Southern Califorina has gotten very frusterating and without a huge downpayment home ownership seems out of reach even when making a very good income. Any ideas?
2006-07-17 06:10:43 · 16 answers · asked by monkey f 2 in Business & Finance ➔ Renting & Real Estate
I hear you loud and clear! Just because you MAKE excellent money, doesn't mean you have enough in the bank for a sizeable downpayment, and with real estate prices soaring beyond realistic in many parts of California, I almost makes more sense to find an area that has a more reasonable cost of living? The previous answerer said it best... Start putting some of that good money in a savings account. The bigger the bankroll, the more likely you'll be able to qualify - if for nothing else, at least a modest home. Of course, I would recommend a starter home first, as they will build equity just as any other home would. But the sweet feeling of home ownership can not be topped when it comes to tax time. You'll have a terrific feeling of actually keeping your money, as opposed to paying someone else's mortgage once you're out of the whole renting thing. Good luck!
2006-07-17 06:16:57 · answer #1 · answered by loving father 5 · 1⤊ 0⤋
Have you tried working with a Broker. Why?
A broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.
I ahve worked with clients in Calif, and many are in the interest only or pick a payment program. That is about the only way for someone to get a home with a lower payment. You can get a fixed rate - but depending on the home value (which is high) a 500,000 at a 7% fided 30 year, P/I is $3,326.51 a month, that is just Principle and Interest. Does not have taxes and home ownersw insurance in the payment. Interest only on the same amount, same rate is $2916.67
A 40 year 500,000 @7.25 (If you go 40 yr rate is higher) payment is 3,198.36 Interest payment is the same.
Yoiu may also try the follwong web sites: The government has raised the loan limits on homes in various counties in Calif.
1. http://www.nehemiahcorp.org/
http://www.fanniemaefoundation.org/...
http://www.fha-home-loans.com/
http://www.freddiemac.com/
2006-07-17 08:04:34 · answer #2 · answered by W. E 5 · 0⤊ 0⤋
There are literally thousands of loan programs out there, ask me I should know I am a Loan Consultant (shameless plug I know).
If your credit & income are good & stable, depending on the location & how long you plan on staying in that home or location, I'm sure that there is a loan out there that you would qualify for.
Pick someone who could way your family's needs against the financial concerns, and then get options, last client I worked into a home thought she wouldn't be able to afford a 'condo'. I not only showed her the payments, but didn't let her 'settle' into a smaller condo the Realtor had showed her, cause realtors don't know lenders & banks...
Antal
atoth@surefastmortgage.com
2006-07-17 08:22:01 · answer #3 · answered by Antal T 2 · 0⤊ 0⤋
SoCal is a relatively expensive area, but there are questions left unanswered here... What is your yearly combined income, what are your monthly debts, what are your credit scores, do you have a down payment and if so how much exactly.
It seems as if your issue isn't getting a mortgage loan in general, but more towards getting a mortgage loan large enough to be able to purchase in your area.
You could do an Interest Only Purchase Loan, which may be your best bet at getting into a place.
I TRIED REPLYING TO YOUR EMAIL, but it wasn't activated through Yahoo! yet, please call me.
2006-07-17 06:15:57 · answer #4 · answered by ReggieWjr1 4 · 0⤊ 0⤋
I have been trying to also by a house to. For six years. And between me and my wife we make all most 1,000,000 thousand a year and still we can not find a lone. But my credit is not the best. But with all that money I could spend 1,500 a month on the mortgage. I moved to P,R to be able to by a house. So good luck on that we all need a home.
2006-07-17 06:25:00 · answer #5 · answered by 10th warrior 2 · 1⤊ 0⤋
I work at Costa De Oro Realty as transaction coordinator, and we are having a seminar tonight if you want to come down we are located off the 805. Get off on E Street Bonita Rd exit, go west we are on block west of Ramada Inn on the south side of the street on the corner, email me if you want to see the flyer...
2006-07-17 07:00:31 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Two: wait for prices to go down (they have already started to) or move to a place where prices are more affordable (a lot of people seem to like Arizona).
2006-07-17 06:30:56 · answer #7 · answered by NC 7 · 0⤊ 0⤋
Relocate to Fort Collins in Colorado. It was rated the best place to live.
2006-07-17 06:16:45 · answer #8 · answered by Dubz101 3 · 0⤊ 0⤋
Houses are way too over priced in SoCal. I suggest moving to Indiana.
2006-07-17 06:14:13 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Why don't you save some money for a down payment and move somewhere better?
2006-07-17 06:14:53 · answer #10 · answered by Anonymous · 0⤊ 0⤋