Homeownership Education – On-line & On-Demand

With a 640 credit score you are certainly eligible for FHA financing on the first mortgage – That’s the first step. The CHDAP program from the California Housing Finance agency does require a minimum 680 AND 3% of your own funds so I don’t think that’s a good option. Are you a member of CalPERS? Have you checked your City or County for down payment assistance programs?

If you would like some help on that, send me an email at ScottS@broadviewmortgagecorp.com and let’s start looking into this further. We are going to have to get you qualified for the first mortgage first, then we can look at down payment options.

Hi Wei,

CalPERS offers some great homebuyer benefits to it’s members. These benefits include down payment assistance programs and maximum lender fees of $350! I have a lot of information on this site and in the Video Library. If you would like to take a look at some of these options, email me with the best time and number to reach you.

My email is ScottS@BroadviewMortgageCorp.com

Hi ALS,

In order to qualify for a home loan to purchase a new home after foreclosure is just a matter of time. FHA requires that 3 years pass before you can qualify, conventional loans (Fannie Mae) requires 5 years pass from your last foreclosure. I am sorry that I don’t have a better answer than that. As the challenges in the economy and the housing markets have affected many homeowners, the guidelines have actually become more strict for those looking to own again after being caught up in this mess.

Hi Daniel,

We are a direct lender and work with folks all over the State of California. If you would like a Loan Officer to come to you, that’s definitely possible. Our office is located in Orange, CA. I am not comfortable referring you to anyone else because we encounter so many challenges with buyer’s being misled or misinformed by loan officers that “say” they understand the loan but have no extensive experience actually doing them.

CalSTRS requires that a minimum 1% of the down payment come from your own funds, the other 2% can come as a gift from a relative. CalSTRS does not allow any down payment assistance programs if it includes a lien against the property.

Are you a member of CalPERS by any chance? That program offers down payment assistance.

If you would like to speak with a CalSTRS specialist, you can either Chat Live, here on the right side of the site, or email me the best time and number to reach you and we can go from there. My email is ScottS@BroadviewMortgageCorp.com

Hi Xochitl,

I will schedule a couple of dates for the first time buyer seminar in December. If you do not receive my Homebuyer Education Updates email, you’ll want to sign up – just click on the Start Here button on the website or go to http://www.CalPETR.com and wait about 5 seconds for the sign up window to pop up.

How exciting that you’re ready to get started on the process! Congratulations! If you would like to begin by getting approved for a home loan (which you will find is the first step) shoot me an email with the best time and number to reach you and let’s get that part started – you can email me at ScottS@BroadviewMortgageCorp.com

Talk to you soon!

Jason,

This is a good question. I have had the experience that builders are mostly just concerned that you are approved for financing, especially if the home is not yet complete. I’ve encountered this numerous times where a builder has a “preferred” lender and offers either incentives or discounts in regards to upgrades if you use their lender. I have also seen where a builder will subsidize your closing costs only if you use their lender. The problem is, who’s going to prosecute something like this? With all of the fraud and greed that has run rampant in the Real Estate industry, this concern has never really received any attention at all as far as I’ve seen.

My recommendation is that you speak with the builders lender, then speak with your lender. Once you have all of the information you need to make an informed decision as to what path is most beneficial for you, speak to the builder. We have on multiple occasions communicated with builders to ensure them that your financing is secured at which point they have been more cooperative in regards to incentives.

I would do that as a lender, I would think that your Agent would do that for you as well. A purchase contract is nothing more than a negotiation process and each party is trying to cover their own butt! If a lender is incurring costs on the building of a home based on your loan “approval”, it makes sense that they would want to have a high degree of confidence that your approval is indeed accurate.

I hope that makes sense. Let me know if there is anything I can do to help with this situation. Technically, the builder may not be violating any RESPA laws, you always have the choice to not work with that builder….but I know exactly how you’re feeling. Talk to them, these things can be negotiated.

Hi Maria,
Keep in mind that any credit issues are always temporary. It is my experience that most bad credit is the result of not knowing how to build good credit. I have your email, I will have a loan specialist send you their contact information so you can get more information about the loan process. We will also start you on the path to understanding what steps are necessary (if any) to help you put yourself in a position to be able to buy once you understand the process.

If you can, email me the best time and number to reach you so we can discuss this further. Email me at: ScottS@BroadviewMortgageCorp.com

Hi Ida, some of this depends on what type of financing you are trying to use. As far as the delinquency being 16.9% including the subject property – the HOA cert should not include the subject property. You may want to look into that. Unfortunately, if HOA delinquency is condition by the bank that must be met prior to financing, there is no way around that. The first step is to make sure that the information that you are getting is accurate.

Feel free to give me a call if you have further questions. Condos are definitely a challenge in today’s market.

You can reach me on my cell at: 714-336-8286 or email direct at: Scotts@broadviewmortgagecorp.com

Hi Lori,
There are two possible meanings for a home going to “auction”. If a home is foreclosed, then given to a home auction to sell to the open market, that could be one meaning. It sounds like what you’re speaking about is the trustee sale, or the auction on the courthouse steps. This is basically the last step in the foreclosure process where the deed of trust is auctioned off on the courthouse steps prior to the bank taking full possession of the home. If you show up in person, with cash, you can make an offer to purchase the home directly. Unless you are an experienced investor, this is not typically an option that you would pursue.

Your other question is a tough one because there is not necessarily a “right” answer to whether or not you put 20% down or use a program that allows less. Here are a couple of arguments for and against putting down 20%.

ARGUMENT FOR: A larger down payment is more attractive to the seller. In a competitive environment, and all things being basically equal (similar offer price), the seller tends to lean toward the buyer with more “skin in the game” – more money out of pocket. There is a “myth” that sellers do not like down payment assistance programs or FHA, VA loans – That’s not necessarily true. The bad rap that these programs get is usually because real estate professionals are trying to push through an offer for a family that cannot necessarily afford to buy that home – and a high percentage of these offers fall out. We can continue to thank the “unprofessional” members of our business for that one. Thanks guys!

ARGUMENT FOR: More purchasing power. Unless you are eligible for the CalSTRS 80/17, there is obviously more purchasing power that comes with a larger down payment. If you need to be more competitive in the higher price ranges without your payments getting out of control, having a large down payment will help.

ARGUMENT AGAINST: I personally like think that in this economy it’s better to stay liquid. Cash is king but only if it’s available to you when you need it. With California’s budget problems and state economy problems it is best that you be prepared just in case of “employment” emergency. This is my biggest argument against putting all of your liquid reserves into your purchase.

Along the same argument against is the fact that if you did put your money into your down payment, and should circumstances occur that you would need to have access to that money – this lending environment makes it extremely difficult to access the equity in your home. FHA is the only option and you will only be able to get half of what you put in (maximum 90% loan to value when cash out refinance).

This is really a financial planning question when considering to put the money down. I lean toward staying as liquid as possible and making that money work for you in different ways.

As far as FHA increasing mortgage insurance premiums, Yes, they are raising premiums slightly. As of now, it will be an increase in the upfront MIP (paid at close of escrow) equal to .50% of the purchase price. Really not a huge deal. As far as the time line, they say “spring” without any specific dates.

If you would like to continue the discussion or if I didn’t do a great job of answering your questions, feel free to give me a call on my cell: 714-336-8286

Hi Lori,

Absolutely, you can get conventional financing with less than 20% down. The biggest challenge with using Conventional financing is that the Private Mortgage Insurance guidelines are even more strict than Conventional and way more strict than FHA. You can use conventional up to 90% if you qualify for Mortgage Insurance, or you can use FHA up to 96.5% with a minimum 620 credit score and no penalty or additional cost for a score under 740, like conventional has.

The best thing to do is to speak with a loan specialist and let’s just look at all of your information. At least then we are able to offer you accurate options to chose from as opposed to guessing at what may or may not be beneficial for you.

It sounds like you have several possible options, the important thing is that you are presented with ALL of your options and educated on the pros and cons of each so that you can make an informed decision about which option best suits you and you.