Borrower must be a First Time Homebuyer
Applicant(s) must be a First Time Homebuyer, defined as a purchaser who has not previously owned a home, condominium or mobile home, whether as sole owner, tenant-in-common, joint tenant or in other form of ownership within the past three (3) years. The City, at its discretion, may consider displaced persons or other hardship cases to be within this definition.
You will be required to proved three (3) years of tax returns to demonstrate that you have not had any mortgage interest deductions.
Second rule of BMR:Homebuyer Education Certificate
Homebuyer(s) must successfully complete a City approved BMR 8-hour Homebuyer Education Class prior to the close of escrow and must provide the City with evidence of completion.
Also, have you seen the conditions that the BMR notes stipulate? When you go to sell the property, you must sell it as a BMR. The city has the first right of refusal to buy property or allow your sale to move forward. You will limited as to how much profit you, personally, can make on the property.
Request a copy of all the loan documents that go along with a BMR. CAREFULLY review. You may find you do not want to get into this type of transaction. These are designed for buyers who intend to stay in the property for a long time (neighborhood integrity).
In order to qualify for a BMR as a first-time homebuyer, ALL household individuals must not have had any interest in real property within the last 3 years. Since you currently own your condo, you would not qualify under the BMR program. This also excludes your wife if you were to try to co-sign and have any interest in the BMR property. What is the price range in which you are looking to buy? I understand you do not want to pay too much for your next home but home values have increased so much that you may not realize that you have positive equity in your current condo that you could use to help purchase your next condo. If you are trying to buy a larger condo, the first step is to see how much you can afford and qualify for. I'd also like to discuss your situation because you may be able to afford a condo in the area without having to go BMR. Feel free to email me at Joraine@JoraineSellsHomes.com or call 650.622.1235 and I can put together a comparative market analysis to let you know the current value of your home as well as help you with your situation.
Joraine Costales, Realtor CalBRE#01848062
Usually, BMR programs are for first time buyers who do not own other property, and wish to live in the BMR unit.
What city are you thinking of buying your BMR unit in? San Bruno? You will need to go to the city offices that manage the BMR program (or their website) and see exactly what the requirements are in that city. I know that San Francisco requires that all prospective BMR unit occupants get pre-approved by a designated lender who will let you know what the parameters for approval are. If both of you, as a married couple will occupy the unit, then your combined income, and your credit scores will be reviewed against the minimum/ maximum income allowed per family for the unit. Also they will be looking into your "first time buyer" status. If you bought the condo a long, long time ago, or if one of the two of you is a first time buyer, perhaps the rules allow you to apply.
Most cities will require that you take a short course as a pre-requisite for a BMR purchase. The city of San Mateo requires that you sign up onto a waiting list and you must wait to get your turn as BMR units come along. It could take a long time. Let me know if u have any other questions!
Frances Boscacci, MBA
Associate Broker, BRE #01362031
8z Real Estate
330 Primrose Road, Suite 412
Burlingame, CA 94010
My wife never bought any property before; thus would she qualify for BMR. she doesn't have enough income so can i co-sign for her? that is my question.
Also, i am looking for BMR in SSF, San Mateo, San Francisco, any agent who can help me?
I believe you have to be a first time homebuyer and there are also income levels which you must be below in order to qualify.