Report: More first-time buyers can afford a home

<p>Falling home prices in Sonoma County are making it easier for first-time buyers to afford a house, according to a study issued Tuesday.</p><p>The study, by the California Association of Realtors, found that 36 percent of the households in Sonoma County could afford an entry-level home in the fourth quarter, up from 25 percent a year ago.</p><p>The trade group calculates affordability based on the minimum household income required to make a 10 percent down payment on an entry-level home and secure an adjustable rate loan at 6.21 percent.</p><p>Sonoma County buyers needed to earn $84,900 to afford a $424,050 house, the price the trade association estimated for an entry-level home in the county during the quarter. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price, according to the group.</p><p>The monthly mortgage payment would be $2,830, including taxes and insurance.</p><p>Statewide, 33 percent of the households earned enough money to buy an entry-level home in the fourth quarter, up from 25 percent a year ago.</p>