Jeff’s Carlsbad Blog for First Time Home Buyers


Down Payment Assistance Programs in San Diego

First time home buyers can no longer take advantage of the Federal First Time Home Buyer Tax Credit, but if you are in California you CAN take advantage of the first time home buyer tax credit of up to $10K that California has over a 3-year period.

Read more about the California 2010 First-Time Buyer Tax Credit

A number of first time home buyers in Southern California may also qualify for one of the down payment assistance programs in San Diego.

These programs have income (maximum) guidelines based on total household size, but they offer a pretty decent amount of money for down payments (and in some programs for closing costs). The cool thing is there are no payments until you sell the home.

Want to learn more?

Read the article I just posted on Down Payment Assistance Programs in San Diego.

Advertisements

What You Should Know about Buyer’s Closing Costs

This article is specifically written for buyers in  California where we use escrow companies, as opposed to attorneys, to complete the transaction. But lots of this information may still apply, and it’s worthwhile to consider the overall concept – thinking ahead about your CLOSING COSTS.

Closing Costs can really add up - be prepared

Folks who have bought before will have some idea of this already, but first time buyers are often surprised at the fees they have to pay, on top of the mortgage, during their purchase. A savvy agent can, and should, share information with you about the fees you can expect, some of which depend on the price of the home.

If you aren’t being told, or the topic has not yet come up, ASK. You don’t want any big surprises.

The other thing to keep in mind is that in the case of SHORT SALES and REOs (foreclosures) the fees may be higher because the bank will not approve paying some of the normal seller-paid fees.

READ MORE: Some Home Buying Costs You ay Not Think About (Part 2 of 3) – Escrow and Closing Costs


Search for Homes Community Information Relocation Services and more How to get in touch with me

Visit my Real Estate Consumer Blog at Carlsbad Real Estate News for lots of information about the general area

All content copyright © 2010 Jeff Dowler “The California Relocation Dude”

Do You Have Proof of Funds?

Posted in Financial,Offers by Jeff Dowler on April 27, 2010
Tags: , , , ,

Proof of funds (POF) can be an important component of your offer.

If you are a buyer with a down payment, it may be in your best interest to submit an offer with proof of funds. While this may only be required in the case of REOs and short sales as we see here in Southern California, I think it may be in your best interest, and make your offer more competitive, if you include a copy of a bank statement or other record (black out those account numbers) to prove you have the funds for the down payment.

If you are a cash buyer this is pretty much a MUST DO part of your offer.

Your state contract may require this, as ours does, after offer acceptance, but why not show your interest and your financial capability to the seller up front.

Search for Homes Community Information Relocation Services and more How to get in touch with me

Visit my Real Estate Consumer Blog at Carlsbad Real Estate News for lots of information about the general area

All content copyright © 2010 Jeff Dowler “The California Relocation Dude”

Using GIFT MONEY for a Downpayment

Posted in Financial,Mortgage info by Jeff Dowler on May 20, 2008
Tags: , , , , ,

A large number of buyers these days, especially in more expensive housing markets like Carlsbad (and Southern California in general), are struggling to purchase homes. A major issue is the downpayment.

Part of the problem is the changing requirements by the mortgage companies that make 100% financing hard to find, and not available in many cases. Even if you can afford to make monthly payment, without a downpayment your options may be pretty limited.

Coupled with that is the reality that many buyers, especially first time buyers, do not have much of a down payment (10% for a starter home in our area is $50K, but in some very different housing markets you only need $10K). And if you are putting less than 20% down you will be required to have mortgage insurance which adds  even more to the costs.

One solution for some folks is GIFT MONEY. Buyers can take advantage of gift money from parents or other relatives to be used for their down payments. Givers can provide up to $12,000 without tax implications (I advise checking with a local accountant or tax professional to see about any restrictions or requirements), but there is no limit to HOW MUCH you can receive as gift money and use for a purchase.
You will need to provide NOTARIZED letters regarding the gift (from each of the givers) stating that the money is a gift. Check with the lender you are working with to see if there are other requirements, and how to best structure the right loan program for YOUR situation.

************************

If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360
or email me at JDowler@remax.net.

Search for Homes Community Information
First Time Home Buyers Relocation Services and more How to get in touch with me

All content copyright © 2007 Jeff Dowler Carlsbad Homes and Real Estate Tidbits