Financing in 95134>Question Details

Melissa, Home Buyer in Boston, MA

Down Payment Assistance: Limits?

Asked by Melissa, Boston, MA Sat Jul 26, 2008

The City of San Jose offers a first time homebuyer program for teachers, up to $65k. CalHFA offers several second loan programs, and the County offers some as well. I cannot find any information as to whether or not there is a limit on how much you can borrow altogether (as a percentage) for a down payment. Can anyone answer this question? There is a lot of information on which programs can be combined with which, but that is all I have found. I have been looking at the so-called "affordable" programs, and the condos start in the mid to upper $400s. On a teacher's income, without major down payment assistance, that is never going to happen. I will only have about $20-25k of my own money to use.

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Your issue with the various DAPs available is not so much the total amount "allowed", but the packaging of the various DAPs. For instance to use a CalHFA DAP you must use their first position loan or work with a lender that is approved by CalHFA and then look at that lender's requirements on combining the other DAP programs. If you would like, we can do the leg work for you. You can reach us at billb@themortgagementors.com

Good luck!
0 votes Thank Flag Link Wed Jul 30, 2008
Hi Melissa,
Bob is right about the FHA programs - you can get in with as little as 3% down. Other programs can change as Congress is evaluating the housing situation. But I don't think the teachers program will go away. I will send you my best lenders so you can talk to them. Then, put your plan together, save your money, pay off debt, and position yourself for a successful return to Silicon Valley. This is a rare time for people. It has always been said that once you sell & leave The Valley, it is nearly impossible to afford to come back. You should be able to beat that reputation! Wow!
have a great day,
Linda Baker
Alain Pinel Realtors
408.712.3432
Web Reference: http://LindaBaker.net
0 votes Thank Flag Link Sun Jul 27, 2008
good afternoon...you may not need the money from the city for a second mortgage.request two concessions from the seller, and go straight fha...the seller can provide two concessions to drive down the dollars you need to close, so you can keep most all of your money in the bank.....concession number one- request (up to 6%) of the sales prices of the home towards your closing costs and pre-paids..they won't run quite that much...also, reqest a 3% concession for the "Ameridream Gift Charity" program..Ameridream wires the money in to the title company for the closing, and their fee is only $500....the 3% is charged against the buyers proceeds at closing.....if you would like to talk.call me anytime (248) 806-0366 Bob McClure- Mortgage Now- Farmington, Michigan.i am licensed in california...and would be willing to finance your new home....
0 votes Thank Flag Link Sat Jul 26, 2008
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