FIRST HOME BUY GETS EASIER NOW RENTERS CAN GET RATE BREAK ON COSTLIER PROPERTIES.

Byline: Gregory J. Wilcox Staff Writer

More home shoppers in California's pricey real estate market can become homeowners after an increase Wednesday in the price limits set by a state program that aids first-time buyers.

New price caps, being implemented in 56 of the state's 58 counties by the California Housing Finance Agency, or CalHFA, are the highest allowable under federal law, agency officials said.

This additional financial wiggle room could be an important tool for anyone trying to crack California's expensive housing market for the first time.

``We're thrilled to be able to increase the advantages for many first-time homebuyers in our state with our revised sales limits,'' California Housing Finance Agency Executive Director Theresa A. Parker said in a printed statement.

``Homeownership continues to be one of the most solid and durable investments a California family can make.''

There are four price points, including one for new housing in areas the agency labels targeted and one for new housing in nontargeted areas. Similarly, there are targeted and nontargeted areas for resale properties. The targeted areas are considered economically distressed.

``We want to broaden the pool so that more people will purchase homes in those areas,'' agency spokeswoman Evan Gerberding said about the higher limits in economically distressed areas.

The new limits in the Los Angeles area are:

--For new housing in Los Angeles County, the price limit is $482,912, up from $448,259, in nontargeted areas, while it is $590,226 in targeted areas, up from $547,873. For resale housing, the nontargeted limit is $416,106, up from $371,153, and the targeted limit is $508,754, up from $452,409.

--For new housing in Ventura County, the nontargeted limit is $542,857, up from $506,210, and the targeted limit is $663,491, up from $618,701. For resale housing, the nontargeted limit is $416,623, up from $363,410, and the targeted limit is $509,205, up from $444,168.

This is the second time this year the limits have been raised, reflecting the high cost of buying a home in most of California, Gerberding said.

Created in 1975 as the state's affordable-housing bank, the agency has helped more than 130,000 families buy their first home. It administers 15 programs and offers mortgage rates lower than the current market interest rate.

Mortgage-backed bonds fund the program.

The agency, which does not lend money directly but works with about 600 lenders across the state, is trying to increase its profile so more buyers take advantage of the programs.

Income limits vary from county to county, but applicants do not have to have squeaky clean credit.

``I'm told that mostly your credit is looked at over the last two years, not the last 10,'' Gerberding said.

Jim Link, executive vice president of the Van Nuys-based Southland Regional Association of Realtors, said the agency would be a good first stop for every would-be buyer of a first home.

``CalHFA is probably one of the best deals going, ... (with) the least-publicized programs out there, and it's something that buyers should look at,'' Link said.