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Just Wonderi…, Other/Just Looking in Fremont, CA

FHA only option with less than 10% down?

Asked by Just Wondering, Fremont, CA Thu Nov 5, 2009

If I have less than 10% down, something like 5-6%, then is FHA my only option?

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here are a few answers to your questions:

if I do want to find out what kind of down payment assistance program can I qualify for, where do I go. Your loan agent will, or should, know of several. The state of Calif. has some, as well as most cities, as Dawn mentioned.

Is that something a real estate agent would know? Not always, but your loan agent should.

Are there any income limits on such programs? Probably, but if you qualify for FHA you will probably be OK.

Good luck again,
Brian Ripp
Real Estate Broker
1 vote Thank Flag Link Thu Nov 5, 2009
My brokers in my office have not been having a problem getting FHA home sales completed for their clients. Also, I have a listing that is closing in the next week and the buyer has a FHA loan. You need to get yourself a Realtor you trust and let them help you. You have made the biggest decision already "to make the investment" congrats, let me know if me and my office team can help you...Dawn
1 vote Thank Flag Link Thu Nov 5, 2009
FHA will allow 3.5% down payment. There is also a Down Payment Assistance Program still available.
Rates are good and price are low, so it's a great time to use the FHA program.

Good luck,
Brian Ripp, CRS, GRI
Broker, Notary
Check my web site: http://www.BrianRipp.com
Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp
510-710-4905 cell
510-794-9006 wk
Realtor since 1985
DRE Lic. 00886348
1 vote Thank Flag Link Thu Nov 5, 2009
Just Wondering,

I just posted this on Trulia -

http://www.trulia.com/blog/garrick_1/2009/12/5_down_conventi…

We have 95% conventional financing for Owner Occupied Single Family Residences.

Th truth nis most lender do they are just not insurable by the mortgage insurance companies. We have a correspondent line available with mortgage insurance.

Let me know if I can help run a quick scenario for you.

Garrick
info@garrick.biz
0 votes Thank Flag Link Thu Dec 10, 2009
Different cities have different down payment assistance programs. Fremont has a first time home buyer seminar you can go to I went before with a client/friend and they have more than one program. Some had income limits some did not. They had one that had a 40,000 down payment loan that did not have to be repaid until the property was sold. You should contact city hall and find out when the next one is and plan to attend you will get some great information...Dawn.
0 votes Thank Flag Link Thu Nov 5, 2009
Thanks to all of you for the detailed answers, if I do want to find out what kind of down payment assistance program can I qualify for, where do I go. Is that something a real estate agent would know? Are there any income limits on such programs?
0 votes Thank Flag Link Thu Nov 5, 2009
Just Wondering,
You have several choices. FHA for sure - and this is not a bad choice in loans. I do not understand the reluctance of sellers to go FHA - especially those with decent homes (not trashed by the previous owners/renters) as I can do an FHA loan just as quick as any conventional loan, the appraisals are not tough and the MI is a non-issue. We are closing FHA deals in 21-28 days! I think FHA may have gotten a bad rap from lenders not familiar with FHA procedure.
CalHFA is the States first-time buyer loan and will go with 5% down payment. They have income and sales price limits, but that is a viable alternative as well.
Down payment assistance programs work well in that they may help provide enough money to move to a conventional loan which, in turn, is more widely accepted than current FHA offers.
Conventional - 15% down should be the minimum you should consider as a down payment as MI companies are incredibly tough to work with now - even turning down perfect credit if 3-4 tradelines (credit items) are not being used in a consistent manner. 20% down conventional is the new criteria it would seem for acceptance, but any and all of the above may help.
Best of luck.
0 votes Thank Flag Link Thu Nov 5, 2009
The reason I asked is that I saw somewhere else on the trulia blog about how someone with a FHA laon was finding it difficult to have loans accepted. Is that true?
We have excellent credit, been in stable reputed jobs, but we graduted with PhD's only 4 years ago and thus have not been able to save enough after paying off all loans (we do not have any credit card debt other than one car loan).

But with the CA (Fremont, Newark) market, saving 10% down is a big deal.
0 votes Thank Flag Link Thu Nov 5, 2009
FHA is probably the best product on the street for you at this time - unless the home you want to buy is in such poor condition that you think/the seller doesn't think an FHA loan is an option?

In that case, you can still look into an FHA rehab loah, which potentially expands options into homes that need some TLC. Check with a local lender who is well versed in doing this loans and has a proven track record of closing them.

PMI (Private Mortgage Insurance) is downright ugly right now on 5% down loans unless you are buying under market and have sterling credit. Makes much more sense to go the FHA route; your payment should be lower and they allow your credit to have some scratch and dent.
0 votes Thank Flag Link Thu Nov 5, 2009
Hi I have to agree with Brian Ripp. Your best bet is an FHA loan, is there some reason why you do not want one?...Dawn
Web Reference: http://DawnRivera4Homes.com
0 votes Thank Flag Link Thu Nov 5, 2009
There are some conventional loans available that will allow for a 5% down payment but the easiest route will be going FHA. The down payment for that program is 3.5%.

If you have any other questions please contact me at:

John & Sarena Villaescusa
Cell- 562-818-2671
Email- Johnv@kw.com
Website- http://www.VGroupHomes.com
Web Reference: http://www.VGroupHomes.com
0 votes Thank Flag Link Thu Nov 5, 2009
In most areas, because of declining property values, conventional mortgages are not available for those putting less than 10% down in a primary owner-occupied home. This is because mortgage insurers will not provide mortgage insurance. The only options are FHA, USDA, or VA. Some states offer programs as well, and you will need to check with your state's housing finance agency to see what other programs may be available.
0 votes Thank Flag Link Thu Nov 5, 2009
There are additional options including teacher programs and VA. In addition to rural housing loans depending on the area of the purchase. I would be happy to discuss your options if you're interested.
0 votes Thank Flag Link Thu Nov 5, 2009
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