There are many resources here on the site if you know what you’re looking for and I recommend that you give us an opportunity to discuss your situation.

Our goal is to educate and empower you to make more informed decisions during the home buying process. We will help you to understand all of your options so that you can make an educated decision about your buying options.

You can either give us a call at the number here on the site, or shoot me an email at ScottS@BroadveiwMortgageCorp.com and leave me the best time and number to reach you and we discuss this a little further.

You will receive a confirmation email with a link to click to attend the on-line webinar. Once you log-in, you will be given the choice of either calling a phone number (which will be provided) or listening over your computer speakers.

Hope that helps!

Scott

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.

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

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