the other two are rental properties that I have worked very hard to restore for the purpose of taking out an equity line of credit .
The purpose of which was helping my children purchase a first home, and using the heloc to gift them a down payment.
I'm running into questions as to whether or not the heloc is ok to sorse the down, if I co sign for them in support.
Your advise would be appreciated and options welcome. I want to make this work for my Kids.
DRE # 00622625
Specific ideas to explore further include:
1) Private mortgage insurance for loans up to $625,500 here in Marin with at least 10% down payment.
2) FHA loans which require just 3.5% down payment for loans up to $729,750. FHA will allow for 100% gift funds for the minimum down payment too but please make sure to review all the mortgage insurance options too when looking at this option to make sure its the best route for you and your situation.
3) Gift funds from close relations. Typically, you would need to bring 5% of your own funds into the purchase transaction. Papertrail of these funds from the giftor is important.
Good luck on your search. RPM Mortgage is a local lender with an office here in Mill Valley. I would be happy to speak with you to discuss your situation in more detail.
Real Estate Financing
RPM | MORTGAGE
1058 Redwood Hwy., Frontage Road
Mill Valley, CA 94941
License # 01484550
NMLS # 297727
Top 2% of Agents in Marin County
Pacific Union International
1. Direct Lender: Michael Belfour - he has great rates - American Pacific Mortgage (direct lender) 415-524-8285
2. Bank : Joe Jacobs at Chase in San Rafael - 415-499-1340
3. Mortgage Broker: Jennifer Marshal First Capital Group , 415-440-5626
if you want to talk mill valley, give me a call
Kathleen Diringer 415-793-3040
FHA financing just requires a 3.5% down payment (there is also some down payment assistance options which can provide you with 3% to reduce your down payment to just .5%, but if you have the full 3.5% yourself then there are many more options). FHA financing goes up to a $729,750 loan amount in Mill Valley (Marin County).
VA financing doesn't require any down payment up to a $987,500 loan amount (Marin County), but you have to be an eligible Veteran.
Conventional financing can be done with 3% down (680 credit scores) up to a $417k loan amount, or over $417k (up to $625,500) then 10% down is needed.
USDA financing (for rural areas) is 100% financing but Mill Valley isn't in an eligible area (very, very outsquirts you may be able to find some homes).
Majority of my clients are first time homebuyers, so feel free to contact me with further questions (or ask them here) and I'll be happy to help.
Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct