Yes, as others have noted their is the FHA program but as stated there are other issues raised when competing with other offers as many homes do in San Francisco.
Depending on where you are thinking of buying there are some 10% down options without the mortgage insurance (this is the additional premium paid for a higher risk loan) and consider this as upto 1% added to you interest rate. Donig the math, if you borrow $700 K and compare the extra money you will pay out for several years you would most likely better off going on a conventional loan.
Talk to a mortgage broker and get pre-approved to know your options that work best for your lending side, and then a Realtor to review your options and chances of sucess in the market you want to buy into.
Call if you need anything else,
If this is the case, by using $100K down, it sounds like you can purchase close to a $800,000 home.
Ask a friend, relative or coworker to refer you to a real estate agent or try picking one on Trulia and have that agent refer you to a mortgage professional.
If you need a referral, free to ask. Congrats on deciding to buy a home.
As at least one person noted below, while FHA loans will allow you to hang onto a lot of your cash, your monthly mortgage payment will be a lot higher - partly due to the higher loan amount, but also due to PMI which means your effectively interest rate will be a lot higher. To end the expensive PMI payments you usually have to pay off enough of the loan to make your Loan to Value ratio 80%. So you could be stuck with the high payment for a while.
There are plenty of neighborhoods with $750,000 single family homes, but obviously your options go up as your price range does. As most said below, speak with a lender and fully explain your situation and questions.
I highly recommend you talk with some lenders you can trust to get all your options. We work with three who are honorable, reputable, super responsive, and will give you the V.I.P. treatment if you mention our name. Drop me a line and I'll be happy to send - contact info is below.
Lance King/Owner-Managing Broker
If you both make 6 figures, it would not be advisable to go for a FHA 3.5% loan that caps
the loan limit at $729,500 and require a mortgage insurance. You will get a large and beautiful
home with the amenities and qualities you want while the market is great for buyers rather than limit
your loan to $729,500. With a 20% downpayment, you will be borrowing less and your monthly mortgage will be less. Just note that mortgage rates are already super, in some cases, below
4% so this is a great time to shop and buy.
(As a note, if you live in your home for at least 2 years, a married couple can for go a $500,000
capital gain tax when ready to sell). All the other realtors are sincere and correct - I just wanted to give you my personal opinion.)
Helen Yuen, Land & Property Investments, Inc. SF (415) 469-0577
Call or e-mail me for an appointment with a mortgage loan consultant in my office and/or for
a list of homes on the market in your price range at no cost.
I recommend you speak with a mortgage professional to discuss the various options that are available based on your individual finances and goals. In some instances it may be beneficial to put a considerable amount down for a better rate.
Here is a referral:
May Montana at Guarantee Mortgage
Some programs, outside of the FHA, have very different criteria and will work for some people but not for others.
The FHA lending sets max amounts based on zip codes with the top end set at $729,500 and they allow 3.5% down. You need to pay mortgage insurance and there are guarantee fees involved also.
Obviously you can call me if you'd like.
What you really need is a conversation with a good loan officer to help you decide which type of loan would be the best for you. After that, you'll be able to work with an agent to help you find a home in an area that makes sense for you. The markets you are talking about are really busy right now and sellers have the upper hand. After getting pre-approved for a loan, a good agent will be crucial in your efforts to find the right home. Contact me if you'd like some names to get you going on loan info or talk about how you can successfully find and purchase the right property. Best of luck-Matt
Barbagelata Real Estate
This will assist you in determining how much you need to contribute as a down payment as well as how much money you will need to reserve for closing costs.
As for where and what you'll wind up buying, take it slow, prices are fairly stable presently, and banks not as flexible with certain lending requirements, but you're in a very good position. I said something similar to an investor not too long ago, "you have the money," and sellers abound, so don't jump on the first house that "seems" to meet most of your conditions, but do move quickly and prepared on the one that is your top choice, because like you, there are many people looking to buy -- some with ALL CASH!
Talk first with a lender who can evaluate your circumstance(s) without committing with anyone until you're certain that the persons with whom you're dealing are a good match -- almost like finding a "soul-mate," you go through some experiences before you find the right one (maybe). Afterwards, or even in conjunction with that process, you're going to meet up with real estate agents -- many who are as capable as the next fellow, but, just like the other advice, take time to do a little homework, and/or talk enough to determine whether there's a good match or not.
Hope that gives you something to work with... Good luck.
I much agree with the brokers advice below: a higher then 10% down-payment will make your offer more attractive in a competitive market. As to the mortgage source, we all work with respected mortgage brokers. If help is need, please contact me directly @ 415-722-6249 / firstname.lastname@example.org
If for some reason you don't have an accountant, I know a few good ones who would be more than than happy to help.
Oggi Kashi's iPhone
Paragon Real Estate Group
415 . 690 . 3792 - M
415 . 874 . 5020 - O
I'd be happy to help you!
So many things to talk about-please contact me Ellie@ClimbSF.com
Let's meet in person and I'd be glad to invite our in-home mortgage advisor to join us.
Look forward to meeting with you soon.
Climb Real Estate Group