Home Buying in Berkeley>Question Details

348573, Home Buyer in Berkeley, CA

First time every buying a condo. How much money do I need to save up for the down payment on a condo in the Berkeley/East Bay Area?

Asked by 348573, Berkeley, CA Tue Feb 5, 2013

I think I can only afford a condo up to $230,000 in price. It would take me three years to save up $40K. Will the down payment on a $200K condo be $40K? I hope not.

This question was asked from this property: http://www.trulia.com/foreclosure/3106615537--Hearst-Ave-1-B…

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1. Stay out of debt. That means no fancy clothes, meals, trips, ect. Dont buy a car - take the bus or walk. Don't rent an expensive apartment in the meantime. Don't have kids.

2. Don't spend. Don't eat at restaurants or buy coffee. Cook for yourself and brew coffee at home. Stop smoking. You don't need new shoes every week or beer and cocaine every weekend. Quit all your vices where money is involved.

3. Work as a server at a restaurant/bar or some other high paying job. I was making $150-$400+ in a 6 hour shift just in tips when I worked at a pub. Put all that skrill in a box or savings account. Resist the urge to spend. Review step 2.

4. Keep your eyes on the prize. Set monthly savings goals for yourself. Set an 'end goal.'

5. In a year or 2 you will be amazed at how much $$$ you have and all the opportunities you have to choose from now. Life is good.
0 votes Thank Flag Link Mon May 27, 2013
Thank YOU!! I'm thinking about moving back with my parents and gladly they welcomed me back. No more renting a room for 700 a month.
Flag Thu Jan 16, 2014
I know how tempting it can be to do the numbers on your own. But it is free and easy to get a professional to give some solid advice on how to achieve your buying goals. Even if you are at the beginning of the process and you don't yet have a "solid" feel financially, a good loan broker can give you some guidelines to follow to get on track for a purchase.

Right now the market for buyers is very competitive and it helps to work with local loan brokers who know and are well known in the community. I work mostly in the Berkeley Area and am happy to share a list of loan brokers with you. Contact Laura@margulius.com
0 votes Thank Flag Link Tue Feb 5, 2013
I cover all the basics of pre-approval and working to become a homeowner on my short, free webinars (one each month). The link to the next one is below and we'd love to have you join us. I'm going to cover not only the pre-approval process, but specifically how the lender will determine your qualification, as well as the loan programs available to you.

Rob Spinosa
RPM Mortgage
0 votes Thank Flag Link Tue Feb 5, 2013
Hi 348573,

Step #1 is for you to obtain a "True Pre-Approval" (your most important step in my opinion).
See: http://www.Steven-Anthony.com/GettingStarted

You may need to improve your credit score, increase cash reserves, etc. before buying; however, at least you will have a roadmap to eventually purchasing if this is the case. Furthermore, this step can save you from wasting money on a purchase that does not close escrow!

0 votes Thank Flag Link Tue Feb 5, 2013
FHA approved condo's ---As little as 3.5% down. There is also a program combined with FHA that helps with 3% of the 3.5%. You just need to meet the income qualifier. In Alameda, the max income is $84,950 for a couple.

If you can afford 5% down or the condo is not FHA approved ---You can look at a conventional option.

Also, check out http://www.homepath.com and search homes there. These homes qualify for a Fannie Mae mortgage with no mortgage insurance and you can put down as little as 3%.

If you want more information...Do not hesitate to reach out!

Ivan Diaz
Home Mortgage Consultant
(415) 271-7740 direct/cell
0 votes Thank Flag Link Tue Feb 5, 2013
Be sure to check out the MCC tax credit when you visit Your-Road-Home.com
0 votes Thank Flag Link Tue Feb 5, 2013
The answers to these questions are critical to the direction you take and will receive lots of different answers. My suggestion is to vocus on finding an experienced ethical loan officer who works for a lender that offers all of the loan types. The loan offiers will only offer what their lender has available. Your-Road-Home.com is a good source of useful unbiased information. The articles in the Financing segment will serve you well. Also the article Consultation,Interviewing Loan Officers. The articles are number in the order of a step by step process. After you have gathered information you will find there agents availbe on the Turlia site and you will have the right questions to ask. Good Luck and by the way your market timing is perfect. Stephen Webber
0 votes Thank Flag Link Tue Feb 5, 2013
It depends and you should really speak to a Mortgage Broker to find out how much you will need. If you are buying into a condo association that has been FHA approved you may only need as little as 3.5% down. However, if you are buying into a condo association that has not been FHA approved then you may need 15% or more as a down payment. Keep in mind that you will have closing costs as well and they can run anywhere from 3%-4.5% of the purchase price. If you would like a recommendation for a Mortgage Broker, email me at gina@berkhills.com.
0 votes Thank Flag Link Tue Feb 5, 2013
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