It’s rough out there for a first-time homebuyer. Nowhere is it rougher than California, where the home prices give new meaning to the Golden State nickname.
In some parts of the state, like the San Jose area, a measly 3% of home loans are FHA loans, according to a recent analysis by home finance site This First House. Federal Housing Administration (or FHA) loans are backed by the federal government and are especially popular choices for first-time buyers. They typically have more lenient requirements than other types of home loans, so they can help more moderate-income families enter the housing market.
In Fresno, FHA loans account for over 30% of home loans, a number that puts it against the rest of the state. In most California cities, an income in the high six figures is needed to buy a home, even with the help of an FHA loan.
What it takes to buy a home for the first time in cities around California
The data above, collected from the Home Mortgage Disclosure Act and the Consumer Financial Protection Bureau, only reflects first-time homeowners going through the FHA home loan process. It doesn’t include people who are able to buy a home for the first time thanks to private financing or a large sum of cash…