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Marie, Other/Just Looking in Southern Oaks, Baker...

How much harder is it to buy a home today since all the bad loans? Do I need more money to put down on a?

Asked by Marie, Southern Oaks, Bakersfield, CA Sun Jul 20, 2008

home, I see most homes require 20% down. I'm in the LA area and not sure yet which area to buy into.

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It is harder, in terms of qualifying for the loan. Mortage companies are now very strict about must have full documentation to prove your income, usually two years of tax returns, plus a stable income.
FHA loans will allow you a smaller down payment (5%) IF you have a good FICO score and good credit.
0 votes Thank Flag Link Mon Jul 21, 2008
Hi Marie,

The better credit score you have, the better the loan you get. There are also programs for 1st time buyers where you may qualify for grants to assist you with the down payment. FHA is another way to go with 3% down. Once you decide to proceed, an informed agent can assist you with all your options.
For more details, you can contact me locally at 818.487-4475.

Yona Bello
Web Reference:
0 votes Thank Flag Link Mon Jul 21, 2008
It is not the home that you want to buy that requires a down payment, it is the Lender that is going to give You the loan that determines how much down payment they require of you. There are many government programs and private ones as well that can help you purchase a home.

Please feel free to visit my website and search the MLS free, or you can email me and I can set up listings emailed to you on a daily or weekly basis.

Selling or buying an REO/Bank Owned property, please visit my website:
0 votes Thank Flag Link Sun Jul 20, 2008
The main difference is many of the alternative documentation loans have disappeared and you need to provide full documentation of income to qualify now.
Web Reference:
0 votes Thank Flag Link Sun Jul 20, 2008
Since I am a certified dowpayment assistance specialist, I can help you find a home with no downpayment or closing cost regardless of your income. Please call me if I can help 951-294-4426 anytime.
0 votes Thank Flag Link Sun Jul 20, 2008
3% of your own funds on an FHA is the best way to go for those who do not have that big down payment, if you qualify. However you finance, I strongly suggest straight and fixed. Keeping your credit score as high as possible, your debt ratio low or as reasonable as possible is very important. You need a good Realtor and you need a prequalification from a lender who's willing to consider FHA, if that's best for you. Remember depending on certain factors (like your credit score), the lender may require more than 3%. Hire a good team to help you.
0 votes Thank Flag Link Sun Jul 20, 2008
Hello Marie, Yes, FHA is a good way to go for a 3% down, there are also some local programs that, if you meet their guidelines, may be a source of down payment assistance, Some 5% down programs are advertised, but I don't know how good their rates are. Your FICO score is very significant for "conventional" loans, and 10% down is the basis for most of them. It's not impossible to pay less than 20% down, you just need to take the time to get preapproved. You may be in a different area of Los Angeles, but if you're considering the Long Beach/South Bay area, please contact me.
Julia Huntsman, 562-896-2609
0 votes Thank Flag Link Sun Jul 20, 2008

It is not as difficult as you may have been led to believe. You can still put as little as 3% down on a home and even get that 3% as a seller paid down payment assistance for an FHA loan. Mortgages are still pretty clear cut if you are buying your primary home and are fully stating your income. Your credit still has to be good, but it doesn't have to be pristine.
If you have any questions about pre-qualifying for a mortgage, please do not hesitate to contact me. I can originate in all 50 states, including FHA because I work directly for a mortgage bank.

Luke Allison
Flagstar Bank
0 votes Thank Flag Link Sun Jul 20, 2008
I am an agent in the Buffalo NY area. We have actually had a slight increase in values when many other markets are showing a decrease. Having some money when you finance a home is good but many times not necessary. If you have strong credit you can still get a good rate on a mortgage. The key is to get pre approved before making an offer.
0 votes Thank Flag Link Sun Jul 20, 2008
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