Great answers! By any chance, are you in school? If so, your Mom may be able to buy as a "kiddie condo" (no, really...that is what the program is called!!!). The program has specific guides, but it may work for you.
It is pretty unlikely that a lender would approve the file as a "second home" since your Mom lives in Ventura...though not completely out of the question. I would need specifics and there would have to be some pretty convincing compensating factors.
There are many different down payment options ranging from zero to 100%. Your lender will be able to show you the benefits of each type of loan package and help you make the right decision for you and your mom.
Of course the smaller the down payment the higher the monthly mortgage, but there are other factors to consider.
Non owner occupied financing usually carries a higher interest rate. Is there any way that you could be on title and there by get a owner occupied rate, which will save you money.
Best of luck!!
There are many ways to do a loan, I have a strong lending and underwriting background and would like to help, but mostly as your Realtor. I can help organize the transaction so it works for both of you. Like I tell my clients, tell me the whole truth so we can structure the loan the right way without surprising the lender, processor and underwriter. You'd be surprised how long the truth will help you if you structure it correctly.
Most lenders are selling vanilla right now, and sometimes it takes someone who know how to do a loan that has a little more spice.
Hector R. Gastelum
Realty Executives Dillon
I should be more specific.
It is not an FHA loan, she will be taking out the loan on her own and will be the sole owner, and she lives far enough away (Ventura County) to have the property considered a second home.
It seems that 20% down is what she will have to do under these circumstances.
If both you and your mom will be on the loan, you may be able to use a conventional loan if you both qualify. You'll need to pay mortgage insurance until your equity gets to 20% or 22%, but it's better than an FHA loan with 3.5% down, where you have to keep the mortgage insurance for 5 years minimum.
If only your mom's going to be on the loan, she'll likely need an investor loan, which will require 20-25% down, although there may be loan programs that require less.
If you are taking out the loan, and your mom's giving you down payment money, then you may be able to go conventional with mortgage insurance.
I can send you some lenders to call to go over your options.
Cory La Scala, REALTOR
Lic # 01443391
I have a great lender to refer you to. He can help you with the particulars - is it an FHA loan (government backed)? If so it may allow for a smaller down payment than the standard 20% down.
Is your mom going to be the sole owner or is she a non-occupant co-borrower (borrowing with you)? Does your mom live nearby (making this home an investment property) or does she live far enough away to classify the purchase as a second home?
All of these items (and more) need to be considered to get you the best loan terms for your and your mom's situation.
I'd call Shanne Sleder with the Mortgage Planners. He's sensible, low key and very knowledgeable. He's got lots of sources for money available to fit all sorts of buyers' needs. Shanne's number is 858-829-7186. His email is Shanne@CAmortgageplanners.com .
Please contact me at 619-857-5881. I can help you locate the right property once you and/or your mom are qualified.
Thank you and good luck,
Mary Lawler, Realtor
Realty Executives Advantage