Forgot to mention that FHA only REQUIRES 3.5% down. You can put more down if you'd like, but
a) it doesnt get you a better rate to put more down on FHA, and
b) from a personal finance standpoint, you dont want to put all of your cash down. If there is an emergency, you want to have cash, not equity. If you have reserves on top of the 10%, feel free to look at putting more down.
bottom line, work with someone who can ADVISE you, not just "get you a loan".
While I can certainly appreciate your want to own a home, Perhaps it would be wise to save a bit more and continue to work on raising your credit score. Any additional savings would be your cushion if something unexpected happened such as illness or the loss of a job. A larger downpayment could negate the need of PMI which would make your carry charges less.
I might think your desired living location would have depressed prices for some time to come and opportunity should abound. Of course this is just one opinion. I don't have a side to take and you can do what makes you happy. I just wanted to add my two cents worth here. Good luck with whatever you decide.
I hope this message finds you well, the minimal fico requirement is 620 fico. And since you have more than 24 months of credit history you may qualify with as little as 3.5% down with FHA financing.
Alfonso Delgadillo is the Mortgage Banker I use with all of my buyers, his number is 619-843-0627 with Prime Lending. If you would like to stop by our office we are located at the Chula Vista Mall in front of JC Penny.
There are also seller-specific loans available on the properties they;re selling, such as FNMA or the VA. No offense to brokers, but many sellers also want to see your pre-approval from a direct lender - it's just the market we're in. You can use a broker for the actual loan as long as you inform the seller in writing, and they agree to the change.
Of course, there are other factors lenders take into consideration besides your FICO score when applying for a loan, so the best suggestions have been to talk with a few lenders, and go with the one you're comfortable with, not the one that says everything you want to hear.
Mr V- Team. Please stop answering mortgage questions when you clearly don't know what you are talking about.
"You would be the best candidate for FHA program with 5% down no PMI. "
As I correctly sated, there is no such program. I am well aware of programs that do not require MI, but they are not FHA programs. If you are going to argue, you may want to get your facts straight.
Please stop answering questions that you are unqualified to answer.
When putting personal information on a website, make sure you can find:
1. A local phone number
2. An address
3. A company name or an individual's name
Also, the direct link to the official San Diego Housing Commission's first time home buyer programs/grants is:
Seth J. Oliver
A1 Capital Distributing
send email to email@example.com if interested.
FHA has programs that only require 3.5% down and your credit should be fine for their requirements. It is ultimately up to the lender to make the final decision.
I tell my clients that now is a good time to buy; both prices and rates are low, something I have not ever seen in all of my years in the business. However, you should be prepared to stay in your home for 5-10 years. This market is not one where you can expect to make a major gain in the value of your home in a short time.
I am a native of San Diego and would be happy to help you find a good home in an area that meets your needs. I also work with several lenders who can help you get pre-approved before you start to shop.
The San Diego Property Shop
CA DRE # 00648687
To avoid the same mistake and getting people in trouble that apply to purchase a home with little or no money down it is like leading the blind off the cliff.
While responsibility is left up to the borrower we realtors have an equal opportunity in that process.
SD Looking at a realistic five year forecast in our industry ,stabilization of values does give little encouragement or being likely in your favor for me as a broker to encourage you to buy with little or nothing down payment as values are still being eroded.
Unless you are prepared to accept those facts and go on the long haul and be prepared that values will be underwater you must think real hard to explain your motivation to stay with that property,
I am a hardliner the makes the following observation and suggestion for one that call himself a buyer. Unless you have at least 30% to put down stay away from the illusion of buying. You are worse off than you would be if you were renting.
So, you probably only need a 620 fico in most cases, and Permanent Residents are eligible with no issue as well...
Someone mentioned that it would be prudent to wait because prices are declining, but keep in mind rates for FHA are about 4.25% right now. I would advise you to go out, talk to a lender (obviously I would recommend myself) and get your feelers out there... You have a lot more buying power NOW at 4.25% than if you waited and rates went up to 5.25% next year.
Just a thought. Hope it helps! If you have any questions at all, please dont hesitate to drop me a line anytime. I am here to help!
Addressing your question of HUD/FHA and Fico scores - here is a good link to help you out.
Hope that helps and if so, click the like button.
The Property Patrol
I think by now you have been reassured that you are in a great position for a loan..congratulations. On another subject, I do know an excellent real estate agent in San Diego...would you like a referral for him?
CA DRE# 01867503
I would recommend that you speak to a lender to get the most up to date information. This link will give you contact information of lenders that I work with on a regular basis. http://www.yoursdps.info/3/W0000019741/P0000367194.htm . This site also has a good property search engine that you can use to help you find a home that is right for you.
Typically an FHA program is best for people with a smaller down payment however there are some FNMA programs that are available for their repossessions that could also be attractive to you. These may not require an appraisal or mortgage insurance. FNMA may pay some of your closing costs as well.
If I can help you find a home please contact me at you convenience and we can discuss your needs in more detail.
The San Diego Property Shop
CA DRE #00648687
"When a man has put a limit on what he will do, he has put a limit on what he can do" Charles Schwab
I just want to respond to Grigorio in regards to the comment about my "falls" response to the question- YES there is 5% Down programs with MI and many of my clients have went with it and had success. As far as I know lenders dont have much rebates in it and thats why done even like it. If you didnt know about that program and want more details please email me at anytime.
I just like to help my clients in getting the best financing for them and I think we as REALTORS have to be there for them for two reasons;
1. Providing as much options as possable and advise them
2. Making sure the lender is SOLID and transaction will get closed
For a person with over 700FICO and 3 years of good credit history there will be bunch of lenders lined up to get that business!
Based on what you are sharing an FHA loan program should not be a problem for you. Obtaining an approval, not just a pre-qualification is paramount and should be your first step. Therefore allow me to share this site with you ( http://www.e-approval.com ) which will offer you a full DU approval as well as a rate and cost quote. Furthermore if you are a first time buyer there is a Grant program available for some areas of San Diego for up to $15,000.00 that can be attributed to your closing costs should you fit the criteria and guidelines ( http://www.sdhg.org ).
Best wishes and feel free to call me should you have any questions.
Mortgage Services of America, INC.
There is not such program as "The V-Team" states.
Please contact a licensed, experienced loan officer to pre-qualify you. Direct lender or broker makes no difference. Shane who also answered this question is a direct lender and I'm with a broker and I believe either of us would serve you well. Whatever you do, make sure you get your mortgage information and advice from an actual loan officer.
When you ready if your looking for a home in the Mira Mesa area...feel free to contact me for further information.
You would be the best candidate for FHA program with 5% down no PMI. Unless you have some situation that you didn't discribe you should have no problem qualifying for FHA or CONV loans. If you need couple good referals for direct lenders please contact me. Have you found a good realtor yet? Can I apply for that position and make your life easier on financing side too?
I am available on weekends and late nights too!