Trulia Long…, Other/Just Looking in Long Beach, CA

How big of a down-payment can first time home buyers expect to put down in Long Beach?

Asked by Trulia Long Beach, Long Beach, CA Wed Apr 17, 2013

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7
It is a number game. Buyers should be prepared to have to write several offers before on gets accepted.

Sellers are favoring offers with 20-30% or more down.

This is a sad reality for first time buyers and their agents.

VA buyers are not required to put ay money down
FHA buyers and put down as little as 3%
Some conventional loan program offer low down payments

BUT, getting an offer accepted with less than 20/30% down will remain hard as long as the investors are l dominating the buying side of the market.

The Real Estate market goes through waves all the time. We are currently in a seller's market, and one in which investors are vey active and gaining the favor of sellers looking to sale fast. Combined with limited inventory the current market is not too friendly for the first time buyer.

My advice to first time buyers:
Stay engaged in the buying process. Be patient. Do not get your heart set on any one house. Look at it as a numbers game. Be prepared to write several offers.

Best Regards,
Kawain Payne, Realtor
0 votes Thank Flag Link Thu Jun 13, 2013
Interesting question.
If your pertaining to the Long beach program, you need at least 1% of your own money.
Otherwise, if you're talking in general, it's the same with any other cities on different
program like FHA, VA, etc.
Hope this helps.

Roberto
0 votes Thank Flag Link Sat Jun 8, 2013
The previous replies pretty much hit the proverbial nail on the head.
If you looking for an entry level home, say under $350,000 - $400,000, be aware there are many cash buyers still participating in this marketplace. Many sellers will accept a lower all cash offer over an offer where the buyer must acquire a loan.
The way to combat the all cash buyer is to offer a fair-market price, place a larger down-payment, have your pre-approval letter in-hand from a direct lender, and be able to show proof of funds that you have money available to cover that will cover taxes and mortgage payments for the next 6-months!

I hope this helps.

Jerome Hodge
Realtor
First Team Real Estate
DRE 01866533
Cell# 562.413.6068
0 votes Thank Flag Link Thu Apr 18, 2013
I don't think you're asking the right question. The amount a buyer puts down on a home is determined by the loan program they qualify for, We all know that FHA (or VA) are the most common ways that first time buyers go.

Now, ask me if you can win a multiple bid scenario with these loans, and these days, the answer is often 'no.' Thus, if a first time buyer wants SUCCESS in today's ridiculous buyer's market...chances are they have put 10% or more down.

This market is just not kind to first time buyers.
0 votes Thank Flag Link Wed Apr 17, 2013
I agree with both answers below, however, the market is EXTREMELY competitive right now with lots of buyers bidding on a very low inventory of properties for sale. So, in my opinion, with the current real estate market, a bigger down payment of at least 10 - 20% is going to put you in a much better position when submitting an offer on a property that will probably have many other offers along with yours.
Good luck!!
0 votes Thank Flag Link Wed Apr 17, 2013
It does depend on the loan type FHA is at worst 3.5% and at best .5% of the purchase price...if you qualify for a VA loan you would put nothing down.

Jeff Johnson
Prudential CA Realty
562-900-9783
0 votes Thank Flag Link Wed Apr 17, 2013
How big? As much as you want. How little? As little as .5% of the "sales price" if you qualify for the handful of DAP, down payment assistance programs, which are available to you such as CHDAP and SCFA to name a few. If you are a Vet you can actually come in with a zero down payment.
0 votes Thank Flag Link Wed Apr 17, 2013
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