A couple points:

1) I also wanted to add some aditional insight for you, as a Teacher in California, you have access to a special program referred to as SmartMove, see http://www.smartmove.com. You can earn a cash rebate from the Buyer's Agent's share of the commission, (approximately 15-18%). Also, you can get discounted title and escrow rates from 2 different Title Insurance companies, and other benefits as well. The copmmon practice is for the Seller to select which Title Insurance and Escrow company to use, but that is not set in stone, and everything is negotiable. If you have access to discounted rates on Title Insurance and Escrow fees, that discount needs to be offered to the seller as well, so all parties will benefit.

2)
I personally handle mortgage financing, and have been doing so for the past 11 years in California. I really recommend CalSTRS loans for teachers and employees of the California Public School system. This loan program has been mentioned in previous responses to your question. on the 80/17 program, the seller can contribute 3% of the sales price towards escrow to cover closing costs. Also, you will want to ensure your credit score is as high as possible, as FannieMae charges something referred to as a Loan Level Price Adjustment, and there are various factors that contribute to the Loan Level Price Adjustment. The LLPA is essentially manifested as a charge for the loan, similar to discount points. Your credit score will be the most important factor in determining the LLPA. The higher the credit score, the lower the LLPA. A 740 credit score has a 0% LLPA. A 620 credit score has a 3% LLPA.


Brendan Bracken
Mortgage Planning Specialist since 1998
DRE#01259687
http://www.brackenteam.com


858-518-0523

If you are still looking to purchase a home here in Morgan Hill I would like to offer my services. I am a licensed Realtor since 1995. I have lived in Morgan Hill for 9 years and love it.
I have also worked for several banks in the last 10 years so I have a lot of loan knowledge.
You can contact me if you are still interested.

Melisa Garr
Exit Realty Alliance
melisa.garr@verizon.net
408-690-2400

Hi Ian,

Because we specialize in these types of loans, let me offer a little clarification on a couple of the answers you received here.

"The Fannie Mae Teacer Next Door Program could be of BIG help to you" - These programs are for specific HUD owned homes. Yes, a good program - it's just that inventory is a little slim in some areas

"If you are a certified TEACHER in California" - Glen is pretty accurate except he has a couple of different programs mixed up. The Extra Credit Teacher Program requires that you be a certified Teacher, and that program has been temporarily suspended.

The CalSTRS 80/17 is the loan program that provides for only 3% down and no mortgage insurance. There is no program that will allow you to go to 95% with no mortgage insurance.

"I'm currently closing 2 deals for teachers using the CALStrs Loan program specifically for ALL employees of the California Education System." - Bill McCord nailed it. You do not need to be a certified Teacher and it really is the best option for education professionals in California. I know Bill personally and highly recommend him as a Realtor

If you are a member of CalPERS - they offer a down payment assistance program that could allow you to borrow 100% with no money out of pocket.

Hope that helps! I've included a link to our homeownership education site - I conduct free on-line classes about all of these loan programs. It's a great way to start the process. Congratulations for educating yourself on these program!

The Fannie Mae Teacer Next Door Program could be of BIG help to you. Sit down with someone that specializes in home loans and discuss.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com

Hi again Ian - Concerning the home on Sara Jane Ct., be aware that this is listed as a short sale. That means that the sale is dependent on the bank accepting only about half of the $500K loan on this property as payment. Short sales can be very difficult and frustrating, as some banks have taken 2-3 months to even respond to an offer and then the majority of the offers are rejected. If you are interested, there are dozens of other homes available in Morgan Hill that are not short sales.
Take care,
Roland

Hi Ian - If you are currently spending $2100 on rent, you are wise to try to buy a home for around $275K. Your PITI (principle, interest, taxes and insurance) would be less than $1800/month before considering tax benefits. Check with your tax advisor because you could save a few hundred dollars more.
I don't do loans, but I can give you the names of a couple mortgage bankers if you want. Checking with your own bank is a good place to start. What you need to do is get pre-approved, not pre-qualified, and there is no charge. A qualified banker will be able to inform you of any and all loan programs available and help you apply to the one that best suits your needs.
Let me know if you want me to help you with the purchase of your home.

Good luck,
Roland

Hey Ian, It doesn't cost to get prequalified.
If you are a certified TEACHER in California, the financing options for teachers are currently better than ever. Teachers can buy a home with as little 3% down, and only 1% of that needs to be their own money (the rest can be gifted). They can also get rates as low as 5% for a 95% combined-loan-to-value loan, with NO monthly or up front mortgage insurance. In addition, this “CalSTRS” financing offers 1st and 2nd mortgages with no payments due on the 2nd mortgage for five years, providing exceptionally low payments for teachers who are first time homebuyers. If a couple is buying home, only one of qualifying spouses needs to be a teacher. You can enter info on my site below to get prequalified. Let me know if I can help out.

Thanks,

Glen
mitchellinvestmentsandrealty@gmail.com

Hi Ian,
I'm currently closing 2 deals for teachers using the CALStrs Loan program specifically for ALL employees of the California Education System. This is available for everyone workin for the Public Education System be they Primary School Janitor or Community College Principal, and everyone in -between.
This is absolutely the BEST 1st time buyer program available anywhere.
Call or e-mail and I'll send you details of how it works but as an overview you need 3% down payment and O.K. credit. You then qualify based on and 80% mortgage. To round out the finance you get a 17% 2nd mortgage which has no payments for 5 years.
It's too good to pass up.
Bill

I would look for a loan expert who specializes in FHA loans. I would also try to find a person who works on commission, unless you have plenty of time to wait for a 9 to 5er to get around to your needs. I read that CA put most of their loan programs on hold do to lack of funds. You can still get a great deal through FHA. Good luck!