Credit
industry and caused six million potential homeowners to leave the housing market or become renters . The resulting impact on housing affordability and the overall housing market has been significant .
• Increased poverty : Nationwide , more than 19 million families are either homeless or paying more than half their income on housing , according to Enterprise Community Partners .
• Skyrocketing rents : In California , rent on a two-bedroom apartment rose 17 percent between 2005 and 2013 , while renter incomes increased by only 5 percent .
• Affordability nears record lows : After falling to a low of 29 percent in mid- 2008 then rising to 56 percent in 2012 as home prices plunged , C . A . R .’ s Housing Affordability Index has hovered below 40 percent for 12 consecutive quarters . In the second quarter of 2016 , 31 percent of California households had the income needed to purchase the median-priced existing , single-family detached home , which sold for $ 516,220 . Assuming a 20 percent down payment , a household needed an annual income of $ 101,217 to qualify .
• Loss of affordable rentals . The supply of affordable rental homes for seniors , disabled persons and others on fixed incomes is dwindling . In California , as many as 131,000 federally subsidized rental apartments are scheduled to be returned to market rates over the next two decades .
Moving Toward Solutions
For decades , REALTOR ® associations have joined other organizations in supporting affordable housing programs at the national , state and local level and acted to protect against laws or regulations that would make housing less affordable . In late April , the C . A . R . Board of Directors voted to back a state Assembly proposal that would redirect $ 1.3 billion in surplus funds to a variety of affordable housing programs . Among the highlights of the proposal are a new workforce housing grant program that will provide down payment assistance , personal income tax credits to help cover a portion of mandatory seismic retrofit costs , funds to finance the construction and rehabilitation of farmworker housing and emergency housing , and tax credits that will enable developers to build , renovate
and acquire some 8,700 affordable homes serving an estimated 62,500 families . “ Our teachers , nurses , firefighters , police officers and other middle class workers should be able to afford to live in the communities they serve ,” said C . A . R . President Pat Zicarelli . “ C . A . R . recognizes the urgency of California ’ s housing crisis and is fully supporting the proposal to invest a portion of our state ’ s budget surplus to address this housing crisis .” Analysts and housing leaders agree that meeting California ’ s workforce housing needs likely will take decades and require an army of advocates and a willingness to consider new and unique solutions at every level of the public , private and nonprofit communities . However , they wonder whether the “ political will ” exists to make these necessary changes . “ We knew that housing wasn ’ t getting enough respect before the crash , but after the housing markets took down the world economy , you would think that people would think that housing was pretty important , and we should pay attention to it ,” said Myers . “ But no , it doesn ’ t seem to be working that way . It ’ s baffling . I can ’ t explain it .”
Reimagine Your Space .
Home Equity Line of Credit
Introductory Rate
1.99 % APR *
Fixed for 12 months
4.00 as % low as
APR * thereafter
Take advantage of this great offer today ! Apply online at www . wealthcu . org
( 408 ) 663-5022 | www . wealthcu . org
* APR = Annual Percentage Rate . APR can vary and is based on Prime Rate plus a margin of 0.00 % to + 5.00 % based on credit rating . The APR is subject to change on the 10th of each month , based on changes to Prime Rate , the highest Prime Rate published in the Wall Street Journal “ Money Rates ” table on the 20th of the prior month . Minimum APR 4 %, maximum APR 18 %. Up to 80 % CLTV with loan amounts of $ 10,000 to $ 500,000 . 10-year draw period , 20-year repayment period . During the draw period , you may withdraw ( advance ) funds up to your credit line limit and pay interest accrued on that balance monthly . After the draw period , you may not withdraw any more funds from the line . Your loan is then amortized and you begin to pay the principal and interest monthly . There are no loan processing or early closure fees and no prepayment penalty . You may need to pay certain fees to third parties to open the loan . These fees generally total between $ 450 and $ 1,500 . If you ask we will provide you with an itemization of the fees you will have to pay to third parties . Rates , terms and conditions are effective as of publication date and are subject to change without notice . Loans are available for owner-occupied properties in the state of California only . On approved credit . CommonWealth Central Credit Union membership is required prior to loan funding , and is available to almost anyone . NMLS ID # 458544 . FEDERALLY INSURED BY NCUA
GILROY • MORGAN HILL • SAN MARTIN NOVEMBER / DECEMBER 2016 gmhtoday . com
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