Home loans attracts few in Calistoga

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Prices cool effort to help first-time buyers

Monday, September 28, 2009

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By JESSE DUARTE
For the Register

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The city of Calistoga launched an assistance program for first-time homebuyers in July, but so far there have been few takers.

According to Senior Planner Ken MacNab, about a dozen people picked up applications when the program was announced. But most of the applications haven’t been returned.

“We’ve received one application that’s just about completed and ready to be funded,” said MacNab. “We’re anticipating a second application to be submitted very shortly.”

The program offers first-time homebuyers low-interest loans of up to $15,000 to assist with down payments. Combined with an $8,000 federal tax credit, homebuyers could have up to $23,000 to put toward a down payment.

The federal tax credit is only available to first-time homebuyers who close escrow on or before Nov. 30, so time is running out. Congress may extend the deadline for the $8,000 tax break, but there is little indication when or whether such a proposal would pass.

The city allocated $150,000 toward its program — enough to grant up to 10 loans.

The loans are open to first-time homebuyers who live or work within the Calistoga city limits and who meet income requirements.

Only a handful of houses in Calistoga have sale prices that make them eligible for the program, which explains the low interest, said MacNab.

Homebuyers must pay at least 2 percent of the purchase price of the home as their share of the down payment. The maximum loan amount offered by the city is $15,000 or 4 percent of the purchase price, whichever is less.

For more information about the program, call MacNab at 942-2827.

4 comment(s)

Cadence wrote on Sep 28, 2009 6:43 AM:

" How odd. I guess none of the Unidas Latinos group lives in Calistoga? And none of the young professionals clamoring for Napa housing want to live in charming Calistoga? "

larrysbird wrote on Sep 28, 2009 7:25 AM:

" Just wondering- when the recession ends and I find a job again, are the prices going to skyrocket back up? Are the breaks for first time home buyers going to be there? "

napablogger wrote on Sep 28, 2009 1:11 PM:

" Cadence, what this means is that despite the huge price drops, people still can't afford housing here. That is why we need affordable housing. "

Byoung wrote on Sep 28, 2009 3:10 PM:

" Theres 2 huge problems with trying to do this in calistoga... one is there is no work in calistoga, you usually have to take the 30 min drive to either napa or santa rosa or somewhere even farther. The other problem is first time home buyers are usually young people. Almost no young person would want to live in a boring sleepy town like that. That town is more suited to older folks who want somewhere that never really changes and is always quiet. In the eyes of a young person.. you mus be out of your mind to want to invest in a home there... "

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