Home Buying in Burbank>Question Details

V Ech, Home Buyer in Sherman Oaks, CA

Is it even possible to buy anything with very little down anymore? Excellent credit, stable 6-figure job!

Asked by V Ech, Sherman Oaks, CA Thu Aug 9, 2012

I may be posting this too early. I am looking to buy a house in the next 1-2 years, sooner if possible. My credit is excellent (750 ) with no negatives on my credit report. If all goes well, I will be completely out of debt in the next 6 months. The downside is that I went on this "paying down my debt" binge in the last 2 years or so and in the next 6 months, will have brought my debt down to zero from about $25K a year ago (I am excluding car lease here), and I therefore have nothing to put down right now.

What are my options? I should have enough for a 10% down payment or so within the next 2 years or so for a $400K home, but I'd rather not wait 2 years to buy a home if home prices may rise much. Any advice would be appreciated.

FYI - I have had a stable job over the last 8 years and my salary is over 6 figures and I am targeting the Burbank/Sherman Oaks and surrounding areas for a home.

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Answers

14
Hi V,

You can buy a home with 3.5% down. I am a member of the Burbank Association of Realtors, if I can be of any help let me know.

Von
0 votes Thank Flag Link Wed Apr 23, 2014
Wow !

Great Job !

You have a Great Plan !

You can buy a house with 3.5 % down with a F.H.A. loan ,interview 2-3 agents to work with,they can recommend you a great lender ! Good Luck !
0 votes Thank Flag Link Sun Jan 19, 2014
You have plenty of options! Everything you had described in your post is good. There are plenty of loan programs that you would qualify for, 10% down even lower. Have you spoken to any lenders yet? Do you need a referral? Please message me. I know a good one! :)
0 votes Thank Flag Link Tue Oct 8, 2013
Hello

An option would be to get an FHA loan ~ 3 1/2% down payment.

Most importantly, find a Realtor you are comfortable working with and a reputable Lender!

Denise Western (DRE #01433081)
Realtor
818 359 8896
Prudential California Realty
0 votes Thank Flag Link Mon Feb 4, 2013
Hello V Ech, Yes home prices and rents are on the rise so the earliest time to buy is in your best interest. If you are only going to have 10k to work with, you may consider CHDAP or CHF Access half percent downpayment program which can contribute towards your closing costs as well. The closing costs alone are going to be near your 10k. There is a lot of competition with low inventory right now and if you ask for closing costs, your offer will be at the bottom of the multiple offer stack. You have to pay your own closing costs these days for your offer to be considered. http://youtu.be/nb1xgSOCHec

The downpayment on a 400k purchase would only be $2,000 and which could contribute towards your closing costs as well so you could fund with less than the 10k you have. You may also consider premium financing which could cover even more of your closing costs. The lowest downpayment on conventional financing is 3% with a minimum 700 fico although you can do 100% conventional financing with CHDAP. You may qualify with about 5k total out of pocket expenses on a 400k purchase. It only takes a few dozen questions to qualify you in minutes. Here are some links to study and consider. Look at the example of various financing downpayment and fico scores required in the Conventional link below.

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/CHDAPLoans.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
9am till 9pm 7 days
0 votes Thank Flag Link Wed Jan 16, 2013
A loan officer will help you with this. In today's market, there are many options for you to consider. You are one huge step head of many by being prepared and meeting with a loan officer to discuss your needs and abilities and getting pre-approved. I will be happy to discuss further with you in regards to the real estate market when we speak directly.

Linda Dye
http://www.LindaDyeRealty.com
(818) 321-3311
0 votes Thank Flag Link Fri Aug 24, 2012
The others have given you good advice. You should talk to a mortgage broker or loan officer. Fha is a great program and it allows gift money and seller assist for closing costs .
0 votes Thank Flag Link Sat Aug 18, 2012
You sound very well qualified.
Conventional financing will let you go in with as little as 3%.
Your credit scores are perfect for that program.
If you have had a stable job for the past 8 years, you, most likely, have a 401k that you can borrow against for a down payment.
You are correct, prices will, most likely, increase.
Sooner is better than later. cg
0 votes Thank Flag Link Fri Aug 10, 2012
Thanks all, for your responses.
0 votes Thank Flag Link Fri Aug 10, 2012
Mr. Echambadi,
Thanks for your question. It really is not too early. I recommend to my clients to track the market for a time before they buy so that they can feel comfortable with their purchase.

Many of the previous answers probably have given you enough information to confirm that you can buy with excellent credit, low down payment and a good stable 6 figure income.

I would recommend talking to a mortgage broker and have them work with you on getting the most out of your situation. My guess is they will say to forget paying down the debt and work on getting something, maybe 3.5% down for an FHA. An FHA loan will somewhat limit your choices. Some sellers will not accept FHA loans.

In the end, it is best to contact a real estate professional that can help you. Please choose one that is not pushy or you will probably regret having called them. Find several mortgage lenders and get advice from them as to how to proceed.

Call or email if you have any questions.

Tommy Lee
DRE #01723594 SFC (Short Sale & Foreclosure Certified)
Premier Service® Professional
tommy.lee@dilbeck.com
323-821-2292
говорю порусскии
0 votes Thank Flag Link Thu Aug 9, 2012
There are many options for you with little down including FHA and conventional without having the monthly mortgage insurance payment. When you are ready, see a licensed CA loan officer to review your options.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Thu Aug 9, 2012
Yes, if you have a good credit, 2 years tax return - even 3.5%, 5% are the options for the deposit.
If you put less than 20% you have to pay a mortgage insurance. Please talk to your loan officer or let me help you to provide you one.
Need help, call me.

Regards,

Asya Akopyan
818 590 3025
0 votes Thank Flag Link Thu Aug 9, 2012
Hi there,
Great idea to save for a house, it will be cheaper than renting. You should really talk to a lender to explore your options. The lender will be able to tell you how much you can afford and what to work on. You always have the option of an FHA loan, which only requires a 3 1/2% down payment. Many lenders have conventional programs with 3 to 5% down payment. Based on your income and your debt, the lender will be able to tell you what amount you can afford. I also agree with you that waiting 2 more years might be risky, since nobody knows where prices and interest rates will be. Please feel free to contact me with any questions or concerns.
Best regards,

Liliana Alfonso
Realtor
Rodeo Realty
12345 Ventura Blvd.
Studio City, CA 91604
liliana2sell@gmail.com
818-414-0396 cell
818-761-7277 fax
http://www.liliana4realestate.com
DRE # 01759367
0 votes Thank Flag Link Thu Aug 9, 2012
There are conventional loans that allow for less than 20% down. There are FHA loans that allow as little as 3.5% down. I work in Burbank and Sherman Oaks. If you want to talk further just call 8182399599.
0 votes Thank Flag Link Thu Aug 9, 2012
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