Financing for new home owners inland empire ca

4 Replies

Good evening

My boyfriend is a first time home buyer and is looking to secure financing. He has the 20% down payment and a credit score over 800. Currently he is looking for a first time buyer program but can't find one that allows him to put the full 20% down. Do any of you know of any lenders that have great incentives for someone like my boyfriend or any lenders willing to cover closing cost. Any help would be greatly appreciated.

Property is in inland empire, ca

Sincerely

Jennifer Smith

Originally posted by @Jennifer Smith :

Good evening

My boyfriend is a first time home buyer and is looking to secure financing. He has the 20% down payment and a credit score over 800. Currently he is looking for a first time buyer program but can’t find one that allows him to put the full 20% down. Do any of you know of any lenders that have great incentives for someone like my boyfriend or any lenders willing to cover closing cost. Any help would be greatly appreciated.

Property is in inland empire, ca

Sincerely

Jennifer Smith

Your BF almost certainly doesn't want a first-time home buyer down payment assistance program. Take a look at today's rate sheet of one of the top DPA programs in California:

The 2nd to last set of rates is what he would hypothetically use, taking 5.625% on a 30YF for 5% in down payment assistance. That rate sucks! Keep in mind there also aren't credit score adjustments, so he gets the same deal as someone with a 650 FICO, even though he's up in the 800 range. That makes zero sense for your BF, but would of course make sense for someone with a 650 FICO.

You generally can't refinance DPA mortgages without penalty for 3 years, and if you add up the extra interest paid out during that at the higher rate, oh look it's "mysteriously" way way more than the "assistance" that he got (how else could these programs be funded?).

DPA makes sense for folks without any down payment and/or bad credit. That's not your BF, your BF is solid. Your BF should call a mortgage broker in his state that he has some reason to believe is competent, and work with her or him instead, to ensure he gets the best deal possible from multiple wholesale lenders competing for his business - not the worst.

As already mentioned, it may be worth it to pay your own closing costs for a super low rate. I just refinanced with Home Possible at 3.5% so I would guess you can get better rates out there with 20% down. There are some great lenders out there offering incredible rates!

@Jennifer Smith like many else have yes you will get a better rate from just about anyyy bank by going conventional loans. Higher down payment =less risk for the bank= better interest rates ask different banks to see what they offer or PM i can get u connected with loan broker who will help u find the best option for u.