Home Buying in San Jose>Question Details

Vivi2634, Home Buyer in San Jose, CA

When buying in San Jose Ca... How much money is needed to put down to qualify for a home loan? Percent? Min Credit Score? After 2-years foreclosure?

Asked by Vivi2634, San Jose, CA Thu Jun 2, 2011

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Well that sounds like a pretty good program, figures it was limited to city participation and some other limitations applied, but if the city of San Jose is offering programs like that, I'm sure many other city's here in CA are too.
0 votes Thank Flag Link Thu Jun 2, 2011
Here's a link to a pdf document my preferred lender put together. It's entitled "Waiting Periods Required for Significant Derogatory Credit Events"
http://dl.dropbox.com/u/3675535/Landmark/FC-SS%20Waiting%20P…
1 vote Thank Flag Link Thu Jun 2, 2011
It's available for the city of San Jose only. County have other buyer programs but as everything there are guidelines. Also, funds are limited and city is involved in part of the qualification.
1 vote Thank Flag Link Thu Jun 2, 2011
If that is the only issue and since your wife has a current home that she is thinking of selling, and assuming there are no other issues, you will need a credit score of at least 680 and minimum of 10% down.
1 vote Thank Flag Link Thu Jun 2, 2011
I'd recommend you see what the San Jose city program is about that J Adame mentioned, it may not be a "regular loan" by some people's definition, but it can be just as good (if not better) than a regular loan. Compare the interest rate, loan term (fixed, adjustable, how long, balloon payment?, etc.), any monthly fees (like mortgage insurance), and the closing costs specific to that program. Other important items to consider (but are more of intangibles) are processing time/efficiency, communication, and if your personality meshes well with the person you are working with.

Important to note is you'd want to be aware of any mortgage revenue bonds that may be funding the program, as it could make you subject to a recapture tax (which isn't bad, but something one should be aware of because it can have implications), link on recapture tax info is in the web reference (.pdf document).
0 votes Thank Flag Link Thu Jun 2, 2011
Thanks for the information!
I think we want to put 10% down once her home is sold... and go with a regular loan...
0 votes Thank Flag Link Thu Jun 2, 2011
There are other price and maximum/minimum income limitations as well
0 votes Thank Flag Link Thu Jun 2, 2011
That is an interesting program, I will keep that in mind for people just out of 2 years foreclosure. Is it available all over California or just in San Jose/Santa Clara County? Are there income or sales price limitations?
0 votes Thank Flag Link Thu Jun 2, 2011
he provided more info about his wife. Since his wife already has a house he won't be able to qualify as first time home buyer. That's why I said that I'd need to meet with him and look at his financials but also gather more information.

Cheers
0 votes Thank Flag Link Thu Jun 2, 2011
J Adame - what happened to the 100% financing option you mentioned?
0 votes Thank Flag Link Thu Jun 2, 2011
So-I have a foreclosure on a property I cosigned with a family memeber.. they lost it when the economy went down... Now my wife has a home she wants to sell and buy a home with both of us on the loan... use the sale of the home to put down... we are not sure what is required to put down...percent? Credit scores required? will my foreclosure be a problem? Dont have nothing else and everything else is paid currrent.
0 votes Thank Flag Link Thu Jun 2, 2011
What was the cause of your foreclosure? Was it an extenuating circumstance? If so, and you have had 12 months of re-established credit, no new late payments/delinquent account since, then you could purchase with FHA financing just after 1 year (so 2 years would be OK)... however if it was due to financial mismanagement (basically anything other than extenuating circumstances) then FHA needs 3 years. FHA just requires 3.5% down payment, and you can get by with as low as a 500 score (anything less than 580 requires 10% down), however majority of lenders are looking for 620-640 credit scores. FHA measures the length of time from the foreclosure sale date.

If you are an eligible Veteran, then VA just requires 2 years from foreclosure in worst case scenario, and only 1 if it was due to extenuating circumstances.... VA is 100% financing/no mortgage insurance (typically the best "low down payment" loan if you are eligible for it).

Fannie Mae & Freddie Mac requirements are longer than that.

Same re-established credit requirement of 12 months applies to all situations where a prior foreclosure has happened. Late payments/delinquencies after a foreclosure are OK, but usually result in having to wait another 12-24 months after the most recent late payment/delinquent action.
0 votes Thank Flag Link Thu Jun 2, 2011
If foreclosure is the only item on your record and your have at least three more credit lines open, we have a program that could be possible for you to get up to 100% financing if it is to be owner occupied. We will need to meet for about 20 minutes and see your financials.
0 votes Thank Flag Link Thu Jun 2, 2011
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