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Today, we discuss whether you can purchase a home for less that 3.5% down.
Most people without much real estate experience think that they need to have 20% down in order to buy a home. This is a limiting belief that leads many to believe that they can't afford to purchase a home. In reality, the government offers a program that allows people to put only .5% down!
The program is called the CalHFA and it's really quite simple. It's for people who qualify for a home loan, but who don't have enough money for a large down payment. If you are able to show that you're in good financial standing, but for whatever reason don't have the cash on hand for a down payment, you might be eligible.
The credit score requirement for this kind of loan is around 645 FICO.If your score is less than that, we have a credit analyzer that will look at look at all your debts and determine which ones you can pay down. In other words, we would love help you get your score up in order to qualify for the loan.
Like any other purchase, there is a down payment requirement; in this case it's 3%. We help you with it, so all you're required to bring in is 0.5%. So, if you plan on buying a $300k home, you only have to bring $1,500 to the table. Be aware that you'll run into some additional fees in the form of closing costs, which could be as much as $6,000 on a $300k home. However, you may be able to negotiate to get the seller to pay for it or, if you have the savings for it, you can pay for it yourself.
The loan limits with the CalHFA are conforming up to $217,000. There are income limits as well, but as long as you don't make too much money,there is a good chance you are eligible if you don't go above the median home income for your household size. The wait period can usually get done within the normal 30-day period, but you can expect to be asked for a 35- to 40-day escrow period to work through any hiccups that might arise in the process.
Melvin Camarena is one of our preferred Lenders, and if you have any questions for him regarding the CalHFA, or about general lending information, you can reach him here -
Melvin Alexander Camarena
Ph: 510-432-3374
nmls# 306061
Hablo su idioma
My Website: http://61509.stearnshomeloans.
Stearns Lending, LLC
As always, if you have any questions or need real estate assistance of any kind, don't hesitate to reach out to us. We would love to hear from you!
