📌 In this video I break down the ins and outs of the 3% down Conventional Mortgage Loan in San Diego.
📝 This mortgage loan is great for anyone that wants to put down as little as 3%, get a loan amount up to $510,400 (or a $525,000 +/- sales price), or put down as little at 5%, and get a loan up to $701,500 (or a $738,000 +/- sales price) and take advantage of record low interest rates.
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🕵️ Without further ado - let's jump into the Conforming home loan details.
(Please note - there are new higher loan limits in 2021 - the limits posted below are for 2020 - all of these are being updated as we speak - on my new website - coming by 12/11)
✔️ You do *not* need to be a first time home buyer - you can have owned before and/or never owned anything ever.
✔️ This will work if you are looking to live in your home, it's a second home, vacation home, or investment property.
✔️ This works on any livable home, PUD (planned urban development), town home/condo, and livable 2 unit, 3 unit, and 4 unit properties. I do *not* personally deal with land, mobile, or manufactured homes.
✔️ The minimum down payment needed is just 3% up to a $525,000 +/- sales price. Just take your purchase price x 0.03 = your needed down payment needed.
👉 Here's a few down payment needed examples under a $525,000 +/- sales price.
➡️ $300,000 x 0.03 = $9,000
➡️ $350,000 x 0.03 = $10,500
➡️ $400,000 x 0.03 = $12,000
➡️ $450,000 x 0.03 = $13,500
➡️ $500,000 x 0.03 = $15,000
➡️ $525,000 x 0.03 = $15,750
👉 Here's a few down payment needed examples between $525,000 +/- to $738,000 +/- sales price.
➡️ $550,000 x 0.05 = $27,500
➡️ $600,000 x 0.05 = $30,000
➡️ $650,000 x 0.05 = $32,500
➡️ $700,000 x 0.05 = $35,000
➡️ $738,000 x 0.05 = $36,900
👉 The maximum loan amount in San Diego are as follows:
➡️ Max conforming loan amount for a 1 unit is $510,400
➡️ Max super conforming loan amount for a 1 unit is $701,500
➡️ Max loan amount for a 2 unit is $898,050
➡️ Max loan amount for a 3 unit is $1,085,550
➡️ Max loan amount for a 4 unit is $1,349,050
✔️ The maximum debt to income ratio allowed is 50% - that means if we add up the debts on your credit report + your future housing payment / your average gross income (over 2 years) = your debt to income ratio. (video explains better in detail)
✔️ This loan works for for anyone that has a full time job or business for at least 2 years or longer (It's not just limited to first time home buyers, those with limited income, or those with less than perfect credit.)
✔️ The down payment and closing cost monies can 100% come as a gift from parents or another relative, an employer, an approved charity group, or a government home buyer program.
✔️ Being approved with over 40 different wholesale lenders I have a variety of Conventional lenders that require different credit score minimums. But, I have lenders that will go down to a 620 minimum credit score.
👉 The waiting periods for the Conventional loan are as follows:
➡️ 4 years from Chapter 7 discharge date
➡️ 7 years if you have a foreclosure
➡️ 2 years if you have a short sale
👉 Let's dive into some typical questions and answers:
✔️ Question: Can I use the Conventional loan in conjunction with your down payment assistance program?
➡️ Yes, 100% - that's how it is done. There's a small loan for your 3% down payment, you have a 97% Conventional loan, and together that = 100% financing. (This is limited to $525,000 or less sales price usually - it's hit and miss whether they are allowing 5% funds up to $738,000 sales price)
✔️ Question: If I have had a Conventional loan before - can I get one again?
➡️ Answer: Yes, of course. You can generally have as many conventional loans as you wish. Meaning, primary home, second home, vacation home, rental property.
✔️ Question: Why would I go with a Conventional loan over an FHA loan?
➡️ Answer: There's no UFMIP with a conventional loan like there is with an FHA loan (video explains). Generally speaking, the monthly mortgage insurance (MI) is also less.
✔️ Question: Okay, you have mentioned the positives - what are some negatives?
➡️ Answer: I don't really see any negatives at this point. You can use in conjunction with a down payment assistance program, you can put down as little as 3%, you get to take advantage of record low interest rates. I would say the biggest negative is the MI - but, that's misunderstood (video explains better).
✔️ Question: If I have just enough for the down payment - is there a way I can get my closing costs covered?
➡️ Answer: Yes, we can ask the seller to pay for them in our offer, we can use a lender rebate (video covers), or we can use a combination of the both to limit cash out of pocket.
👉 Here's your steps to begin:
✔️ Fill out my online application in 10 minutes or less at www.scottsloanapp.com
✔️ Once complete, log back in, finish application, and upload your needed documents (Drivers license, last 30 days paychecks, last 2 months bank statements, latest stocks/bonds/mutual funds/etc statements, last 2 years taxes and W2's)
✔️ I will be alerted, check everything over, run your credit, review, and contact you about best scenario.
👉 Here's more Conventional videos below:
👉 What do you think?
☎️ Leave your comment below - or, should me a text/call to (760) 297-4539
Your San Diego 3% Down Conventional Insider,