How much do you need to buy a home and what about your credit??
Here is a question that I recieved the other day so I am sure that there are others with the same question.
Hey I had a few questions about buying a home. First off what kind of down payment is involved for a first time home buyer and what if your credit isn't all that great???
First I am going to start with the obvious and then do a little clarification that always seems to get some a little confused, on down payment and closing costs. So this will be part 1 of the answer to the question.
Most loans done today are FHA which is just short for Federal Housing Administration. FHA loans are govt. sponsored loans so that pretty much explains why they are so prominent since they are really the only one’s with any money to lend or maybe the only one’s willing to lend. Reality is banks themselves are being very skeptical as to who they lend money to. The other type of loans that are made for a home purchase are conventional which we won’t be going into that since it maybe too difficult to qualify in today’s market. So lets get started with some First Time Home Buyer Information and please keep in mind if you are in California I can help you get the financing for your home anywhere in the state of California. ;-).... you don't just have to buy a Santa Maria home for sale or a home on the Central Coast for me to be able to help you.
To do a FHA loan all you need CURRENTLY IS 3.5% down payment on a house. I want to make sure you caught that which is CURRENTLY. There is a lot of proposals and pressure to increase the down payment on a house to 5%. But those are just proposals but some changes are happening coming April. The minimum fico scores are being increased even though FHA will accept a 620 fico score most banks or investors that fund the loan will not do a loan under a 640. The other change is that PMI factor is being increased to 2.20. What this means is that PMI (principal mortgage insurance) that is being added on for you to get the loan will cost you more. To figure out what your PMI costs are is multiply the loan amount by the factor, for example $100k x 2.20 = $2,200.00 that will be added to your closing costs.
Please keep in mind that closing costs and your down payment are two separate things. I will go in to detail in a separate blog on the difference of a down payment and closing costs involved when buying a home. I will also address the question on what if your credit is not that great as well.
If you live in a rural area you can even still get 100% financing so NO MONEY DOWN and that leaves you with more money to pay for the closing costs and if the selling bank helps out even better. These loans are USDA loans. I know you think of the USDA when you buy meat but they lend too. But they are usually for rural areas here locally for example you cannot buy a Santa Maria home for sale with a USDA loan but you can buy a home for sale in Guadalupe or a home for sale in Nipomo with a USDA loan. There are some other aspects of the loan such as income caps and loan amounts these loans are more for lower and middle income not for your Mc Mansions. Go to the link below or clickon the USDA logo and type your location to see if it is eligible for 100% financing its pretty simple. All you gotta do is follow the directions does not matter where in the country you are in this link will help you find out if the program is available in your location. If you have any questions on this just shoot me a comment.
Hopefully this was useful and if you happen to be looking for any Santa Maria homes for sale or Central Coast homes for sale. Let me know if I can be service to you. But if you are out of my area I hope that this information was useful.
Remember I can help you get the financing you need for your home anywhere in the state of California
Please help me out in giving you the information that you may be interested. If there is a topic that you are curious about need more clarification let me know.
Thank you
If you want to search for any homes for sale in Santa Maria or the Central Coast you might want to buy just go to www.GenePerez.net. 
If you have any questions about this article or buying a Santa Maria home for sale or any properties on the Central Coast or need to get a loan in Santa Maria, CA or on the Central Coast as well as other real estate related questions please contact me by sending me an email at: GenePerez@GMSLoans.net
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better information please let me know. I have been helping my clients for the last 15 years on the Central Coast,
Gene Perez, Ph. 805.448.7101, Fax, 805.352.1109 - DRE 01321588
