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)
818 359 8896
Prudential California Realty
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.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
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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
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.
DRE #01723594 SFC (Short Sale & Foreclosure Certified)
Premier ServiceÂ® Professional
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.
818 590 3025
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.
12345 Ventura Blvd.
Studio City, CA 91604
DRE # 01759367