The most difficult issue for first-time home buyers in Solana Beach is finding all of the financing they need. That’s not out of the ordinary because you’re usually paying for rent and are trying to save for an emergency fund.
A down payment is usually around 20 percent of the worth of the home in Solana Beach. The median house price in San Diego County is $699,000 so the down payment for the new prospective home you’re looking for would be $139,000 according to the median price calculated in December. If less than 20- percent is paid, you may have to pay mortgage insurance.
Even though you may not have the finances to get your dream home, there are other routes besides the standard conventional loan.
Before the housing crisis became an issue, mortgages without down payments were implemented. In some cases, as much as 105 percent was available to borrow so home buyers could fund the closing costs. When home prices dropped, the owners owed mortgage that the value of their home, because of the lack of equity.
These are some of the lenders that offer zero-down payments according to an article in realtor.com:
VA Loans – Veteran’s affairs mortgage are for members of the military, veterans and their spouses. Down payments and mortgage insurance are not necessary, but the fee for funding could be included with the loan.
USDA Rural Development Loans - Rural Development Loans are through the U.S. Department of Agriculture that meet the criteria for income and credit requirements. If your income is loan or moderate, you need to be able to afford the repayments to the loan. The property must be an area selected as eligible for the no-down-payment loans.
State and Local Homebuyer programs – Usually the income qualifications need you to take a class in home buying. The National Council of State Housing Agencies website well aid you in finding the correct program.
Low Down Payment Loans from Banks and Credit Unions:
Like said earlier, some banks and credit unions offer mortgage loans in with no down payment or a limited down payment. Prospective home buyers in Solana Beach, must meet the qualifications for income for example, a maximum of 80 percent of the median area income. Your credit score is also a factor to show you have an ability to repay.
The initial step for a down payment is preparing yourself financially to be a homeowner in Solana Beach. A free consultation is also available for you with a lender to talk about your options for financing a home purchase with a lower down payment.