Home Buying in San Francisco>Question Details

Seanf, Home Buyer in San Francisco, CA

How do I choose the best loan program for me, what factors do I consider?

Asked by Seanf, San Francisco, CA Mon Mar 11, 2013

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It will all be determined by what your fico scores are, debt to income ratios and how much you want to invest into the down payment and closing costs. If you have a minimum 580 fico score, you may qualify for 3.5% down or as low as half percent down program. If you have a minimum 700 fico score, you may qualify for 3% down conventional or a minimum 620 fico score may qualify for 5% down conventional with NO Mortgage insurance (Lender paid MI). Here are some links to study and consider that I offer and there is an example of various loan programs, down payments, etc in the conventional link below.





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0 votes Thank Flag Link Mon Mar 11, 2013
In order to help you figure out what would be the best loan program for you, a mortgage consultant should be asking you what plans you have with the home you are buying. For example, if you are planning to live at the property for less than 10 years or plan to sell to move up within the next 5 years, you may be best in an adjustable rate loan with lower rates and payments, but if you think you will live in the home for over 10 years, a 30 year or sometime of fixed rate mortgage would be the most advisable for you. The other factors to consider is the down payment you have available for your purchase. If you have limited funds, you can do as little as 3.5% down payment using an FHA loan that would allow you to have a loan amount up to $729,750.00 in some counties. Working with a professional that can guide you in the process is essential to making the right decision on the loan that you decide to pursue.
0 votes Thank Flag Link Fri Mar 22, 2013

You'll want to consider the following:
- time frame you intend to hold the loan-short/long term
- interest rates vary for ARM, 15 or 30 year mortgage
- take into consideration overall financial plan

When discussing your intentions with a lender have them provide you detailed figures and scenarios that will assist you in making a decision.

Here is a local referral :
Sr, Mortgage Advisor
123 Mission Street, Suite 850
San Francisco, CA 94105
P: 415-710-6651
F: 415-593-8927

Let me know if you have any additional questions.

0 votes Thank Flag Link Mon Mar 11, 2013
The Gov'ment makes it easier for you:
Just ask for your GFE from the Lenders.
It shows the Interest Rate, the APR, and all the charges and fees.
It will make it easy to compare.
0 votes Thank Flag Link Mon Mar 11, 2013
How long do you plan to keep this house?
Are you a risk taker?
Would you sleep better a night if you have a 30 yr fixed rate mortgae with a higher rate but with the advantage of knowing what your mortgage payments are going to be the same for the next 30 yrs and knowing that your loan would have been fully amortized by then.
Or Are you willing to pay less in mortgage for the same 30 year fully amortized program a rate that might only be fixed for a shorter period of time (the first 5, 7, or 10 yrs)
0 votes Thank Flag Link Mon Mar 11, 2013
It all depends on your current financial situation and your price point. There is no easy answer without more information. Consider speaking with a couple of good mortgage professionals to get a better idea. Email me for SF based lender referrals.

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
Web Reference: http://www.oggikashi.com/
0 votes Thank Flag Link Mon Mar 11, 2013
Hello Sean,

Most popular program is 30 year fixed - and the rates are incredibly affordable.

The rest depends on your downpayment amount.

No program is perfect, unless you make a 20% down.

So, meet with a good (preferably referred to you by a trusted source) professional mortgage person,
and go over your current financial situation.

Some programs are available for a super high interest rate, and not for others.
Or, you have to make a certain downpayment amount on a condo.
Principal residence or 2nd home, or maybe investment?

All factors, including your employment or self-employment situation - need to be considered,
before you can figure out which program will work best at this time.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Mon Mar 11, 2013
The choice is dictated by your current financial position and your game plan. I prefer to put down the largest down payment you are comfortable making. It will get you into better rates, no mortgage insurance, and will give you more market leverage with sellers and agents. A simple way to determine the actual cost is to multiply your monthly payment times the number of months you plan to stay in the property vs. a different loan type and down payment. If it's a short term living situation, paying up front points to reduce the rate is not advisable.

Hope this helps,
Todd Akes
0 votes Thank Flag Link Mon Mar 11, 2013
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