PRICES KEEP RISING OUTLOOK GRIM FOR POTENTIAL HOMEBUYERS.

Byline: Andrea Cavanaugh Staff Writer

Kellie Gross wants to buy a house so much, she's willing to go back to school.

The 33-year-old Thousand Oaks resident was an eager student recently at the School of Homebuying, a half-day seminar put on by the Ventura County Area Housing Authority to help prospective buyers navigate the intricacies of purchasing their first home.

``I'd like to stay in this area, but the prices are crazy,'' said Gross, a special-education teacher in Simi Valley. ``I'm here to see what steps I need to take.''

Gross faces the same dilemma that has stymied many middle-income professionals in Ventura County - home prices have far outstripped income levels, leaving many unable to qualify for loans.

``There are a lot of teachers, firefighters, police officers in the same boat,'' she said. ``Something's got to give.''

Dan Bonfiglio, a real-estate broker who teaches the School of Homebuying, maintains an upbeat attitude for the prospective buyers, but realizes that for some, the outlook is grim.

``The prospects are about as bright as a 15-watt light bulb,'' he said. ``Not everybody's going to be able to qualify.''

In Simi Valley, city-sponsored programs to help first-time homebuyers get loans can't keep pace with skyrocketing prices, said Dulce Conde- Sierra, the city's deputy director of housing.

Six months ago, the city successfully lobbied the U.S. Department of Housing and Urban Development, which backs the loans, to increase the maximum purchase price for lower-income buyers from $261,609 to $326,800, Conde-Sierra said.

That still doesn't pack much of a punch in a market where the median home price has shot to $429,000 and continues to climb.

City housing officials are applying to raise the maximum cost again, but fear that prices will zoom past the limit before it is approved, Conde-Sierra said.

``By the time it gets here, we'll be behind the eight ball again,'' she said. ``It's very frustrating.''

Last week, the city also doubled its subsidies, in the form of deferred loans, to first-time, low-income homebuyers from $40,000 to $100,000.

Moorpark abandoned plans to offer loan or down-payment assistance to low- and moderate-income buyers when home prices began to soar, said Nancy Burns, a senior management analyst with the city.

``The concern that we had was it would have to be such substantial assistance to make it work that we didn't complete our plan,'' she said.

Instead, Moorpark has joined many cities in requiring developers to earmark a certain percentage of housing units for low- and moderate-income families, Burns said. Several such developments are under construction, she said.

But even with such plans in place, there is such a shortage of affordable housing that available units have throngs of applicants, said Margaret Yun, director of supportive services for Many Mansions, a Thousand Oaks-based nonprofit housing agency.

When 12 town houses priced for low- or moderate-income buyers recently became available in Newbury Park, 150 buyers applied, Yun said.

``People want to move up from rental housing, but there's not the availability or affordability,'' she said.

The city of Thousand Oaks offers low-interest loans to provide down payments for low- and moderate-income buyers. A family of four can qualify for a down-payment loan of up to $20,000 with a household income as high as $89,650.

But the loan doesn't stretch far when many lenders require a down payment equal to 20 percent of the home's purchase price.

Housing officials will approach the City Council within the next few months to increase the limit, said Russ Watson, housing and redevelopment manager.

Gross hopes to qualify for the Thousand Oaks program and take advantage of any other assistance programs available. Despite the challenges, she is confident she will soon move into her own home.

``I think there's hope,'' she said. ``I wouldn't be here if I didn't think there was hope.''

Andrea Cavanaugh, [phone]

andrea.cavanaugh(at)dailynews.com