New program helps San Jose teachers who can’t afford homes here
SAN JOSE — Teachers here struggling with the high cost of housing got a break Thursday, with the launch of a new program designed to help them buy a home.
Landed, a San Francisco-based startup that assists local teachers with their down payments, has expanded its reach to San Jose — offering its services to about 10,000 educators in eight school districts. The move is good news for city’s teachers, who often find themselves unable to pull together enough cash for a typical 20 percent down payment on one of the area’s exorbitantly priced homes. Those high price tags raise the possibility that teachers will pack up and move to more affordable areas, leaving San Jose’s kids in the lurch.
“San Jose is one of the least affordable cities in the country,” Evergreen School District Superintendent Kathy Gomez wrote in a news release announcing the program’s launch. “Without creative solutions like Landed, our educators cannot envision a future in our community.”
Just 2 percent of homes for sale in San Jose were affordable to those making the city’s average teacher’s salary of $75,133 last April, according to real estate website Trulia. That’s based on a median home price in San Jose of $917,903.
Landed helps teachers buy homes by splitting their down payment — the teacher typically contributes a payment worth 10 percent of the home’s value, and Landed puts in another 10 percent. The money comes from Landed’s investors, who get their 10 percent back when the teacher sells the house, plus 25 percent of any appreciation in the home’s value. Launched in 2015, Landed has worked with teachers in several Bay Area cities, including Los Altos, Mountain View and Redwood City. The company’s co-founder, Stanford graduate Alex Lofton, hopes eventually to expand the program to include nurses and first …read more
Source:: The Mercury News – Business