it ani't gonna get any better. Inrerest rate is down again because of fanny and freddie takeover
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I recently closed a transaction for a disabled buyer who purchased a free standing home in Torrance, layered three different down payment assistance programs plus a special subsidized interest first mortgage (4%), and came in with a PITI under $1,900 per month. It CAN be done - Good luck to you!
Another option I'm working on with a buyer is buying a house that is being foreclosed using "subject-to" financing. Essentially, it means taking over someone's existing payments on their loan, rather than getting one of your own. You would need a little bit of a lump sum to help the homeowner get current on their payments, but it could be less than the 3% for the FHA in many cases. There is more risk associated with this approach, but you're asking for your options, and this is a legitimate one. If you're interested in doing this, you should work with with an agent, because if you don't do it right, you could end up being foreclosed on yourself. But people use this approach every day, especially in LA County. If you want more information, you can search "subject-to financing" on a search engine.
I'd be glad to help however I can if you want to pursue something like this. I'm located in Pasadena.
Keller Williams Realty
I got an REO in escrow and they used Chfa. I think it was 1% down.How about VA? Also, call the city you want to buy a house in and see if they have community development funds.
FHA just came up with buyer assistance program where sellers are participants by "gifting" the buyers up to 7%. Also, ChFA's programs are pretty affordable. E-mail me should you have any questions on these programs.
The Nehemiah is a great program.
Why do you want to buy an REO or Short Sale??? Short Sales are extremely difficult & as a buyer you have even less negotiating power than an REO, which is much less than you have with a traditional sale. You're right that a bank or an upside down seller will not help with your financing.
It is true that the number of REOs on the market have pulled down pricing. Traditional sellers have to compete with REOs so there price is often the same as REOs - sometimes less, sometimes more. The old belief that you were always getting a deal when purchasing an REO just isn't true anymore.
Why don't you find a reputable Realtor in your area?