If you will give me your parameters, I will e-mail some possibles so that you can see if there are any available to you.
Barring a USDA loan, you might be able to make it on $10,000.
$120 probably makes it too.
We might be able to look for a HUD home too.
I have an excellent Mortgage Officer in mind who could help too.
Let me know if I can help.
Good luck and may God bless
$10,000 is not very much if you need to use it for the down payment and the closing costs, but with the right loan and (because it is a buyer's market) the seller contributing the maximum amount allowed (vary with different type of loan) toward your settlement expenses, you more unlikely can do it. A portion your money can be used for your "reserve". You need to find a loan officer with a reputable Mortgage Company (do the face to face instead of the on line deal), get your pre approval letter and start looking at properties.
I did a quick search, and this link is just FYI, I hope it gives you an idea of what you can get.
Good luck to you.
Yes, $10, 000 should be enough to purchase a home of approximately $125,000, but you would probably need closing cost assistance to be sure, either paid by the seller (varies, up to 3.5%) or by other mortgage programs such as CHF Platinum which assists buyers with 3% for closing costs but is only offered by selective mortgage lenders and is currently on hold (could become available in October 2011). Also, FHA allows the buyer to receive gift funds, 100% of total closing funds if needed, thus, the buyerâ€™s savings account does not need to be large, your $10,000 should be fine. To verify the accuracy of this information and for more information on closing cost assistance programs and loan pre-approvals, however, please consult a mortgage lender (each lender offers different mortgage programs, rates, fees, and qualification requirements). If you would like me to make mortgage lender recommendations, please contact me at 209-204-5494 or email firstname.lastname@example.org. Thank you for the opportunity to answer your question.
Dre # 01446411
Century 21 M&M and Associates
"Thank You all so much for your responses. I am still looking for lender/broker (not sure of the difference) I was told to go through wells fargo."
Wells will not provide a "true pre-approval". The link below explains why I prefer Mortgage Brokers/Bankers as both have multiple funding sources - an advantage you should seek.
"Banks vs. Brokers"
If you do not have a trusted referral, I would suggest you work with a Certified Mortgage Planning Specialist. Mortgage Broker/Bankers with this designation have been trained in financing, investment, and tax planning topics: http://www.cmpsinstitute.org/public/menu
While nearly all lenders today offer FHA mortgages... not all lenders offer CalHFA mortgages (not to be confused with CHDAP down payment assistance, because like I said it is not required to be used in conjunction with a CalHFA 1st mortgage) as there is a special training process that lenders & loan officers need to go through.
Wells Fargo offers both to my knowledge, so they would be a good place to speak with. Just make sure your loan officer doesn't sound like a puppet (big bank loan officers are often known to be less than candid, but that doesn't mean you can't find an All-Star loan officer at Wells Fargo). You want to speak with more than 1 loan officer though, so be prepared to meet with at least 3. Mason-Mcduffie Mortgage Corporation, Prospect Mortgage, and Guild Mortgage also are CalHFA approved and are in your area. You can find the list of LO's at http://www.calhfa.ca.gov/homeownership/leads/plo.pdf or search the database of approved lenders at http://www.calhfa.ca.gov/apps/approvedlenders/
Ron... I dont have a particular area I am looking for. I do you have 3 small children so of course a safe area is a must. Any recommendations would be apperciated. Thank You
With CalHFA you can get down payment assistance with California Homebuyer's Downpayment Assistance Program (CHDAP) or School Facility Fee Down Payment Assistance Program (SFF).
CHDAP is assistance up to 3% of the sales price - provided that you make a $1k/1% contribution from your own funds. So if you use CHDAP you'd have to put a down payment from your own funds of just $1,200 instead of the $4,200 mentioned above. CHDAP would cover 3% of the 3.5% down payment requirement that FHA has - your $1,200 would cover the remaining .5% + go towards your closing costs.
SFF doesn't require any contribution from you, but it's for newly constructed homes only and additional requirements apply.
You can read both handbooks (which are designed for lenders, but they carry a lot of information that the homebuyer should also be aware of) at http://www.calhfa.ca.gov/homeownership/programs/index.htm
In either situation (using the CalHFA programs or regular FHA programs) you can ask the seller to contribute towards your closing costs, called a "seller credit", which would reduce (and can completely pay for) the closing costs for the purchase.
So if you used the CHDAP down payment assistance, and ask the seller to pay all of your closing costs, you could technically get in a home by only having to put down $1,200.
You mention USDA financing not being available because the population is over 20k, and while pretty much the entire city of Los Banos isn't eligible, there are a few parts on the very edge of town which are.
You can view a map of which areas are/aren't eligible at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do as well as you can punch in a specific address to determine if it's eligible.
There's a right way and a wrong way to go about buying a home. You are asking some of the right questions. Many more need to be asked and answered. Your first step should be to sit down with a Mortgage Broker or Mortgage Banker to obtain a Pre-Approval (not a Pre-Qualification like the retail lenders provide).
If you do nothing else today, please review the following to understand what constitutes a true Pre-Approval and why it can save you from wasting about $1,000 on a cancelled transaction: http://www.Steven-Anthony.com/GettingStarted
If you are not sure where to obtain your Pre-Approval you can ask any of the RealtorsÂ® on this forum who they would recommend.
Hereâ€™s a few links regarding interest rates many have found useful:
If your going with FHA as stated you should be fine with that down. Typically your closing cost will run about 3.5% and your down payment is the same. Just be sure to have enough money left over to cover your inspections and Home Warrenty.
I am happy to answer any other questions you have.
Century 21 M & M