Brittanyluce…, Home Buyer in

My husband and I are first time home buyers, hoping to figure out what it would take to qualify and what sort of down payment is needed. Thanks!

Asked by Brittanylucero11, Tue Sep 4, 2012

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As first time homebuyers, FHA loans are an option.. Fha is nice as you can get in for as little as 3.5% down. Combine that with some of the city down payment assistance programs and you may be able to buy for no money down.

As for this condo complex and many others , most complexes in san jose are not approved for FHA financing which puts you in the boat of having to do conventional financing where the minumum down is 5%

I can connect you with a first time homebuyer lending specialist who can outline all the details and what programs you qualify for.

Would you like me to put you in touch with them?

All the Best

Brett Jennings
Broker Associate
2 votes Thank Flag Link Tue Sep 4, 2012
Start with a reputable lender – meet with them and they will go over everything you need to get pre-approved. Once you know what your loan options are, find a good local Realtor who will then show you what homes are available in your price range and will work with your financing options.
0 votes Thank Flag Link Thu Sep 6, 2012
Hi Brittany this home is already pending a sale. It is best to align yourself with a lender who can run your credit report, verify your income vs. debt ratio, etc. There is quite a bit involved but in this highly competitive market, you really need to have your financing in order BEFORE you go shopping. Here's a partial list of what a lender will need from you (so start digging now :) ....
~ Permission to run your credit report.
~ Employer pay stubs for the last 2 months.
~ Employers list, W2's and tax returns for the last 2 years.
~ Bank Statements, 401k, stocks, bonds and/or any investment and asset account statements for previous 2-3 months.
~ List of other assets such as vehicles that are paid in full.
~ Verification of the source of your purchase good faith deposit and down payment funds.
~ If you are self-employed, Profit & Loss statements (IRS Schedule C) and tax returns for current and previous 2 years.
If you need a referral for a lender and/or would like me to email you some active listings, please contact me through my Trulia profile. Kind regards.
0 votes Thank Flag Link Wed Sep 5, 2012
Hello Brittany,

There are several options available to you. Two most common options are purchasing a home with 20% down and a conventional loan or FHA loan with as little as 3.5% down. There other option in between these scenarios also.

Depending on your income (for both of you) and areas that you may be interested in, there are additional programs available. You can use DAP (Down payment assistance programs). These are normally very low cost loans from cities and counties. There are also programs to assist you with your closing costs. Then there is MCC which has an effect of reducing your tax liability, allowing you to purchase a bit more. ( I am not an accountant- please consult an accountant and the MCC program for actual Tax ramifications)

All of these additional programs have constraints and requirements (Income level, where you can buy etc). I would strongly recommend talking to a Mortgage Lender who can review your situation and then advise you of programs that you may qualify for. If you are interested in these additional programs, then it is imperative you talk to someone who is very knowledgeable about these programs.

There are numerous lenders out there to choose from. I would highly recommend Misty Leonard w/ Wells Fargo. Her information is listed below should you need it.

Misty Leonard

Mortgage Consultant
NMLSR ID 439727

Wells Fargo Home Mortgage | 15105 Concord Circle | Morgan Hill, CA 95037
MAC A0504-022
Tel (408) 776-2490 | Cell (408)-802-5533 | Fax (866)-673-6819
0 votes Thank Flag Link Tue Sep 4, 2012
Thank you for your question:

If the complex is FHA approved you can get in with as little as 3 and 1/2% down

If the complex is not FHA approved depending on your credit qualifications you may be able to get conventional financing with as little as 5% down.

However the credit qualifications for 5% down conventional financing are rather tight and rather complex.

For more information you may contact me at my cell phone: (408)509-6218

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American realty
Cell Phone: (408)509-6218
Fax: (408)260-3597
Email Address:
0 votes Thank Flag Link Tue Sep 4, 2012
Hi Brittany,

There are more options than just 20% down. There are 5% down options with Lender/Borrower paid mortgage insurance. I am not sure if these Condo's are FHA approved...if so, that is another option for you.

I recommend you get in touch with a Mortgage professional that will take the time to explain each option available. If you are a serious buyer, I can send you a quick spreadsheet with 2-3 low down payment choices. I would need to properly qualify you. This means credit, income and asset will be verified.

Let me know if you have any questions!

Ivan Diaz
Home Mortgage Consultant
(415) 271-7740 direct
0 votes Thank Flag Link Tue Sep 4, 2012
Before you submit your offer it is always advisable to get a pre-approval. Most listings agents will not accept an offer without a pre-approval!!

Please find some time to fill up the form below and I would take care of the rest.

NMLS 327086…
0 votes Thank Flag Link Tue Sep 4, 2012
On $200,000 a $40,000 down payment would be normal with a $160,000 loan (80%). The payment would be around $750 plus HOA if applicable (homeowners association); about $200/mo in property taxes and about $600/year in insurance.

It's a great idea to get a major bank loan approval in writing (Wells Fargo, Bank of America) and you can still shop lenders when the time comes. But getting major bank approval will help you a lot.

Good luck!
0 votes Thank Flag Link Tue Sep 4, 2012
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