Many buyers are sidelined right now. This is due to a number of factors. Uncertainty in the market, lack of inventory, etc.
Another reason according to the Center for Responsible Lending is that the average FHA buyer needing 3.5% down payment, may take up to six years to save their down payment.
With shadow inventory of over 3.7 million homes and more likely to come, we need to encourage as much demand for homeownership as quickly as we can.
FHA borrowers who buy within their means, even if they lack a down payment have overwhelmingly proven they will keep their homes and maintain their payments.
As the author of; Financial Sense To White Picket Fence; Budgeting, Borrowing, Buying & Beyond, I believe we have a large group of American citizens that can and must take advantage of today’s historic market or be left behind permanently. Financial Sense To White Picket Fence
With minorities scoring 20 points below the affordability index than whites and Asians, if they wait to try to buy when the market is fully recovered, rates will likely have gone up and when this happens, many of them, lacking a substantial increase in their household income or a co-borrower, will be locked out of the home buying market forever.
HELP’s Down Payment Assistance program for California buyers is our way as a housing advocacy group to promote education to buyers and teach them to buy within their means and set themselves up for a long term successful home buying experience.
Buy the book here: Published by California Community Colleges Real Estate Education Center
All one must do is watch our four one hour videos on our non-profit web site and preferably read the book; www.freehomeownershiphelp.org or go to the Department of Real Estate’s site at; http://dre.ca.gov/ and view the four one hour videos there under the Financial Literacy icon. Then, answer some simple questions and meet some simple guidelines meant to ensure one is NOT buying more than they can afford.
If a buyer were to do this, they will receive a 15 year fixed rate loan at 8.25% interest with no cost for the second of 3%. This means one can buy a $250,000 home with as little as $1,250 out of pocket and only an additional $74 additional payment for the no cost second.
THIS IS NOT RESTRICTED TO FIRST TIME BUYERS BUT IT IS RESTRICTED TO 120% OF THE HUD MEDIAN INCOME.
PRMG AND ESSEX MORTGAGE BANKERS ARE THE TWO COOPERATING MORTGAGE BANKS AND THEY DO ALLOW FOR OTHER LENDERS TO BROKER THE LOANS TO THEM.
Help us with our mission to educate consumers and guide them towards you, the professional who cares.