Home Buying in Los Angeles>Question Details

Keisha, Other/Just Looking in Los Angeles, CA

How much $ do I need to save to buy a $300,000 home with a 3% interest rate? Rate is from a teacher program.

Asked by Keisha, Los Angeles, CA Sun Mar 8, 2009

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6
Keisha,

Technically there is no amount of reserve required when buying with an FHA loan. You need to have the 3.5% down (2.5% can be gifted) and the seller can contribute 6% for closing cost. This would leave you with a total out of pocket expense of $3000.

That was the technical analysis. Realistically you should have enough to put down and at least 6 months of reserves in t the bank after you close. So let’s say your total mortgage payment including taxes and insurance is $2000. You want to have at least $12000 in the bank after you close.

Buying a home is not fun if your cash poor after closing. There are a lot of unexpected expenses that come out after closing. Don’t leave yourself penniless at closing.

Getting 3% is great! Being able to comfortably afford your payment is more important!

best of luck to you and if I can help with any of your financing needs please give me a call.

Ryan Brandenburger
954-394-9005
BayBurg Financial
0 votes Thank Flag Link Sun Apr 12, 2009
Dear Keisha,
Well you will need at least the 3% down payment (multiply %x300,000), but I would recommend you save quite a bit more then that. There are closing costs to consider and they vary, depending upon who you use.
I would save at least 20% of the purchase price to be safe.
0 votes Thank Flag Link Sun Apr 12, 2009
I am pretty sure its one percent for castrs Lucky you the interest rate goes lower every year being a teacher. I have a gal who specializes in the teachers program . Also you can ask the seller to pay your closing cost doesn't hurt to ask! Give me a call if you need help with that!
818-605-3204
Jonelle Bechard
Rodeo Realty
0 votes Thank Flag Link Sat Apr 11, 2009
Minimum down payment 3.5% of the purchase...your minimum contribution to the 3.5% is...1% the rest can be a gift. This is the program I'm aware of for teachers and non-teachers who work for shool districts throughout California.

If you need more informaltion regarding home loans for employees who work for the Calliforniia public schools & colleges then feel free to contact me.

Good luck to you...
0 votes Thank Flag Link Mon Mar 9, 2009
Hi Keisha,

Are you a first time buyer? If you are you may consider FHA loan which does not require downpayment but you need to save for closing cost(about 3%). Just remember not all homes/conds. qualify under FHA loans. Your agent need to check the homes to see if you can get FHA loan to purchase them.

Before you go shopping you need to talk to a lender. If you need referral I have 2 that I know. Please call me if you need their names and phone numbers.

Sincerely,

Homa
Prudential California Realthy
(949)637-3845
0 votes Thank Flag Link Sun Mar 8, 2009
Contact a local mortgage broker review your file. Based on your credit scores, debt ratio, down payment. Most lenders require approx. 3.5% or more as a down payment.

Budget for inspection, earnest money, appraisal.

Lynn911 – ~ National Featured Realtor
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Mar 8, 2009
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