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Housing Constraints Draft Housing Element 3-7 incompleteness. A substantially lower number of households (486) applied to use government- backed loans to purchase homes in San Leandro. The approval rate of these loans was 70 percent, 7 percent lower than the approval rate of conventional loans, with approximately the same percentage being denied. Additionally, 220 San Leandro households applied for home improvement loans in 2017. Approximately 73 percent of these applications were approved, and 14 percent were denied. Applications to refinance existing mortgages totaled 2,161 applications. Table 3.1 Disposition of Loan Applications in 2017 Applications Total Approved Denied Other By Loan Type Conventional 3,087 77% 10% 13% Government Backed 486 70% 11% 19% Home Improvement 220 73% 14% 14% Refinancing 2,161 71% 12% 17% Notes: “Approved” includes loans approved by the lenders regardless of acceptance by the applicants. “Other” includes loan applications that were either withdrawn or closed for incomplete information. Source: LendingPatternsTM, HMDA data, 2017. Alameda County averages for loan approval and denial were similar to averages for San Leandro. Conventional approval of loans for the county was at 76 percent, while 10 percent were denied. Alameda County had a slightly higher denial of government backed, home improvement, and refinancing of loans at 14 percent, 15 percent, and 12 percent. The average rate of approval was 88 percent in California and 86 percent nationwide.13 Given the high approval rates, refinancing and home purchase loans are generally available and overall, not considered to be a major constraint in San Leandro. However, as discussed in the AFFH analysis provided in Chapter 5, Black/African American, Hispanic/Latino, and American Indian/Alaska Native residents were underrepresented for mortgage applications and had higher denial rates for mortgage loans than Asian American and non-Hispanic white residents. As described in Chapter 6, Housing Plan, the City contracts with Bay Area Affordable Homeownership Alliance (BAAHA) to administer first-time homebuyer seminars, homebuyer education and counseling, and below market rate ownership units under the Inclusionary Housing Program. The City provides educational seminars on housing resources and financial planning to increase housing mobility in neighborhoods with higher concentrations of low-income and minority residents. Federal Housing Administration (FHA) Loans The FHA loan program was designed to make it easier for first-time homebuyers to get financing and afford a home. FHA loans are only allowed on one to four living-unit properties. These properties can be purchased with an FHA loan if the owner occupies one of the units. Alameda County qualifies as a high-cost area and has a higher loan limit than the national average through FHA loan program. In 2022, prospective home buyers could receive a loan of up to $970,800 for a single-family home and $1,867,275 for a four-plex through an FHA loan.14 13 Lending Tree. “Nearly 86% of Mortgage Refinances Are Approved, and These States Have the Highest (and Lowest) Approval Rates.” https://www.lendingtree.com/home/refinance/highest-lowest-refinance-approval-rates-study/. Accessed: November 23, 2021. 14 FHAloans.guide. 2022. Alameda County, CA 2022 FHA Loan Limits. https://fhaloans.guide/loan-limits/california/alameda-county