Home Buying in Folsom>Question Details

Jaclyn, Home Buyer in Livermore, CA

Between My Fiance and I, we make about 50k a year, and have been looking to buy in Folsom, CA.

Asked by Jaclyn, Livermore, CA Sat May 10, 2008

We could comfortably afford $1,500 monthly. Does anyone have any suggestions in Loan Companies to go through for First Time Home Buyers. We are looking for Zero Down and the lowest possible Mortgage Payment, but we still want a home in the price range of 280k - 350k. Is this possible for us?

Thanks!

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I commend you for choosing a payment that you can afford instead of what you can qualify for. It is so important that as a First Time Home Buyer you stick within your budget. It is tough though when you are dealing with a budget. Often times I find our clients will go out and look at homes that are not in their price range. This is like test driving the BMW then getting stuck with the VW Bug. There is nothing wrong with the VW Bug but it is certainly not the BMW. Trust me.... get prequalified by a mortgage professional that is approved to do FHA loans. It is a great way to go for someone who may not have much money to put down and may not have established credit history. My first home was more like a Yugo... But I was able to move in with only about 3% down and if it were not for the FHA program I would have never owned my first home at the age of 20. I agree with earlier posts... sometimes when you are dealing with a budget you have to get creative and look outside the box. Ask yourself or leverage a Realtor ...Where can I go nearby to my target area and get more for my money! Good Luck! Give us a cal if you have any more questions about establishing a home purchasing plan and budget. We would be happy to help! Good luck!
1 vote Thank Flag Link Tue May 13, 2008
Sorry to be the bearer of bad news but any way I calculate it, $1,500 a month will only get you about $200k of home. Unless you are going to do some weird interest only or adjustable rate mortgage which I don't think are good options.

And Folsom is not a cheap area and you will be hard pressed to find a decent property for that much. I would suggest looking in Orangevale in the range of 175-200k.

Since everyone else is pimping out their loan office I will to: Dan Tharp - Vitek Mortage @ (530) 753-7644 Ext 305. He's awesome, and this is coming from a buyer, not a real estate agent.
1 vote Thank Flag Link Sun May 11, 2008
Jaclyn,

It sounds to me like your ratios might be pushing it just a little-even if you have no debt whatsoever. The best thing to do would be to talk to a mortgage professional to figure out the maximum amount of house you will qualify for . Alot of the 100%, interest only, option arm products have gone away with the subprime mortgage meltdown. I would talk to a loan officer, If not a couple, to find out what the maximum amount is that you will qualify for. I would be more than happy to answer any questions for you over the phone or e-mail. Good Luck with everything!!!

Brent Bester
Senior Loan Officer
(614) 622-8916
bbester21@hotmail.com
1 vote Thank Flag Link Sat May 10, 2008
Zero down does not exist any longer. You will be hard-pressed to find any lender that will finance 100%. Sounds like FHA would be a good choice, but you still need 2.25% down payment. If you have NO money to put down, then start saving OR - look outside the box. Think outside yourselves and look at your options. There's a whole world out there - what else can you do to increase your monthly income? I mean, not for nothing, but you might be surprised at what you find within yourself. Why limit yourself to that $1500 bucks? You're saying you can't go out and find a way to make more money - alot more money?

Ask yourself this - IF there are people out there making over $250,000 a year/a month/a day, what's stopping me from doing the same?
Web Reference: http://www.noobdogs.com
0 votes Thank Flag Link Fri May 23, 2008
Jaclyn - unless you and your fiance have virtually no installment or revolving debt (credit cards or auto loans), a $1500/mo payment will be a stretch for you using traditional debt to income ratios. You say you want the lowest monthly payments, but this only comes when you have a sizable down payment. And currently 100% isn't being offered, so you'll need to come up with roughly 3% down for an FHA loan, which can be gifted funds.....

If you and your fiance really want to live in Folsom, you'll either have to settle for looking at older homes in the shady areas, or consider buying a condo. $200k won't go very far in Folsom, but it will allow you to purchase in many other areas......if you want to make an offer from a position of strength, get (or save) your down payment AND have another $5000 available for a combination of closing costs/reserves.......I'm working with approximately a dozen borrowers who are credit approved, but are getting out bid when making offers because they don't have the down payment that sellers are looking for these days. Though it's a buyers market, attractively priced homes in the low $200k range are getting multiple offers these days!

Good luck and let me know if I can be of more assistance to you!

Jeff Marr
Stanford Mortgage
917-947-1312
0 votes Thank Flag Link Thu May 22, 2008
well if you have nothing to put down - what are your credit scores? Additionally - you're saying that you make a combined income of 50k a year? Is that after taxes?
Web Reference: http://www.tommcgiveron.com
0 votes Thank Flag Link Sat May 10, 2008
Hey Jacklyn: I like the way that Chris Carter with Mortgage & Investment Consultants works with first-time homebuyers. He can be reached at 916-616-0020 or 530-676-6070.

I hope it works out for you to buy now. However, if it does not and you want to stop wasting your rent money, call me. I specialize in Rent-to-Own if you can't afford to buy right now but are willing to work to get your credit in a position to get ready to buy all the while not wasting your complete rent and building a down payment. I'd love to help you even if it is possible for you to buy now.

Erin Phillips
Keller Williams Realty
Roseville, CA
916-580-2227
Web Reference: http://SoldByErin.net
0 votes Thank Flag Link Sat May 10, 2008
I think your best option is to definitely to speak with a lender regarding your situation. I have an excellent one I would be more than happy to refer you to. There are some fantastic buys out there right now and I would be happy to help you any way I can. There may be some options out there for you. Please contact me at the number below and I would be happy to help any way I can.

Jillian Anderson
Keller Williams Realty
916-241-8039
jilliananderson@kw.com
0 votes Thank Flag Link Sat May 10, 2008
Hi Jaclyn,

I agree with Brent...definitely speak with a good loan officer. I highly recommend Marlena Olson with the Vitek Mortgage Group at 916-486-6900 or molson@teamvitek.com. She is very well versed in grant programs, special financing options for first time buyers, and downpayment assistance, etc. Good luck to you as you begin your search.
Web Reference: http://www.erinattardi.com
0 votes Thank Flag Link Sat May 10, 2008
Erin Stumpf…, Real Estate Pro in Sacramento, CA
MVP'08
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