Contra Costa County First Time Home Buyers Assistance
I work with a lot of Contra Costa First Time Home buyers especially in East Contra Costa County Communities of Brentwood, Oakley, Antioch, Discovery Bay, Pittsburg and Bay Point.
First time Homebuyers in Contra Costa County are need of Assistance and that program may be here. One problem faced by First Time Home buyers in Contra Costa County is the lack of properties to purchase. Most First Time Home Buyers are coming in the FHA loans with a down payment of 3.5% and having to ask for a credit pay for closing cost.
This is fine and a good way to buy a house but you run into a number of major problems:
- Many homes do not qualify for FHA Financing or the seller will not take FHA Financing.
- On well priced decent homes that will qualify for FHA Financing there are often dozens of offers to compete with.
- FHA will only finance to 96.5% of the appraised value of the home.
- Currently the Appraisers are very conservative and due to changes in Appraisal rules and regulations we are often getting inexperienced appraisers from out of the area. Lender and Real Estate Agent Communication with these appraisers is limited and restricted. There may have been loose appraisals in the past, but now it has gone too far the other direction.
- You have to bid high to get the property, but if you bid too high it may very well not appraise and you will be out at a minimum the appraisal fees. Remember any amounts you are asking for Closing Cost Credits will have to be applied to total loan to value, so in theory you are asking the seller to give you this money.
- There are plenty of other buyers not asking for closing cost that will allow the seller to get 100% (or more) of what the property appraises for.
- Many buyers are coming in all cash or with substantial down payments that will allow them to pay more than what ever the property appraises for. (The irony here is once the sale is complete an identical home might well now appraiser for this amount as the house just sold is now a comp).
As you can see as an FHA first time buyer with only enough money in the bank for the down payment you have a problem to overcome. I am not going to sugar coat things. IT IS HARD. But there is one new program in California that might help:
The California Homebuyers Fund (CHF)
What this can do is loan you 3% to help pay for closing cost or down payment and free up more cash and borrowing room to get the home you want.
If you want to get in touch with a lender that can help you with a California Homebuyers Fund loan or get some other ideas about how to get your first home let me know.
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