San Diego's #1 3% Down Conventional Home Loan for 2021
(Please note: This video was created prior to 2021 - but, these numbers below have been updated for new loan amounts for 2021)
In this video I break down the ins and outs of the 3% down conventional home 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 $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.
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Without further ado - let's jump into the Conforming home loan details.
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 $548,250 +/- loan amount. Just take your purchase price x 0.03 = your needed down payment needed.
Here's a few down payment needed examples under a $566,000 +/- 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
$566,000 x 0.03 = $16,980
Here's a few down payment needed examples between $600,000 +/- to $793,000 +/- sales price.
$600,000 x 0.05 = $30,000
$650,000 x 0.05 = $32,500
$700,000 x 0.05 = $35,000
$750,000 x 0.05 = $37,500
$793,000 x 0.05 = $39,650
The maximum loan amount in San Diego are as follows:
Max conforming loan amount for a 1 unit is $548,250
Max super conforming loan amount for a 1 unit is $753,250
Max loan amount for a 2 unit is $964,300
Max loan amount for a 3 unit is $1,165,300
Max loan amount for a 4 unit is $1,448,600
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.
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 San Diego conventional home loan videos below:
What do you think?
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