Downtown San Jose has certain areas which have homes set aside for those programs as well. Some of these include down payment, closing cost assistance and silent second and third loans.
These BMR homes come with restrictions so when the time comes to sell they will restrict your net equity and and the buyer will need to fit into the BMR program as well.
Your next step is to meet with an agent and loan officer familiar with these programs.
As is often the case, Grace has given the best all around answer. To elaborate on her answer, let's assume you are not a veteran, where you could get a 0 down loan, and you will have between $30,000 and $40,000 in cash available upon the ale of your mobilehome.
FHA starts with a 3.5% down payment, but there are other programs that amount to 1% or even $500 down. But all these programs have a caveat, the down payment and the loan are both calculated on lesser of the sales price or the appraised value of the property, so if the appraisal comes in below the sales price, your down payment may be 1% of the appraised price PLUS the difference between the appraised price and the price you are actually buying it for. So let's assume you'll use a 3.5% or less down payment loan and use most of your cash for the difference between the appraised price and the price you purchase the home for. Let's also assume you use an agent smart enough to explain to the seller from whom you will buy that you have enough cash available, even though you are a first time buyer using a low down payment loan, to cover the difference between the sales price and the appraised price of the home. If that is not explained to the seller up front, the seller's agent will advise the seller to not accept your offer.
To qualify for these programs, your income has to be under a limit, which is very high in the San Francisco Bay area. Most people qualify.
The best loan officer I can think of for this sort of purchase is John Hanson, branch manager of Community West Mortgage in San Jose. Community West Mortgage is a branch of High Tech Lending, a direct lender which participates in virtually every first time home buyer program in the state of California. Mr. Hanson designed the original Superflex program in Santa Clara County Housing Trust, which is most likely the program under which your class was given. (Now Superflex is under another name,but the program is basically the same and you have competed a class that makes you eligible for it.) Mr. Hanson's phone number is 408-281-8383. His email is email@example.com.
I got my start in selling mobile homes in parks, having sold at least 90 of them. I would like to represent you in your sale and in your purchase. This should make the person from whom you buy comfortable because he or she will know that talking to me is talking also to the agent selling your home, so nothing gets lost in translation between three agent "telephone".
BTW: I have a buyer looking for a home in that price range. What is the space rent and how many bedrooms? The buyer can accept a long escrow, giving you time to find your home.
Life for you is about to get better!
Bill McCord brings up a good point. If you have claimed a mortgage interest deduction for your mobile home, but did not own the land (which is the case in your case), you will need to include an explanation in your application for the first time home buyer program. Most loan officers and underwriters will get the picture and allow the first time buyer program to succeed. They need to understand that the mortgage interest deduction was for Personal Property Loan, not an actual mortgage. This is one time where you can have your cake and eat it too. Again, talking to someone like John Hanson at Community West Mortgage, who know about this issue, would be very helpful. His number, again, is 408-281-8383.
To be frank, your best resource may be the same place where you took the class. Often First Time Home Buyer courses will also have information regarding loans and Realtors and resources where you can look to purchase a home.
I have to caution you, however, that right now, we have a severe shortage of homes for sale. So much so that even now, in what is usually a "slower" portion of the sales years, we still have plenty of people bidding on a single home and pricing on homes is escalating higher than many buyers can afford.
So if you're hoping for BMR or Below Market Rate housing, we just don't have much (or any) of that right now. Even new housing developments are not providing BMR units for sale anymore.
As for financing, try working with an FHA mortgage broker. You will still need between 3.5 and 5 percent of the sales price for a down payment. If you cannot afford this, then it's best to rent a home for a while, save up, and have enough money for a down later. Hopefully, this summer our market will change a little to open up more housing opportunities for home buyers like you!
Allison James Estates & Homes
There are also other financing options, and with the $30 or $40 k you have for a down payment, you may get a better loan program through conventional financing.
The next step is to choose a lender who works with these programs, and to choose a realtor who can assist with locating a property.
We have several options for you.
Eric Olfred Nelson III
Sr. Mortgage Planner
NMLS # 120412
CA Bureau of Real Estate # 01258488
I have a client that will be putting her BMR townhome up for sale soon. It will be listed below $400K.
I can also help you with the sale of your Mobile Home.
Let me know how else I may direct you.
Mitchell has correctly stated that most Mobile Homes loans will not disqualify you from most 1st time buyer programs. However, I've known several cases where someone has mistakenly claimed mortgage tax relief for a mobile home loan, and in that case would be disqualified from the best First Timer (The Housing Trust) programs as they want to see 3 years tax returns before qualifying.
In my opinion FHA has been so gutted by recent regulation regarding Mortgage Insurance that it must be viewed as a last resort option.
Actually a mobile home mortgage on a home where you do not own the land under it, which applies in your case, does not prohibit you from qualifying for first time home buyer programs. Mobile Homes in such cases are personal property so they don't count against the first time home buyer qualification.
FHA can combine with the county programs, as can Fannie Mae and Freddie Mac loans. Again, call John Hanson at 408-281-8383 and he can explain all these things in detail. He designed the original programs for the Housing Trust, called the Superflex loans.
If not then you might (depending on income) qualify for the Housing Trust programs for Santa Clara and Santa Mateo Counties. These are vastly better than FHA.
NOTE: The income limits vary with the size of your family i.e. minimum for single person then incrementally high for each additions person.
For more details contact me through TRULIA.
I would suggest you talk to a qualified Mortgage Lender who can look at ball available options. I have used Misty Leonard with Guild Mortgage (Direct Lender) for most of my first time home buyers. There are several loan programs that can be piggy backed to allow you to buy with low down payment (In some cases 0 down payment) plus get you funds to assist with closing costs. Here is Misty's information, should you decide to contact her.
18525 Sutter Blvd, Suite 140
Morgan Hill, CA 95037