Home Buying in Los Angeles>Question Details

Johnny Faris, Home Buyer in Seattle, WA

Could I buy a $200,000 home?

Asked by Johnny Faris, Seattle, WA Sat Apr 13, 2013

At 19 years old. $70,000 in my bank account. Credit score 725. Summer job fishing in Alaska earning $30-40,000 a summer. College student working part time for minimum wage during the school year.

Is looking into getting a small condo in LA around $200,000 out of resonability?

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Answers

15
Roymortgagepro’s answer
Give me a call, I work for BBVA Compass Bank in So. Cal and we offer financing on condos. The following are the bullet points on our program:

1. 3% down payment.
2. No PMI.
3. 620 minimum credit score.
4. Non-warrantable condos allowed.
5. This program has either an income restriction or property census tract restriction, so call me to discuss if this fits your needs.

(858) 531-6732 Roy Padilla / roy.padilla@bbvacompass.com

Thanks!
0 votes Thank Flag Link Sat Apr 20, 2013
I must say 19 and 70k is a great little nest egg to start off your life in LA. I believe its more than possible to get into a nice home with your budget. However, if you plan on financing, be sure to be prepared to provide a source a income to your loan initiator.
0 votes Thank Flag Link Mon Jul 1, 2013
That's awesome! You should be fine.
0 votes Thank Flag Link Fri Jun 28, 2013
If you have the down payment (plus closing cost) a minimum of 620 credit score, and a minimum of 2 years in the job, of course you can get a property in Southern California in the $200,000 range. Check out my reviews and contact me when your ready to buy. But don't take to long to make up your mind because in some cities in Southern California, home prices are actually back at 2007 levels (before the real estate crash) and the longer you wait, the more expensive the property will be, They stopped going down in price. Who ever you hire, make sure the agent is a full time agent like my self and not a once in a while type of agent. Check out http://lahouse4sale.com to search the Southern California MLS. Izzy 213.221.1321
0 votes Thank Flag Link Thu May 16, 2013
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0 votes Thank Flag Link Thu May 16, 2013
Yes. You can buy a condo around $200,000 in several area of los Angeles county.
Leela
0 votes Thank Flag Link Sun Apr 14, 2013
Hello Johnny, Do you need listings emailed to you to consider? It only takes a few dozen questions to qualify you in minutes for the loan program to fit your needs the best financially. You may consider 20% down conventional with NO Mortgage insurance and pay your own closing costs.

You may choose from 3% down conventional with a minimum 700 fico score or 5% down conventional with NO Mortgage insurance (Lender paid MI) or FHA 3.5% down but 20% down conventional is your best payment. Here is a list of the documents to gather for processing a loan approval, DU Approval or pre-approval letter to get out shopping for a home of your choice.
http://tinyurl.com/9m2rsb2 Here are some links to study and consider that I offer.

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/FHA.aspx

http://www.under640ficoscoreloans.com/Pages/JumboLoan.aspx

http://www.under640ficoscoreloans.com/Pages/CHDAPLoans.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
9am till 9pm 7 days
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0 votes Thank Flag Link Sat Apr 13, 2013
Hi Johnny,
Happy Saturday !
There are many area in L.A. that you can buy a condo for under $200,000.00. Some areas are better than others. The first step is to talk to a lender & get pre-approved for a loan,many Realtor can refer you to someone they work with .Good luck with your house search! If you have any questions,it would be my pleasure to answer for you !
Sincerely,
Brad
0 votes Thank Flag Link Sat Apr 13, 2013
Mr. Faris,

Congratulations! Keep on going that way, and make sure you do not peak out young! The sky is the limit... I hope you are thinking of a great school... I'm all about USC (My Alma Mater)

That said... yes you can get into a condo for that much money in some areas here... do you want to?

How about living in the dorms and enjoying the college experience... and buying a duplex or triplex (maybe 4) and join the ranks of the landlords?? have the tenants pay your mortgage, start building equity... just some food for thought.

If you find my answer give it a Thumbs Up.

Ron
0 votes Thank Flag Link Sat Apr 13, 2013
Even though you've done a great job of saving money and earning an awesome credit score, your price range is low. And....please investigate thoroughly those areas where a $200K home is feasible. You know the old saying, if it's too good to be true, it probably is!

That said, find a local Realtor and go see some of these places...get a good visual of what this price range looks like in the market.

Best of luck and great job!
0 votes Thank Flag Link Sat Apr 13, 2013
Hi Johnny,

There are some areas of Los Angeles you can get a condo around $200,000. You should first talk to your bank where you have your account or any local bank/credit union to see if you can get pre-approved for a loan.

Once you get pre-approved, then you can start the home searching process.

Feel free to contact me with any real estate related questions/concerns.

Best,

Jamie Tian
Rodeo Realty Fine Estates
(310) 717-1321
JamieTian@RodeoRE.com
DRE #01920120
Web Reference: http://www.JamieTian.com
0 votes Thank Flag Link Sat Apr 13, 2013
Unless you buy using a Private Money Investor 20-30% down payment, you're going to have a VERY difficult time qualifying for a tradition loan. My company is very liberal with recently graduated student who have now found a job. But for a currently enrolled student, you will need a two work history. I had a similar case where my client who went to Alaska each year to work aboard a fishing boat. Although the season was short, he had worked for two seasons and he had a letter from the Captain stating he would be hired in that capacity each season. In that case we used his normal minimal yearly income added the seasonal income and then averaged him for 24 months and he was good to go. That might be your best best. the pluses are you have saved some money and your credit is very good. Keep it young your future looks so bright you gotta shades!

Best of Luck!
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Sat Apr 13, 2013
Best next action is to ask a local Mortgage Broker by clicking "Find a Pro" in the main menu at the top of this website. http://www.naplesrealestateguys.com/
0 votes Thank Flag Link Sat Apr 13, 2013
Your credit score is good. $70k in the bank at 19 years old is AWESOME! Your income may hold you back a little.

Lenders are not so much interested in whether you are working or retired. They want to make sure that you have the finances to pay the mortgage. This income can come from a pension, social security, rentals or even savings.

They will also examine your debt to income ratios. Banks look at this two different ways: front-end ratio and a back-end ratio.

FRONT END RATIO: This looks at the how the mortgage payment compares to your monthly income. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 33 percent of your gross monthly income.

Formula: Monthly Salary x 0.33

BACK END RATIO: This formula determines the maximum amount a lender will allow you to pay on all debt including housing expenses, car loans, child support and alimony, credit card bills, student loans and homeowner association fees. Your total monthly debt obligation should not exceed 40 percent of your gross income.

Formula: Monthly Salary x 0.40

This will help you to gauge your finances and the amount of mortgage that you can afford.
0 votes Thank Flag Link Sat Apr 13, 2013
It is possible to obtain financing with your figures and there are properties in your price range, however you must be ready (pre-approved and have money ready).

Also you must be ready to be agressive & able to execute quickly as most of the properties in this price range sells very quickly and usually have multiple offers.

Hope this info will help you!



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0 votes Thank Flag Link Sat Apr 13, 2013
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