Is there any reason why "Professional" real estate agents are not more "in tuned" to the amazing programs available to First Time Home Buyers? As a loan professional, I often wonder why agents who state they are out to help their buyers have no interest in these program. Most cities in the state of California have First Time Home Buyers Programs. I guess it is not really free money, but nearly free. Example today I went to the City of Carson's program. Out of all of the licensed real estate agents in and around Carson, California I was surprised to see only about 35 licensed agents? This program will give a qualified first time homebuyer up to $100,000! All the buyers have to do is take ONE 8 hour class, not have owned a home in the past 3 years and meat the income requirements, no bad for $100,000. This particular program places a lien against the home for the amount and only has to be paid paid if the homeowner refinances, sells or leases the property. What these programs do? These programs help your buyers qualify for more home! Example say a buyer wants to purchase a home for $325,000 and only qualifies for $300,000. With 3% of their own money and 25% from the City, their loan amount with the City financing is only $234,000 dropping their payment and making their new home more affordable. Let me make it really simple:
FHA vs. City First Time Homeowner Program
FHA 3.5% down payment - $11,375, actual loan amount with MIP =$319,113, payment =$1762.15 PI, Taxes =$338.54, Insurance $58 and MMI = $130.67 for a grand total of $2289.36 per month. FHA will allow ALL gift money, but also charges the MIP and the MMI. The buyers should have at least a 600 credit score and on a 30 yr loan today the rate ranges from 5% to 5.375. On the 5/1arm a buyer could get as low as 4.375%, yet must qualify at a higher indexed rate. FHA Is still a great program with or without any special programs!
Ok....lets see how the city Program helps this same buyer: 3% of their own money, no gift for the first 3%, 25% funds from the City ( the amount can be as low as 17% and up to $100,000) Say our buyers qualify for 25%. Their new loan could be a conventional loan with an amount of$234,000! No MMI! No MMI, today's current rate of 5.125% makes their new payment $1274.10, taxes $338.54 and Insurance $58 for a grand total of: $1670.64! That is a savings of over $618. per month. If you really want to help this buyer with the savings show them how if they pay an extra $200 per month on their loan since they have such a savings that they will save an additional $157,918 and pay off the first in 22 yrs! Cool stuff! So what are you waiting for? I can be reached at 866-844-6873. I look forward to help your homeowners with all their financing needs and your sellers with FAST short sales!!
Buyers and agnets call your Citys today. Carson, California will be having their 8 hour class this month! Google Carson, California or call me and I will help you with all your questions!