Just an FYI - It will save you time in the long run to find a credible lender or mortgage broker to assist you with these questions as your first step. They will help you get pre-qualified prior to your home search so that you know all the options up front. It is a much stricter lending environment than in the past and you don't want to waste your time looking at houses in the price range you think you are qualified for, to find out later that you are not.
Marcie Sands, REALTOR
Simply The Best Real Estate Company, Inc.
Congratulations on your fantastic FICO credit scores. They are truly something to be proud of!
The answer regarding the FHA-insured loans is right on the mark. With only 3.5% down payment associated with these loans, they offer you the best opportunity for a low/minimum down payment. Upon earning a little more information from you, we can discuss if this is truly the best route for you to take regarding your financing and financial future.
As a lender that can assist you within the State of California (and many other states across the U.S.), I would be very happy to answer any further questions you might have regarding a home purchase and mortgage lending, assist you with pre-qualification prior to contract, and financing for closing. My services on your behalf do not end at the closing table, but continue for your financial benefit through my mortgage planning services.
To learn more about my mortgage services, background, and abilities, please go to my website at: http://www.genemundt.com. Also, there is information contained within that site relating to the first-time homebuyer's tax credit and more. If this is your first home purchase (or you have not owned a home within the last three years), this information may be of particular interest to you and your wife.
I can be reached here at trulia,.com, my website, email (email@example.com), or my Direct Line: 815.277.4036, at your convenience. I look forward to hearing from you soon and earning the opportunity to work with you on your upcoming purchase.
Gene Mundt, Professional Mortgage Banker http://www.genemundt.com
Chicago Bancorp http://www.genemundtmortgageblog.com
I always appreciate all of the feedback from the different resources on Trulia. WIth that said, the very best thing you can do is contact a national direct lender (B of A, Wells Fargo, CountryWide, etc.) and get the answers directly from a loan agent on their staff.
While many of us know this information, we feel it is best coming from where you will be getting a loan.
As for Real Estate, you will find many here who are knowledgable and will answer your questions and many who simply want to solicit your business.
Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate
FHA would be your best bet at 3.5% down. A conventional loan would most likely be 20% down. VA is 0% down if you qualify.
I have written a post regarding an FHA loan which you may find interesting - the link is provided below.
As mentioned the minimum is 3.5% with an FHA loan, which is a government loan. It gets a little complicated if you're looking to stay in downtown in a condo because of the numerous restrictions in order to lend on high rises.
If by home you mean a single family detached, you're safe with 3.5%. Interest rates for FHA are slightly higher than for conventional loans but still very competitive.
If you have any other questions or if a list of homes that meet your search criteria might be helpful, please let me know. I'm happy to help.
Happy House Hunting!
Ascent Real Estate