FrustratedIn…, Home Buyer in San Jose, CA

Mortgage Frustration :)

Asked by FrustratedInSouthBay, San Jose, CA Thu Mar 13, 2014

My gf and I just moved to the San Jose area from Colorado and are running into a bit of a problem with finding financing in the area. I have a couple pre-qual letters from different lenders in the area that puts me in the price range for a condo or townhome in the Santa Clara area (sub 500k range). FHA seems to be our only option because of our down payment. However, in this area it does not appear that a lot of sellers want to work with FHA buyers right now. We've been looking for about two months now and are starting to think that renting is our only option. We did find a lender that would do a 0% down payment 20 80 loan product, but only for a single family home. Is FHA our only option for this area since we are not first time home buyers? Maybe something without mortgage insurance that allows for condo/townhome purchases?

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Bill Mccord, Agent, San Jose, CA
Thu Mar 13, 2014
I suspect you are a perfect candidate for the Santa Clara County 1st time buyer program. If so you should not be involved with FHA or any other program that requires the ridiculously expensive Mortgage Insurance, and would therefore also qualify fo a higher purchase price.. Give me 5 minutes on the phone and we will know if this option will work for you.
(408) 314-5861.
p.s. A 1st time buyer is someone who has never owned property in Santa Clara County.
0 votes
, ,
Thu Mar 13, 2014
We offer conventional financing with a 5% down payment with at least a 620 middle credit score. That should open more doors for you with sellers in that area. You would also have the option to pay the mortgage insurance upfront, split or have lender paid mortgage insurance.

Let's discuss your loan scenario in more detail. Contact me at 800 315 8803. My name is Bart and I have been offering loans since 1987. I am happy to answer your mortgage questions, 7 days a week and review your loan scenario. Until then, I look forward to hearing from you.

Bart Gabe - Lending Nationwide Since 1987

800 315 8803
0 votes
Sally Grenier, Agent, Boulder, CO
Thu Mar 13, 2014
First things first: Are you working with a REALTOR? Condos that will go FHA are a bit harder to find, but not impossible. Most town homes should be eligible for FHA. How do you know that these properties won't go FHA? Is the Realtor telling you this, or are you just seeing FHA isn't an option in the listing? Listings aren't always accurate. Even in the MLS, I see many listings that will only say "cash or conventional" but when you ask the listing agent, they say "oh yeah, it qualifies for FHA".

Second -- you HAVE to have mortgage insurance if you're putting anything less than 20% down. So...that's really not an option.

Finally -- when you say "pre-qual" letters -- did you just talk to people over the phone, or did you actually submit documentation -- such as paystubs, tax returns, etc. Almost anyone will give you a prequal over the phone. You need to get PRE-APPROVED.

I'd be happy to refer you to a lender. (I have one who's licensed for both CO and CA).

0 votes
Hi Sally,

I went through the whole process, paystubs to first-born with two lenders so far and I do have a realtor that has been helping me with the search. He has been calling the listing agents for the properties to see if each one qualifies for FHA.
Flag Thu Mar 13, 2014
Brandi Pharr, , Pleasanton, CA
Thu Mar 13, 2014
San Jose is a competitive market. Your credit score must be at at least 760 to even compete.
0 votes
Thank you for the reply Brandi.

My three scores range from 741-761.
Flag Thu Mar 13, 2014
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