Home Buying in Sylmar>Question Details

Minnie, Home Buyer in Sylmar, CA


Asked by Minnie, Sylmar, CA Sat Sep 3, 2011


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Try This program named NACA. They Are Located in Oakland off of Broadway. Im currently going through them now, the Process is long as they dont have that many workers but the program does %100 financing for first time home buyers and they are the nations leaders for helping ppl stay in their homes if you are going through a forclosure. Another company is Habitat for humanity, they are in every major urban city in the U.S. the only con about them is you are limited to areas where they have homes, which in most cases is the ghetto, which, dont get me wrong, thats good they want to build up the areas they grew up in, but they are usally pretty rough areas that most people dont want their young kids growing up in, if they can help it, so owning a home in those areas can make you think twice. Hope this helps good Luck!!!
2 votes Thank Flag Link Sat Sep 3, 2011
Check your area of the valley for First Time Home Buyers Class sponsered by the city and or county so you can become educated in the process.
0 votes Thank Flag Link Wed Nov 14, 2012
You can work with me to provide some kind of ownership like Tenant in Common,
Danny (661) 312-3218
0 votes Thank Flag Link Sun Aug 5, 2012
While you can indeed document your funds unless you're hiding or running there's really no reason not to have a bank account and establish credit. But then that's just my opinion. My own Father had a heck of a time trying to qualify for a RE purchase because his credit was too good.

He never had any. He didn't trust banks and he didn't believe in credit cards. But he never missed a payment nor was he even late. He soon learned, however, that he would have to become a member of the real and modern world. Sure you can navigate through life without is but it's so much easier if you don't have to.
0 votes Thank Flag Link Sun Sep 4, 2011
Well Minnie,
If you do this well, what is stopping you from opening a bank account? It's safer then keeping your money at home, plus there is a small amount of interest you will gain.
While you are opening your account, ask for a linked credit card as well in order to establish credit. You might not be able to get a loan now,but you will after credit has been established.
0 votes Thank Flag Link Sun Sep 4, 2011
Hi Minnie, not having a bank account won't disqualify you from having a mortgage, however if you have to bring in any money to buy the home when you go to the loan closing (like your down payment & any closing costs) it will need to be "sourced", meaning documentation showing where the funds are coming from is required. The amount of money that is needed to be brought in has to be in certified funds - meaning a cashier's check, money order, a wire transfer, etc. and the mortgage lender that approves you will want to know where that money is coming from ahead of time, as that is also part of the mortgage approval process. You can get a gift from family/relatives, and banks will even recognize that some households accumulate sums of money outside of the regular banking sources, so you can even save up cash at home, as long as it stands the test of reason and common sense for you to be doing so.

As far as being able to find a home within your budget, to expand your search, I also suggest you look into NACA, as if you are not in a huge rush to buy a home, they will be perfect because you go through education courses as well as be able help you with lower-than-market interest rates for financing and no mortgage insurance - both which will lower the monthly payment/increasing your purchasing power. Information on NACA:


http://nidonline.org/education/resources_for_homeowners.html & http://www.nw.org/network/consumers/buying-first-home.asp also has very helpful information for first time homebuyers & homeowners which I feel you should be familiar with.

The reason that "credit" is bring brought up, is that it's also another important factor when qualifying for a mortgage, and in general people who do not have bank accounts tend not to have a lot of or any credit. However not having regular forms of credit, called traditional credit, isn't always a show-stopper to being able to qualify for a mortgage. Like has been mentioned, if you have forms of alternative, or non-traditional credit, then that can be used as a substitute for the traditional credit (car loans, credit cards, student loans, etc.). I explain what non-traditional credit is, how much non-traditional credit is needed to be considered sufficient, and how to verify non-traditional credit all in the "web reference" below.
0 votes Thank Flag Link Sun Sep 4, 2011
Minnie, the first thing I would do is get a bank account. Lenders, especially in today's market" need to see signs of credibility and stability. Having the same job for 13 years does not credibility buy. In fact in will cause a lender to become somewhat suspicious.

I don't know why you don't have one but for your own sake if you ever want to be a homeowner you need to open one. But even that won't garner you any instantaneous results. You will need to establish a track record for at least 6 months to a year.

Without a bank account I assume you don't have any credit cards or even credit for that matter as most credit cards are usually linked to a bank account somehow. When you open your bank account deposit at least $500 in a secured savings account. Then apply for a credit card from that bank and use the secured savings account as collateral for your credit card. Be sure to interview the bank before opening an account to make sure that they would go along with this plan.

Then start using that card with the intention of paying it off every month on time for at least six months to a year. By this time you've had a chance to built a little credit history, establish a "balanced" bank account and hopefully keep adding to your savings account, thereby increasing your credit limits and even applying for some additional credit cards, using them and paying them off on time.

Lastly, I would go with a bank that offers home mortgages from the get go. This will make it a lot easier to qualify for a home mortgage since you will already have a proven track record with them. You may also want to consider a late model Factory Built home in a resident owned community with plenty of amenities for your children. They are single family detached and usually have a little yard and provide you and your family with a little space around you. There are several such communities around the Sylmar area. Good luck.
0 votes Thank Flag Link Sat Sep 3, 2011
The guidelines below were copied from the Hud.gov website for FHA 2011 guidelines.

Minimum credit score at or above 580 are eligible for maximum 97.5% Loan to Value for FHA financing (3.5% down-payments required with purchases).

* Minimum credit score between 500 and 579 are restricted to 90% Loan to Value for FHA finance options (10% down-payment required).

* Minimum credit score of less than 500 are not eligible for FHA- mortgage loans insured by the government.

* FHA borrowers with a non-traditional credit history or insufficient credit are eligible for maximum financing if they otherwise meet FHA guidelines.
0 votes Thank Flag Link Sat Sep 3, 2011
Hello Minnie
I would recommend you to speak with mortgage broker. I have one in mind for you. Please email me realtorjolanta@gmail.com
0 votes Thank Flag Link Sat Sep 3, 2011
Minnie - As others have stated, you need to not only establish a credit history but a paper trail. Once upon a time, alternative credti sourcest was acceptable to get a loan but these days, it is much harder to get a traditional loan with alternative credit sources. Even the local down payment assistance programs require a credit history. I speak from experience when I say that.

I've provided a link for more info on some of the local dpa programs. If you have any other questions and/or concerns, please feel free to contact me.
0 votes Thank Flag Link Sat Sep 3, 2011
Hi Minnie,
My recommendation would be to meet with a lender who can guide you in the right direction. Someone who knows all the city and down payment assistance programs. The Southland Regional Association of Realtors is holding a Homebuying Seminar on Saturday, September 17, 2011 from 10 am to 12 pm. You will benefit from attending.
Please do not hesitate to contact me if you need any additional help or information.
Best regards,

Liliana Alfonso
Dilbeck Real Estate
0 votes Thank Flag Link Sat Sep 3, 2011
Ask Realtors in your area for a good Loan officer who will work with you to qualify for a loan.

FHA and Hud recognizes that some borrowers may not have yet established a credit history. For those borrowers, and those who do not use traditional credit, the lender will try and develop a credit history from utility payment records, rental payments, automobile insurance payments, cell phone service payments, or other means. This is called non-traditional credit. They may even suggest you open a secured credit card account.

A bank account can be opened at any time, its never too late. 2 months of bank statements will be required.

You may be closer than you think to buying your first home.
0 votes Thank Flag Link Sat Sep 3, 2011
Hi Minnie,

You have to start papertrails. Without a bank account...where does the money go? Obviously don't answer that in public, here. But you need to build a record of credit. So get a couple small credit cards, use them and keep the balance below 50%. Get a bank account and consistently put money in the account. Any money used for a home purchase has to show where it's been...unless you can go in and pay cash for a home entirely.....

It sounds like you are in good shape. I would find a good lender and make a plan....in about 6 months, you should be able to build the file up to make some moves.

Good luck to you,

0 votes Thank Flag Link Sat Sep 3, 2011
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