With home prices and mortgage payments as high as they are in San Mateo County, a lot of buyers aren’t going to have 20% or more to put down on a house, especially if it is their first house. Savvy real estate agents who are familiar with lower down payment loan programs will increase their buyer base and close more deals.
What Types of Lower Down Payment Programs Are Available Today?
There are a few lower down payment loan programs available in the San Mateo County real estate market today. The three most common programs are:
#1: FHA
An FHA loan is a government insured loan that allows home buyers to put as little as 3.5% down for a loan amount of up to $729,750. Several Realtors, especially those of you who have been around for a while, know the old FHA and red flags go up when a client wants to use this loan program. However, the new FHA is much more reliable, takes less time to close and does not have as many restrictions as the FHA of years past.
This program is another product of the FHA program and allows buyers to finance $35,000 to fix cosmetic repairs into their first mortgage. Buyers who don’t have extra money in their account to shell out for cosmetic repairs after paying their down payment and closing costs will now have the option to look at properties that need cosmetic work.
#3: CalSTRS
CalSTRS is an exclusive loan programs for teachers and others who are employed by the public schools and pay into CalSTRS. This program allows the buyer to get an 80% first mortgage, 17% deferred second mortgage, with a 3% down payment and no mortgage insurance. With this exclusive loan program, California teachers will qualify for a higher loan payment than a traditional mortgage or an FHA loan because of the deferred 17% second mortgage.
How Can I Learn More About These Programs and How They Will Increase My Business?
I will be presenting a program at Chevy’s in Foster City next Wednesday June 10th from 3-5pm. Appetizers will be served.
The program is free to attend, but because of space limitations, reservations are required. To register, please call me at 650-520-0915, email me or fill out the form below. I look forward to meeting you there!
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- What Mortgage Can I Afford?
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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
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