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 access, 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.
Look at NEW HOUSE Builders. They have programs to change the Mortgage Rate and make it easier for you to get a home. (FYI, You definitely need a Realtor to negotiate this. Don’t Try it alone.)

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 | Phone: 858-330-1242 / Email: [email protected] / V-card

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? Great, I can help!
Are you interested in using your VA Benefit? Great, I can help!
I am unreasonable and stubborn and will hold out for the Perfect House and Low Rates. (This is the mantra of a “Forever Renter”) I cannot Help 🙁
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!)

Homeowners end up with 40 times more net worth than Renters after 10. (NAR Article Jun 2024). So don’t look at those Online Calculators; they do not consider the Net worth of home ownership. 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: Mike Frey Realtor | Phone: 858-330-1242 / Email: [email protected] / V-card 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.

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.

Military VA Benefit - Highly Recommended

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

Mike Frey Realtor | Phone: 858-330-1242 / Email: [email protected] / V-card

Additional Thoughts

The best way to buy a home in San Diego is with the help of an experienced local Realtor like me. I’m here to guide you! By following my advice, you’ll soon own a home, building equity, creating memories, and securing your financial future. Owning a home isn’t just a necessity—it’s a lasting investment for you and your family. That’s why I’m passionate about helping people become homeowners.