I was sitting at an open house with a new referral partner on a beautiful Sunday afternoon, and a family of four came in, who were considering buying their first home all together. There was the Mom, her daughter and two sons. The youngest of them was the daughter who was in her early twenty’s, and was the one who had the idea of buying a home with her family, to begin building a future.
After my Referral Partner spoke with them for a bit, he then referred them to me so I could get a better understanding of their financial situation and begin formulating a strategy that might enable them to make the dream of home-ownership a reality.
We all sat down and I began to interview them; their mom worked for the city for over ten years and worked an average of six days a week for at least nine hours per day. The daughter and two sons also worked good jobs and making a good income, with overtime and bonuses.
Their combined annual income was quite substantial, yet when I inquired about their savings for a down payment, they had none, which as many know, limits the possibilities in what type of loan we might be able do.
This is such a comnon and unfortunate occurrence; Individuals and families who are hard workers, making a good income, yet have very little saved for the future.
I read a book entitled The Miracle Morning, by Hal Elrod, and it said, “according to the Social Security Administration, if you take 100 people at the start of their working career and follow them for the next 40 years until they reached the age of retirement, that only 1 will be wealthy; only 4 will be financially secure; 5 will continue working, not because they want to but because they have too; 36 will be dead; and 54 will be broke and dependent on friends, family, relatives and the government to take care of them." This is great book!
Monetarily speaking that’s only 5% who will be financially secure and 95% who will continue to struggle their entire lives.”
That’s a scary statistic, yet very accurate. Unfortunately most individuals have the tendency of spending most of what they earn and don’t prepare for the future. And if and when they decide, like this young lady, to purchase a home, they are not prepared for the cost involved of home ownership.
Fortunately there are some great down payment assistance programs, like the Cal HFA Plus FHA, which has a Zero Interest Program second, which is a deferred-payment junior loan up to 3.5% of the first mortgage, for down payment assistance.
This is a great program, and it can help a lot of people here in southern California, especially since the cost of living is rapidly rising, making it a contributing factor in saving up for a down payment.
I work with first time homebuyers and love to educate and inform individuals on the various programs available. In addition I do FHA, VA and Conforming and non con-forming loans.
*For Low and No Payment programs qualifying or other factors or restrictions may apply.
Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act