Affordable Houses In San Diego.

First-Time Buyer programs, VA Loan, CalHFA

Yes, First-Time Homebuyer! There are affordable homes in San Diego. I can definitely help you find the right home based on your situation. There are many First-Time Homebuyer programs to use, and if you have a VA Benefit, this could be an excellent time to use it. Regardless there is a program for almost everybody to accesses, like:

Down Payment Assistance programs.
First-Time Buyer programs (There are too many options to list; call me, and I will send you to the best mortgage broker for you.)
Buying a house with a VA Benefit. (I will direct you to mortgage brokers who have the best First-Time Homebuyer or VA Benefit / VA loan programs in San Diego.)
Low-income programs. (Let’s face it, nobody makes all the money they want; regardless, this should not prevent you from owning your own home. or (Tiny Homes & Mobile Homes). We all need to live somewhere. If you can start with a small home, you can move up later in life if you wish. Just stop renting.

I attend local caravans, and hear are all the newest up-to-date First-Time Homebuyers Programs the bank reps, weekly. Some even have 3% down programs.

Veterans and can guide you in using your VA Benefit to buy a house in San Diego. (San Diego is a Military town)

All you need to do to start is to call me. Mike Frey Realtor 858-330-1242 or hit the contact me button.

Here are some questions to ask yourself first:

Do you want to own a home in San Diego? If yes, great, I can help!
Are you willing to work toward this goal? If yes, fantastic, I can help!
Are you done being a Renter? Great, I can help!
Do you want to take advantage of the First-Time Homebuyer programs?
Are you interested in using your VA Benefit?
I am unreasonable and stubborn and will hold out for the Perfect House and Low Rates. (This is the mantra of a “Forever Renter”)
Willing to look at anything to get me out of renting, I want to build my life and equity in San Diego. (Please call me; I want to help you!)

Homeownership is NOT easy—just making the payments is just the start; repairs and Taxes are still around the corner. BUT, if it was easy, everybody could own a house. The goal is to enjoy YOUR home and watch your equity grow. It may be the best decision you’ll ever make. Yes, you can do it!

By working with ME (Mike Frey Realtor), you will have access to some of the best Lenders, Inspectors & services, all necessary to get the best deal in San Diego.

Contact me ASAP (858) 330-1242. Let’s talk and set up a game plan.

Signing a Buyers Agreement (Your First Step)

The first step is to have a buyer’s consultation. I’ll meet with you at my office or a place of your choice, where I’ll explain my services and ask you to sign an Exclusive Buyers Broker Agreement. (Required by all Realtors) This is an excellent opportunity for me to explain the process and share a few strategies to help you buy a house in a competitive market. With this agreement signed, we can move forward with finding you a home. Contact me, and let’s talk about this.

The Approval Letter, (your second step)

After we discuss the process, we will select a few mortgage brokers who have the best mortgage programs to suit your needs. While you can certainly find your own, I prefer to let you know about the mortgage company to ensure it fits into our strategy for buying a house in San Diego. I can’t stop you from choosing, but I can explain the situation. (Ultimately, the choice is always yours.)

Preliminary Approval Letter is recommended:

Buying a home in a competitive market requires a solid strategy. A quick Pre-Authorized letter from a bank is NOT a Preliminary Approval letter that we can use. We want a (Fully underwritten approval from your mortgage banker) and a well-crafted approval letter to negotiate and secure a house at the lowest possible price. It’s probably the most important thing you can do to negotiate a better price today.

I can direct you to what we want for the perfect strategy. Contact me, and I will help you understand the concept.

Approval Letters types. Yellow or Blue boxes are best.

A pre-qualification simply estimates how much you may be able to borrow to buy a home based on the unverified information you provide to your mortgage consultant. This step helps you determine a comfortable price range, but it might not be accepted by home sellers when you submit a purchase offer.

A preliminary approval, or pre-approval, estimates how much you can borrow to buy a home based on a preliminary review of your credit information and verified income and assets. A preliminary approval letter shows home sellers that you are a serious buyer, which can elevate your home-buying status and strengthen your purchase offer.

Best for First-Time Homebuyer – Buyer Advantage® allows you to complete much of the home financing process and provides you with a commitment letter before you even begin searching for a home. Choosing to participate is optional and costs nothing extra. Presenting a commitment letter with your home purchase offer may help you submit your strongest offer..

NOTE: An all-cash offer means no loan is needed; the buyer has the cash to purchase the home outright. This is the most robust option for buyers and can often win competitive situations even with a slightly lower offer. Mortgage bankers may not favor this, but home sellers do.

These four options help buyers purchase a home. Understanding their differences is crucial for buying a home in San Diego. Talk to me to determine the best strategy for your needs.

Six Basic Types of Loans

Conventional Financing

The standard loan, in a good interest rate market. The higher your credit score, the better you will do rate wise. Most conventional programs require a minimum middle FICO score of 620.

Generally there is a 3.5% to 5% minimum down payment for this type of loan. If you can put down 20% or higher there is no PMI (private mortgage insurance). With less down there is PMI but you can request it to be removed when you reach 80% LTV (loan to value) and should automatically be removed when your property reaches 75% LTV.

FHA Financing

A government backed purchase loan that makes it easier for some borrowers. Minimum required FICO, generally 580, but some programs go all the way down to a 500 FICO score.

There is a funding fee added to the loan balance and mandatory PMI. If you put down less than 20% the PMI can only be removed if you refinance. If you put down 20% or higher, the PMI stays with the property for 11 years.

Better to own than rent in today’s market, so if this is the loan you can qualify for, compare it to current rental rates to see if you come out ahead. With the increase in equity over time and tax credits, you are probably better off owning.

VA loan or VA Benefit

Thank you for your service to our country.

In addition to our gratitude, the FHA created a loan program for active and retired military, to make it easier for you to afford a home. Most notable features of a VA loan:

1. No down payment (not including closing costs)
2. No PMI (private mortgage insurance)
3. No loan limit – as long as you can afford the payment, the cap was removed from VA loans several years ago.

3%, 2%, 1% Purchase Loans

3… 2.. 1.. Liftoff! – Rates are on the rise, but owning is definitely better than renting. So what can you do to take the edge off? Some lenders have 2%, 1% programs. I Love My Lender has 3%, 2%, 1% plans.

If, for instance, you refinance at a 6% rate, your first year you would pay 3%, year 2 you would pay 4%, year 3 it would raise to 5%. On the 4^th year it would move to the original 6% rate, but most financiers feel that in the next 12 to 24 months the Federal Reserve will begin reduce rates. This would give you the chance to refinance at a lower rate.

It allows you to own at a much lower start rate, build equity, and take the tax advantages now while rates are high. When they drop in the future, refinance and save even more.

Non-Traditional Qualification
Bank Statement – P&L/Balance Sheet Financing

In business? Write off a majority of your income? If you don’t qualify for standard financing, a Bank Statement or P&L/Balance Sheet loan may be the answer. Rates are higher than standard loans but lower than hard money.

Cash Out for repairs, upgrades or other projects
Purchase money, based on what you earn, not what you spend
- Bank Statement programs – using 12 and 24 months of statements
- P&L and Balance Sheet – to allow your company to qualify

DSCR – Debt Service Coverage Ratio – Investment Financing
A program for purchasing income property

No Tax Returns Required
Up to 80% LTV
Income Generated by the Property Covers the Debt.

A DSCR loan is a measure of the cash flow a borrower has to pay against current debt obligations for an investment property. A DSCR loan is a type of non-QM loan used by real estate investors to help them qualify for a loan based on their property’s cash flow, without having to verify personal income.

Worried about interest rates and hesitant to commit? I know of a program that allows you to refinance your mortgage within three years of your purchase date. So if rates drop, you can easily refinance and take advantage of the lower rate! Call Me. Mike Frey Realtor 858-330-1242

City Bank “Grants” (You can get this) 20K to 50K New Buyer Program. This program is fantastic for people looking to buy their first home and need help with a little $

If I spoke to you about this program, here is the link. Click Here

I am not a lender, but i can connect you to the best mortgage lenders with the best programs available in San Diego.

CalFHA – “MyHomeLoan Program”

CalFHA Start page. Learn about the programs. Better yet, call a CalFHA Lender and ask them directly what programs you may qualify for. I have a list of Mortgage Loan Officers who I know and like. Call Me, I will send you my recommendations. OR look up one yourself. Here is the link Lender List

Home Financing Tips for First-Time Homebuyer

Don’t hesitate to inform your mortgage consultant before making a change to your employment.
Don’t stop making payments on existing accounts.
Don’t make major purchases with credit, co-sign another loan, or max out existing credit cards.
Don’t assume closing existing lines of credit or paying off collections or charge-offs will improve your credit score.

5. Don’t deplete savings to pay off credit debts.

6. Don’t make large deposits into your bank accounts.

7. Don’t change bank accounts or transfer funds within existing accounts.

8. Don’t hesitate to contact your mortgage consultant if you are concerned something will impact your loan.

Quick Check for First-Time Homebuyer Programs

First-Time Homebuyer programs, I will guide you through the process; the steps will be smooth and seamless. (But if you are curious about what is around the corner, here is a checklist.)

This list “Stream Lines” the processes of the First-Time Homebuyer. We will go in order, and I will guide you through the processes.

Assess Your Finances:

Review your credit score, savings, and debt to understand your financial situation. (Do you qualify for a VA Benefit?)

Set a Budget:

Determine how much you can afford, including down payment, monthly mortgage, property taxes, insurance, and maintenance costs.

Get a Fully Pre-Approved Letter:

Secure a mortgage pre-approval to show sellers you are a serious buyer and know your borrowing capacity.

Research Neighborhoods:

Identify areas that meet your lifestyle needs, considering factors like schools, commute, amenities, and future growth.

Define Must-Haves:

List your essential features and preferences for your new home, such as size, layout, and location.

Attend Open Houses (With Me, not alone). Visit properties to get a feel for what’s available in your price range and what you like or dislike. Consider Future Resale

Value:

Look for homes in areas with good resale potential to ensure your investment grows over time.

We will decide on a Price:

A Buying Strategy with counter offers to get the house. We will have a plan in advance, so there is no guesswork. A plan will allow me to take advantage of emotional Seller Timing to get our offer accepted.

Sign and accept entry into Escrow:

Wet Signatures. (Actually, pen and paper with notary)

Order and review all the Home Inspections:

I will help you get a thorough inspection to identify any potential issues or repairs needed. Your goal is to see whether you can live with it or not.

Negotiate Smartly:

I will Negotiate for you. I will negotiate repairs, including HOA (if any) details and Termite Section 1 & 2 clearance issues. We may ask for Closing Credits, etc. If you’re a First-Time Homebuyer, this is where I can offer value. I will negotiate everything for you over the entire escrow period.

Prepare for Closing:

Prepare for the closing process by understanding the paperwork, including in-person signatures called “Wet Signatures” with escrow.

Plan Your Move:

Organize your move to ensure a smooth transition from renting to owning your new home. If needed, hire moving companies or Home moving Organizers to make the processes easy.

The house will be yours. Start building memories & No more paying rent to somebody else.

Other types of loans - CalHFA

One of the most well-known First-Time Homebuyer Programs is the CalHFA Loans for First-Time Homebuyers. The California Housing Finance Agency (CalHFA) offers low-interest loans specifically for First-Time Homebuyer, often with lower down payment requirements, making them an attractive option. However, I recommend passing on this one. The demand far exceeds the available funds, making competition extremely high, and it’s often not accessible for most first-time homebuyers in San Diego. IF you qualify for a VA Benefit, this is your best opportunity to get a house.

Contact me for assistance with programs like this. I can connect you with the best Mortgage Broker.

VA Benefit - Recommended if you qualify

Introduction to VA Loans

VA Benefits are a fantastic option for First-Time homebuyers who are veterans, active-duty service members, or eligible surviving spouses. VA loan benefit is up $1,060,000. In San Diego. If you wish, you can add money to the benefit and buy a bigger house if that is something you want to do.

No Down Payment Required

Basically, one of the most appealing features of a VA loan is the zero down payment requirement. This can be a game-changer for first-time buyers. But there is a Fee to access the benefit. (Nothing is ever truly free, right?)

No Private Mortgage Insurance (PMI)

Unlike many conventional loans, VA loans do not require private mortgage insurance (PMI). This can save borrowers hundreds of dollars per month, making homeownership more affordable.

Competitive Interest Rates

VA loans often have lower interest rates than conventional loans. This certainly means lower monthly payments and less money paid over the life of the loan.

Flexible Credit Requirements

Because VA Benefit have more lenient credit requirements, surprisingly, This flexibility allows more veterans and service members to qualify, even if their credit history isn’t perfect. (Presently)

Lower Closing Costs

The VA limits the amount lenders can charge for closing costs. Additionally, some closing costs can be covered by the seller, further reducing out-of-pocket expenses for the buyer. Count on closing cost to be around ~2.3% of the price of the house. It can be financed with a loan.

Must be Your Primary Home

Obviously, this is not an issue for most people. (That’s why they are buying a home: to have a place to live.)

Appraisal Requirement

Must be Safe, with no broken windows, Heating (Hot and Cold running water) Sanitary, No Mold, Termites, Water or Fire Damage) Needs to be home-free from major structural issues. In other words, a good safe home to live in. (Not a Fixer-upper or Fix and Flip situation) But you can buy a Home, live in it, fix it up, sell it, and repeat using the same VA loan benefit every 12 months or so. It can be an amazing opportunity for our Veterans. Take advantage of it

VA Loans

Before you are eligible for a VA loan, you must meet certain service requirements. These include a minimum length of service, typically 90 days of active duty during wartime or 181 days during peacetime. Lastly, National Guard members and reservists may also be eligible after six years of service or if called to active duty..

Contact me [email protected], or 858-330-1242

Bonus - Affordable Homes Locations Programs

Contact me to understand how to use these links to help you find opportunities for better loan leverage.

Thee Links:

Freddie Mac Interest Rates Today

FEUC Website using FRB Census Geocoder (ffiec.gog)

Major-Minor Census track 2022

Tract Income Class Map 2022

Mortgage News Daily Android

Mortgage News Daily I-Phone

Contact me to understand how to use these links to help you find opportunities for better loan leverage. Mike Frey Realtor 858-330-1242

Additional Thoughts

The best way to buy a house is to use an experienced local realtor like me. I want to help you! If you follow my advice, you’ll soon be in your own home, building equity, making memories, and starting to build your financial future. Housing is a necessity, the equity made by owning a home will take care of you and your family now and into the future. In my opinion, becoming a homeowner is one of the most critical steps in your life. This is why i choose this profession.

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November 11, 2024 No Comments