Here's the new way of working... brilliant article:
http://www.mavericksatwork.com/?p=108
Work isn't a place you go, it's something you do.
Our Contact Information
- Principals:Doulglas MacDonald - Realtor and Annette MacDonald - Mortgage Consultant
- Direct Line:707-649-5115
- The Franklin Group:Part of Keller Williams Realty and First Priority Financial 195 Glen Cove Marina Rd Suite 101 Vallejo, CA 94591
Helping People on the Move...
- Mico and Donna Nincic.The Nincics wanted to find a home close to the water. We came across many homes and finally found one being remodeled by the current owner. After careful negotiations and plenty of waiting, we were able to get the property $25K below the original asking price and negotiated wood floor upgrades at no cost thoughout the first floor. Now the Nincics have a water view and a lovely remodeled home.
- Nick and Kasey Wierzba.Nick and Kasey were first time home buyers and wanted to get something they could fix up and call their own. After looking at a few overpriced "fixers" we came upon the perfect home next to a park. The property had not been taken care of for years. We made an offer approximately 100K below the area price and it was accepted. Now Nick and Kasey have the perfect home to fix up and call their own.
- Daryl Harris and FamilyDaryl and His wife had been renting their parents home for a number of years. They had tried to buy before but became discouraged when they couldn't find an agent to help them locate a suitable property. Within 3 weeks of meeeting Daryl and his family we wrote an accepted offer on a brand new home and had the builder give thousands of dollars in upgrades for FREE!
Recommended Reading
Roger Fisher: Getting to Yes: Negotiating Agreement Without Giving In
Gary W. Eldred: The 106 Common Mistakes Homebuyers Make (& How to Avoid Them), 2nd Edition
Gillette Edmunds: How to Retire Early and Live Well With Less Than a Million Dollars
Dean Graziosi: Be a Real Estate Millionaire: Secret Strategies for Lifetime Wealth Today
David Allen: Getting Things Done: The Art of Stress-Free Productivity
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January 2008
January 31, 2008
January 30, 2008
The Scoop on Zero Down and Low Down Payment Loans
We have all heard the talk of the subprime mortgage crisis and the impact that has had in pushing home prices down. Lower home prices are good for todays home buyer. However, what financing choices does a buyer have in todays market? Are zero down loans simply another subprime-type loan? What about credit scores? Is getting a loan as difficult as the news makes it out to be?
The truth of the matter is that getting a loan above $417,000, a jumbo loan, is a bit more difficult today than it was last year. However, as long as you can prove your income and have a down payment, a jumbo loan can be relatively easy to get. The only problem is that the interst rate on a jumbo loan wil be 1% or more higher than on a loan that is under $417,000.
The good news that no one seems to be discussing is that zero down and low down payment loans are still accessible, especially for the first time home buyer. Zero down loans are GOOD loans. Just because you didn't put down 5% or more, does not mean that it is a "bad" loan. The State of California sponsors a loan program, Cal HFA, through the Housing Finance Authority that offers a variety of low cost and BELOW market rate loans to first time buyers. These programs include 30, 35 and 40 year fixed rate programs. As of todays date, the rate on these programs hovers around 6.125%! Moreover, the State also offers a second loan to cover closing costs for people who qualify. Loan amounts vary by county and can exceed $600,000.
The other type of low down loan that is commonly used is the Federal Housing Authority loan program or FHA. This loan program only goes up to a purchase price of approximately $360,000. However, should the Presidents economic stimulus package go through, the FHA loan limit may rise to above $600,000! FHA requires only a 3% down payment which can be a gift from a relative or donated by the seller to you via a non-profit.
The CalHFA program requires a minimum credit score of 620. The FHA program does not use credit scores in its underwriting, but I have seen banks require a minimum of 550 in order to be considered. FHA does require that all your bills must have been paid on time for the past 12 months.
As you can see, there are still some terrific loan programs that buyers can use in order to purchase a home for zero down or low down payment. The advantage of using these programs is that you can keep your cash in an interest bearing side account rather than locking it up in your house. Therefore, if any emergencies or other opportunities arise, you will be able to a have a reserve of cash to handle the situation.
If you would like further infromation on any of these programs give me a call or shoot me an email.
