Financing in San Diego>Question Details

Sd New Casa…, Home Buyer in San Diego, CA

Has anyone requested/dealt with FHA loans for people with around 3 years of good credit history (FICO ~700)?

Asked by Sd New Casa Buyer, San Diego, CA Sat May 14, 2011

Im a new U.S. permanent resident card holder and in my mid 30's. I have between 5-10% of down payment.

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BEST ANSWER
Sorry,

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".

D
Web Reference: http://www.lehmangrp.com
0 votes Thank Flag Link Fri May 20, 2011
Hi SD buyer. I'm not a Mortgage consultant and not local to your area so my response may be a bit different. Owning a home is part of the Americam dream, no question. I truly believe home ownership is among the top desires of every person looking to improve their life and the lives of thier families.

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.
1 vote Thank Flag Link Sun May 22, 2011
Plenty of credit and a 700 score is high enough for an FHA loan. 3.50% down payment. Depending on the amount of money used for a down payment, the monthly mortgage insurance will be either, 1.10 (5% or more down) or 1.15 (less than 5% to 3.50% down). The upfront mortgage fee for FHA is 1% of the loan base loan amount - (sales price minus your down payment). Check out HUD.gov for further assistance. But there are many places to find info. If you need someone in SD, please drop me a line I know several top LO's in your area.

Jeff Thomas
1 vote Thank Flag Link Tue May 17, 2011
Hi Sd,
Wait another year to buy, prices are declining. Good Luck
1 vote Thank Flag Link Tue May 17, 2011
Hello Home Buyer,

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.

Saludos,

PM
1 vote Thank Flag Link Mon May 16, 2011
Gregorio is right, there is no such thing as an FHA loan with no PMI. You could put down 15% and there would still be PMI for five years. There are low down payment loans with no PMI, but be sure you get ALL the details.

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.
1 vote Thank Flag Link Mon May 16, 2011
"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. "

Mr V- Team. Please stop answering mortgage questions when you clearly don't know what you are talking about.

You said:
"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.

"
Web Reference: http://WeFixRates.Com
1 vote Thank Flag Link Sun May 15, 2011
Only comment about John's response is I recommend that no one, ever, EVER, puts their information on a website (particularly personal information about qualifying for a mortgage) that doesn't have their full address listed or company name. You have ZERO control over the individual who is receiving it, you don't know who they are, what company they work for, etc... they could be reselling your personal information to industry groups trying to solicit you for products, keeping it for their own personal use, or do whatever. Bottom line is, unless you know who the website you are going to belongs to, just don't put any information on it. I am primarily referring to the website http://www.e-approval.com/. Now I don't know who John Georges is, he could be the best person in the world, or he may not be, but that website is a red flag IMO.

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:
http://www.sdhc.net/Real-Estate/First-Time-Homebuyers/
1 vote Thank Flag Link Sun May 15, 2011
The person who can really answer your question correctly is going to be an FHA approved direct lender. Rules change and only the direct lender can tell you exactly what to do. We use a lender by the name of David Wright and you can email him for questions dwright@spfcnet.com, or contact a bank such as Wells Fargo or Bank of America.h
1 vote Thank Flag Link Sat May 14, 2011
Yes not a problem Call Andrea Files at Sunbelt lending she may be able to help if not she may be able to hook you up in San Diego!! 941-243-9914
0 votes Thank Flag Link Tue Oct 30, 2012
I am an Loan Agent out of North Carolina and get people personal loans for up to 2500. No credit check you must only have a job for at least 6 months have a checking account that is all.

Seth J. Oliver
A1 Capital Distributing
send email to soliver27@gmail.com if interested.
0 votes Thank Flag Link Tue Oct 30, 2012
Sd
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.


Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes Thank Flag Link Mon Oct 31, 2011
Daniel,

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.
0 votes Thank Flag Link Mon Oct 31, 2011
FHA will have no issue with that situation. FHA doesnt have a minimum credit score, HOWEVER, all lenders have "overlays" to that guideline.

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!

Daniel Lehman
760-230-0046
Web Reference: http://www.lehmangrp.com
0 votes Thank Flag Link Fri May 20, 2011
I noticed you are in California. You may want to check out some home buying help the State of California is offering. Here is the link:
http://www.ftb.ca.gov/individuals/new_home_credit.shtml?WT.m…

Addressing your question of HUD/FHA and Fico scores - here is a good link to help you out.
http://www.fha-home-loans.com/

Hope that helps and if so, click the like button.
The Property Patrol
http://thepropertypatrol.com/
0 votes Thank Flag Link Wed May 18, 2011
You sound perfect for the program as long as your debt to income ratio's fall into place I believe its 36% and you can also recieve a maximum of 3% seller contributions towards closing costs and pre-paids. If it would help I can connect you with an agent in your area familiar with FHA to help you with your home purchase!
0 votes Thank Flag Link Wed May 18, 2011
Yes, of course you are a great candidate for this program. You may still catch the latest 0.5% down payment assistance from the government if you use FHA, hurry while the money lasts. This Down payment assistance 3% of the price, is not a loan, it is a California grant. Call me.
Carmelita Tiongson
562-305-7995
0 votes Thank Flag Link Wed May 18, 2011
HI,

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?

Karen
0 votes Thank Flag Link Sun May 15, 2011
Yes, I have. The local lender here in Tucson, AZ is Nova Home Loans and have many buyers with lessor score than that get approved. Course, there is a lot more to it than that, debt to income ratios and etc. Still, call a local lender and see what they can do for you.
Spirit
0 votes Thank Flag Link Sun May 15, 2011
Based on the information provided you should be able to get the very best mortgage options (programs, rates, and fees) available. It sounds like credit is very solid and your permanent resident status is no problem.

Bill Provost
760-282-4415
NMLS# 101876
CA DRE# 01867503
0 votes Thank Flag Link Sun May 15, 2011
You can obtain full explanations of FHA Loan programs and advise from the Department of Housing and Urban Development (HUD) . From my websiet, under my external linkds, click on HUD - Home Buying Guide. Visit all of the articles of interest, develop your list of unanswered questions, then speak with an FHA representative to acquire additional detail. Happy trails to you and yours.
0 votes Thank Flag Link Sun May 15, 2011
Sd New Casa Buyer,
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.

Best wishes,
Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
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
0 votes Thank Flag Link Sun May 15, 2011
Sorry, I meant to say WITHOUT MI
0 votes Thank Flag Link Sun May 15, 2011
There is not such program as "The V-Team" states.

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!
0 votes Thank Flag Link Sun May 15, 2011
You could do many different types of loans. 95% Conventional, 97% conventional, 96.5% FHA, Also you could get a down payment assistance program in San Diego.

David Stein
Mortgage Banker
858-337-9744 Cell
davbstein@yahoo.com
0 votes Thank Flag Link Sun May 15, 2011
Hello,
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.

John Georges
Mortgage Services of America, INC.
http://john.msahomeloans.com
1-888-619-4858, ext.12
0 votes Thank Flag Link Sun May 15, 2011
"You would be the best candidate for FHA program with 5% down no PMI. "

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.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Sun May 15, 2011
From the information you have provided, if you also have a steady job with a good income you should have no problem.
When you ready if your looking for a home in the Mira Mesa area...feel free to contact me for further information.
Web Reference: http://sandysmith92126.com
0 votes Thank Flag Link Sun May 15, 2011
Hi

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!

Vadim agamirzoyan
619-962-1747
Web Reference: http://FreeSDhomelist.com
0 votes Thank Flag Link Sat May 14, 2011
Ask your Realtor to recommend a lender. He will need your approval to submit an offer. Also, be aware that time on the job and the amount of money you earned are important as well.
0 votes Thank Flag Link Sat May 14, 2011
A permanent resident alien is typically fine using any type of financing. It's non-permanent resident aliens who typically only have FHA financing as a mainstream financing option, but when you have a green card Fannie Mae & Freddie Mac conforming loan programs are also available.
0 votes Thank Flag Link Sat May 14, 2011
I see no problems.

Jacob Varghese
NMLS 327086
Web Reference: http://swanloans.com
0 votes Thank Flag Link Sat May 14, 2011
SD New Casa buyer, you should be fine using an FHA loan from what you have described so far...

Good luck.
0 votes Thank Flag Link Sat May 14, 2011
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