San Diego's #1 3% Down Conventional Home Loan Q & A for 2021
(Please note, this video was created prior to 2021 - but, these loan amounts, and loan details below, have been updated for 2021...)
✍️ In this video I answer some common questions of the 3% down conventional home loan in San Diego you might not be aware of.
✍️ This mortgage loan is great for anyone that wants to put down as little as 3%, get a loan amount up to $548,250, or put down as little at 5%, and get a loan up to $753,250 and take advantage of record low interest rates.
In this video I will cover:
- The minimum down needed...
- The max loan amount allowed...
- Types of properties allowed...
- If it can be used again after a foreclosure or short sale...
- Possible strategies to get rid of PMI...
- If there's a max number of homes you are allowed to get financing more...
- and more.
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Here's the Questions and Answers:
❓ Question #1 - What's the Minimum Down and Max Loan Amount?
➡️ Answer #1 - The minimum down payment is 3% down, up to a $548,250. It's 5% down, from the $548,250 loan amount up to the $753,250.
(Please keep in mind - these are *loan* amounts and not sales prices. If you put down 3% at $548,250 loan amount your max sales price is around $565,000 +/- and if you put down 5% at $753,250 loan amoun your max sales price is around $793,000 +/-)
❓ Question #2 - What Types of Property Can I Use a Conventional For?
➡️ Answer #2 - This can be for a primary residence, second home, vacation home, or investment property. It's great for a home, townhome/condo, or multifamily property (2, 3, or 4 unit). I do *not* personally deal with land loans, mobile homes, or manufactured homes.
❓ Question #3 - If I Had a Conventional Loan Before - and Foreclosed - Can I Buy Using One Again?
➡️ Answer #3 - Yes, it's 7 years after a foreclosure, if you want to go with a conventional loan. Knowing that, it might be better, if you can, to go with a USDA loan (countryside), FHA loan, or VA loan (if you were/are in the military), or what's called a non QM loan.
❓ Question #4 - Are There Any Strategies to Get Rid of the Mortgage Insurance (MI)?
➡️ Answer #4 - Sure, you could put down 20% or more. That's the easiest way. Past that, I believe MI is misunderstood. If you have MI, your rate is lower. If we are going less than 20% down, I have loans with no MI. Guess what? Because there is no MI, and the lender has more risk, they raise the rate. Care less about the MI, and care more about having the lowest total housing payment possible.
❓ Question #5 - I Have Heard There's a Max Number of Homes I can Use With A Conventional Loan - Is That True?
➡️ Answer #5 - This isn't a worry for most people. Some lenders don't want you to have over 10, or 20 properties, in order for them to feel comfortable doing a conventional loan. But, that doesn't effect 99.99% of the people.
Possible $$$ you will need out of pocket:
➡️ Deposit - You should count on putting between 1% to 2% of your sales price - as your deposit into escrow - within 3 days of your offer being accepted. This is totally negotiable between the buyer (you) and the seller. I have helped clients with as little as $500 into escrow. But, keep in mind with the low inventory in San Diego, and lots of offers on each property, that's not a likely scenario.
Please keep in mind this is 100% refundable - if it's not used and refunded back at the close of escrow.
➡️ Home Inspection - You *should* use a licensed home inspector to check out the property to understand the kind of shape it's in. Do you HAVE to? No, just highly recommended. Depending on if it's a home or townhome/condo it will be somewhere around $250-$500 +/-.
Keep in mind - you can choose to inspection anything you want. The roof, septic, plumbing, electrical, pool, spa, foundation, etc.
➡️ Home Appraisal - You will need to get a home appraisal on the property since you are getting financing. You pay this directly to the appraiser. This has nothing to do with the buyers agent (me), the listing agent, the seller, the lender, etc. This will be around $500 +/- depending on if it's for a conventional or FHA loan.
My offer to you: If you use my services for the real estate and loan I will refund back after the close of escrow (aka after checks are sent out) whatever you spent on your home inspection and appraisal as my way of saying "thank you" for utilizing my services.
Basic documentation needed from you (or you and co borrower):
✔️ Copy of your drivers license (screen shot is fine)
✔️ Copy of your social security card (screen shot is fine)
✔️ Last 30 days paychecks (you should get these from your employer via email and PDF each time you are paid).
✔️ Last 2 months bank statements - all pages (You just log into wherever you have a bank acount online and save the last 2 months via PDF.)
✔️ Last 2 years taxes and W2's - If you do not have them you can get them from the IRS website here.
✔️ Latest statements if you have anything like: 401(k), retirement, stocks, bonds, mutual funds, etc
✔️ If you are self employed we will need last 2 years taxes and W2's (if applicable) as well as year to date profit and loss sign and dated (you can do this - doesn't need to be a CPA).
✔️ We can potentially need more depending on this like: pay or collect child support, have been divorced, have had a short sale or foreclosure, have filed bankrupcty, have rental properties, etc.
Here's your steps to begin:
1) Fill out my online application in 10 minutes or less at www.scottsloanapp.com
3) Once I get the needed supporting documents from you I will double check th application, your needed supporting documents, pull your credit report (it's currently $38 +/- and I pay for that), and get back to you with best scenarios.
Here's more San Diego conventional home loan videos below:
What do you think?
Leave me a comment below – or, contact me here.
Your San Diego 3% Down Conventional Insider,