Home Buying in Marin County>Question Details

Elliott, Home Buyer in San Rafael, CA

2nd time buying a home, great credit, newly married, FHA possible?

Asked by Elliott, San Rafael, CA Fri Nov 23, 2012

We own a home in another state, which is rented out. We are now looking to buy a 3br home in a nice neighborhood in the 400k range, but do not currently have 20% liquid to put down (10% would be possible). We both work in the city so the closer the better. What I'm really interested in is: will we be able to find a nice single family home in that price range and would we qualify for an FHA or other loan that doesn't require a full 20% down? If so we are ready to start shopping!

Help the community by answering this question:


Conventional financing is available with as little as 3% down, however I recommend at least 5% down as the interest rates are a little better and the rate for your mortgage insurance is significantly lower as well. FHA is also an option and only requires a 3.5% down payment, and could make more sense if your credit scores are low or if your debt to income ratio is real high. There is also a loan program called USDA Rural Development which doesn't require any down payment, but the areas that you are allowed to purchase in are limited to rural areas/towns. Depending on the situation with your other home (how long you've rented it out for, how recently you've lived in it), you may be able to include it's rental income to help you qualify for the new home purchase as well. If you don't have your financing lined up, and would like to discuss, I'd be happy to help.

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote Thank Flag Link Sat Nov 24, 2012
Hi Elliot,

You maybe be able to qualify with as little as 3.5% down. The best thing is to sit down with a mortgage professional to find out exactly what price range you may qualify for. Intrest rates are at a 70 year low which is allowing you to have a higher purchase price. Call me and I will give you the name of a great lender and I will get you approved to shop right away. I will find you a great home.

Warm regards,

Miguel A Paredes III
Direct 415-233-3235
Office 415-899-9228
Email mparedes@fhallen.com
0 votes Thank Flag Link Fri Nov 23, 2012

Most single family homes qualify for FHA provided that they are on decent condition. The price range may be a bit of a challenge..especially if you are in the low $400,000 range. There may be a few homes in San Rafael, but most of your choices will be in Novato.

We can recommend a mortgage broker to talk to in order to get a better idea of your maximum price range.

Let us know if we can be of any assistance.

Mary Kay and Kathy
0 votes Thank Flag Link Fri Nov 23, 2012
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