Will, Renter in Palo Alto, CA

First Time Home-Buyer,want to buy a home in EPA under 250.000.What is the required down payment amount through FHA,including closing cost.?

Asked by Will, Palo Alto, CA Thu Feb 10, 2011

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Hello Will, If you have a minimum 580 fico score, you may qualify for FHA CHF Access half percent down payment program which can also contribute towards your closing costs as well. Your approx. closing costs on 250k is about $6,000 dollars. I may be able to get you into the purchase with approx. $4,750 total with hafl percent down and premium financing contributing towards your closing costs. I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. I only need to ask a few dozen questions to qualify you in minutes.
Here is what is available in EPA right now to consider up to 300k which start at 207k which is only $1,050 down and approx. $1,515PITI and up.
Click the following URL to see the listings:
http://matrix.mlslistings.com/DE.asp?ID=1441736521

Here is a flyer and needs list to gather for loan processing your approval. I can issue a pre-approval to get you out shopping for the home of your choice today...

CHF Access half percent down flyer, pdf
http://tinyurl.com/9ewk9nq
Sheryl Arndt, standard needs list checked, pdf
http://tinyurl.com/9m2rsb2
Why Rent brochure
http://www.frankandsheryl.com/Documents/Why%20Rent%20brochure…
http://www.frankandsheryl.com/Documents/Why%20Rent%20brochure…
CHF Access income limits http://tinyurl.com/8lzf8he

http://www.Under640FicoScoreLoans.com

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Broker – Sr. Loan Officer
DRE# 01440252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Sat Oct 27, 2012
William,

Unfortunately, none of here can provide you with an accurate answer on this question since a great deal depends on your credit history, FICO score, debt ratio and income. We can give you "general costs" but to really determine how much this will cost you, please contact a qualified FHA mortgage specialist for assistance.

FHA requires all homeowners to have a down payment equal to at least 3.5% of the sale price of the home. So, for example, at $250,000, you'd be required to have a down payment of at least $8,750. However, that's not the only amount that you'll need to purchase a home.

Since East Palo Alto is located in San Mateo County, as the buyer, you will also be required to pay for:

1. Title Charges for you as the buyer, and a second title policy for your mortgage company
2. Escrow Fees
3. Recording Costs
4. Inspections (Home Inspection and Termite Inspection)
5. 1/2 of the City Transfer Tax
6. Insurance for the home
7. Property Taxes from the date you take possession
8. Costs related to loan origination fees, points and charges

Title and insurance fees vary based on the company that is being used and the amount of insurance required by the mortgage company. Documentary and notary charges are about $150 per transaction. Inspections for a smaller home can range from $500-700. The insurance cost will vary, but plan on about $800 per year for a fire and liability policy. Loan fees will vary based on your credit history. The better your credit score, the less fees you'll incur, but, again, the only way to determine the cost is to talk with a qualified mortgage broker for assistance.

On the average, however, you're looking at another $6000-8000 in loan and closing costs, so you'll need as much as $16000 to purchase a home worth $250,000 in East Palo Alto.

Again, before you do anything, talk with a mortgage broker or FHA loan representative who can review your financials, tax returns and your credit history and give you the best and most accurate estimate of the money you'll need to purchase a home.

Sincerely,
Grace Morioka, SRES
Area Pro Realty
Tel (408) 426-1616
0 votes Thank Flag Link Thu Feb 10, 2011
William
Sally is correct the minimum down payment on FHA financing is about 3.5%.
So on a $250,000; you are looking at a $8,750 down payment.
Figure you will need another $3,000 or $4,000 for closing costs.
Lender may want you to have some funds in reserve after purchase so $15,000 ballpark.
Sally is correct you can sometimes get the seller to pay closing costs which will reduce cash requirement.
I sell lots of property in East Palo Alto - abut 12 houses last year.
One issue you may run into is for $250,000, the house in EPA will probably be a fixer upper.
FHA is very stringent on property condition. So while you may be qualified, the house may not qualify.
Please let me know if you have further questions.
I can refer you to a good loan agent at either Bank of America or Wells who will do FHA loans.
0 votes Thank Flag Link Thu Feb 10, 2011
FHA minimum downpayment is 3.5% (not counting closing costs). However, buyers can often ask sellers to pay their closing costs, or a portion of them. I can refer you to a great mortgage broker who can speak with you about your different loan options and get you prequalified. Let me know if I can help!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Thu Feb 10, 2011
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