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Rick Pelleriti, Executive Director
The California Home Buyers Assistance Foundation was founded in 2006 in Santa Clara County simply to help the average person save money when buying a home. With rising home values and an average home price exceeding $700,000, it is becoming increasingly difficult for an individual or a family to afford a home in Santa Clara County, or for that matter, in most counties in California. The Foundation accomplishes this by educating the buyer on how to get a home loan that is typically .5% below normal rates. This is known as the wholesale rate, and will allow the home buyer to save approximately $250 per month, or $3,000 per year, every year, for the life of the loan. (See footnote 1 for how these numbers are derived.)
There is no net cost to the homebuyer for this, and this program is open to all home buyers in California, regardless of income levels or geographical location. In other words, home buyers in Santa Clara County who make a six figure income can take advantage of this program.
How does it work?
It works by enabling the home buyer to leverage the cooperation between participating realtors and mortgage brokers, who both agree upfront to reduce their normal commissions, thus allowing the home buyer to get a “wholesale rate loan.” This wholesale rate, which is typically one-half point below the market rate, allows the buyer to enjoy significant savings over the entire life of the loan. In addition, because the interest rate is reduced, it also allows the buyer to more easily qualify for a home that they couldn’t qualify for, or just to afford a more expensive home if that is their choice. These benefits to the home buyer are real, and are available only because of the participation of select realtors and mortgage brokers.
As the Founder and Executive Director of the Foundation, I created this Foundation because I saw how this technique can really benefit the home buyer. There are plenty of commissions to be earned by the realtor and the mortgage broker in a home purchase, so by simply agreeing to work together and reduce their commissions, they can pass these savings directly to the buyer in the form of a below market rate loan. Everybody wins.
For more information on how to take advantage of this program, contact:
Rick Pelleriti
Founder and Executive Director
California Home Buyers Assistance Foundation
1999 South Bascom Avenue - Suite 700
Campbell, CA 95008
408-879-2330 (Direct)
408-672-1980 (Cell)
408-879-6230 (Fax)
e-mail: rick@chbafoundation.org.
- An average loan amount for the buyer of a home in Santa Clara County is $600,000. A savings of one-half percent is $3,000 per year, or $250 per month.