San Diego home buyers can qualify for the FHA ½% down payment program! If you're still thinking now isn’t a great time to buy, you're crazy! Its more affordable today than it has been in years! And I'm not the only one who thinks so! Look at what the Trump said just a few weeks ago! “This is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”
This program is designed to assist qualifying homebuyers with their down payment and/or closing costs by offering up to 99.5% financing to increase homeownership opportunities for low-to-moderate income individuals and families. There are of course requirements but nothing too strict, take a look:
- Home must be principal residence
- Borrower provides ½% of the purchase price for a down-payment.
- Minimum credit score of 580 (borrowers are under 620, additional restrictions apply and homebuyer education is also required.)
- 120% Area Median Income ( $90,600 in San Diego county)
This program isn’t only available to first-timers, it will help both first-time and move-up or second time home buyers more easily qualify for a home. This program only requires the borrower to put down ½% of the purchase price. Here are the highlights of this program:
- Not Limited to first time home buyers
- Minimum credit score of 580
- Purchase price up to $697,500
- Additional financing of 3% available to cover the down payment or closing costs. (info below)
- Gift funds allowed from family members
- No borrower reserves/assets required
As mentioned above, in addition to only requiring ½% down payment, the borrower can also borrow up to an additional 3% of the purchase price which can be used toward closing costs or the down payment. The borrowed funds are given as a 2nd mortgage, at 8.25% fixed interest rate on a 15 year loan, fully amortizing. The entire payment is lumped together, so the borrower only has to make one payment each month.
This is just one of the MANY programs out there designed to help new home buyers easily qualify for a home. Its time to take advantage of them! Click on the Orange and Grey buttons below to search for your new home!