Real Estate Guru

Zero Down Payment Home Loans in Riverside County, CA

The last blog I posted was in October '07 on Zero Down loans.. at that time, they still existed. Well, they don't anymore, not unless you are a qualified Veteran. If you are a Veteran/active military, you can actually buy up to $408,000 ($417,000 with your VA funding fee financed) with a zero down payment, and you can even higher than that with minimal down payment... Below is the formula for calculating your down payment on a VA loan over $417,000 sale price.

How to calculate down payment for loans over 417k:

Purchase Price x 0.75 + 104,250 = total loan amount

Example;

650,000 purchase price x 0.75 + 104,250 = 591,750 = 91.0% ltv (or 9% down payment)

550,000 purchase price x 0.75 + 104,250 = 516750 = 93.9% ltv (or 6.1% down payment)

450,000 purchase price x 0.75 + 104,250 = 441750 = 98.1% ltv (or 1.9% down payment)

If you are NOT a Veteran, then the next best loan for you (for the lowest down payment) is the Gov't. FHA loan. It requires 3% down, but this down payment can be a gift from a family member, non-profit organization, etc. The FHA loan is also fairly flexible on credit compared to most other conventional (Fannie/Freddie) loans.

Zero Down Payment Loans in Southern California as of March 2008

My last post on Zero Down loans was last fall, 2007. At that time, there were MANY Zero Down payment loans available in all the Southern California Counties. Oh how things have changed! Now there are ONLY two Zero Down payment loans available in all of Southern California: The VA loan (or Cal Vet also) and the FHA loan with a Down Payment Assistance from a Non-Profit Organization.

If you are a Veteran or Active Military, then you are aware of your VA Benefits for buying a home with no down payment. For others who are not Veterans or Active Military, email or call me about the FHA Zero down payment loan. A major court case was just settled by Nehemiah to be able to continue issuing Down Payment Assistance to qualified home buyers.

AND with the 2008 Mortgage Relief Act, FHA loan limits have increased to $500,000 in Riverside and San Bernardino Counties and up to just over $729,000 for Los Angeles, Orange and Ventura Counties. Thus, with just 3% down payment, you can now use the FHA loan program and buy your home, and this is NOT a first time buyer program, it DOES ALLOW all of your down payment to be a gift, AND the FHA loan program allows non-occupying co-signers on the loan!

THIS IS A GREAT TIME TO START LOOKING TO BUY A HOME. PRICES ARE FINALLY AFFORDABLE FOR SOUTHERN CALIFORNIA HOME OWNERS!

For more LOCAL real estate news in Southern California and to SEARCH the Realtor MLS, go to my website at www.TeamHomeSales.com