Housing Trust Fund’s New Program to Expand Homeownership Opportunities
It’s no secret, housing costs in the Santa Barbara County area are quite high compared to some of our neighboring regions. One of the biggest concerns is that of employees in the workforce, not being able to purchase a home where they work, which is creating long commutes for some families. Businesses in the area want their employees to be able to settle down in the same area they work as well as keep our community thriving and growing.
Well, on September 27th the Santa Barbara Housing Trust Fund, a local non-profit Community Development Financial Institution whose goal is to be able to provide affordable rental and housing for all in our community, announced the start of their $2.5 million South Coast Workforce Homebuyer Program. This program’s mission is to provide qualified workers and their families to purchase entry-level homes in our community with a low cost loan of 16.5% of the home’s purchase price, or a maximum loan of $100,000.
The Housing Trust Fund loan is going to make homeownership opportunities more accessible and affordable for our local workers and their families. The homebuyer will need to provide 3.5% of the home’s purchase price, plus the 16.5% that the loan provides, makes a 20% down payment accessible to the homebuyer which allows them to avoid high expensive FHA insurance as well as keep them from being in a financial bind.
Now, middle-income as well as low-to-moderate income homebuyers, will be able to afford homes in the Santa Barbara community. The Housing Trust Fund was able to fund the program with capital provided by several local banks, including: American Riviera Bank, Community West Bank, Montecito Bank & Trust, and Rabobank.This is an exciting time for our community, and The Housing Trust Fund is thrilled that they can serve everyone within our local workforce.