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Author
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Topic: First time home buyer grants/ loans & PMI questions
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rgtrahn
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Member # 7133
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posted
 
 
I'm in the very early stages of buying my first home. As I talk to my co-workers, family and friends, I hear about different programs to assist in the process.
One of the programs I am interested in, is a Cal HFA loan:
http://www.calhfa.ca.gov/homebuyer/programs/chdap.htm
and more specifically, the School Facility Fee Down Payment Assistance Program (SFF).
http://www.calhfa.ca.gov/homebuyer/programs/sff.htm
My question is two parts. First, has anyone on the board had any success in qualifying and receiving down payment assistance? Secondly, when it comes to buying a house and putting money down, how many people were actually able to put 20% down? For those that were not able to put 20% down, what is your opinion of paying PMI and how long did it take for you to achieve 20% equity in your home?
If I were to buy a house in the price range I am looking at, I would pay approximately $275-300 a month in PMI... Just don't know if it is worth it to put 3.5% down or wait and save 20% and risk the real possibility of interest rates and house prices climbing.
Posts: 781 | From: Roseville | Registered: Oct 2006
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1996 GT
I'm Joe Yates
Member # 4992
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posted
The rates are cheaper on an FHA than conventional financing right now. I'd rather put less money down. Have the sellers pay for your closing costs too, up to 3%.
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http://i.magaimg.net/img/257w.png
Posts: 9308 | Registered: Oct 2004
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Mr.Lucky
CAFords OG
Member # 1772
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posted
I went FHA 3.5% down . Have yet to see a 0 down offer pan out. Pmi sucks but I didn't have 20% down. But I'm happy in the end.
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95GT: Bolt ons.
Good sellers/buyers: Stangs R Us, 1SicGt, sn4bwc, racsirx, WickedStang, Autumnstang97, cali95gt
Posts: 4197 | From: Manteca | Registered: Sep 2002
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wilit
Mustang Messiah
Member # 3367
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posted
In this market, it's going to take a long time to hit that 20% mark. Look at an amortization calculator for your loan and you'll see for like the first 10 years, something like 20%-25% of each payment goes towards the principal.
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"If a man hasn't found something worth dying for, he isn't fit to live." - Martin Luther King Jr.
Posts: 4793 | From: 37.78514° North 122.40100° West | Registered: Oct 2003
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adower
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Member # 5955
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posted
quote:
Originally posted by rgtrahn:
I'm in the very early stages of buying my first home. As I talk to my co-workers, family and friends, I hear about different programs to assist in the process.
One of the programs I am interested in, is a Cal HFA loan:
http://www.calhfa.ca.gov/homebuyer/programs/chdap.htm
and more specifically, the School Facility Fee Down Payment Assistance Program (SFF).
http://www.calhfa.ca.gov/homebuyer/programs/sff.htm
My question is two parts. First, has anyone on the board had any success in qualifying and receiving down payment assistance? Secondly, when it comes to buying a house and putting money down, how many people were actually able to put 20% down? For those that were not able to put 20% down, what is your opinion of paying PMI and how long did it take for you to achieve 20% equity in your home?
If I were to buy a house in the price range I am looking at, I would pay approximately $275-300 a month in PMI... Just don't know if it is worth it to put 3.5% down or wait and save 20% and risk the real possibility of interest rates and house prices climbing.
If you can save the 20% do it. I don't think that homes are turning around for another couple years. If you're disciplined you can have at least 20k saved by then.
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98 Cobra
Griggs
S Trim
HRE
Posts: 3327 | Registered: Aug 2005
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