San Diego's #1 Down Payment Assistance Program Q & A in 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 break down the 7 most asked questions of my #1 Down Payment Assistance program in San Diego for 2021. 

✍️ This is an awesome home loan program for those that make a good to great income, have a pretty decent credit score, yet need some help with their down payment and closing costs. 

I will answser these 7 questions:

  • What is the minimum credit score needed?
  • What is the maximum loan amount?
  • Do I need to be a first time home buyer?
  • What will my monthly payment be?
  • How much money out of pocket will I need?
  • How long does it take to close?
  • Are these possible now?

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Here are the 7 most popular questions:

Question #1 – What is the minimum credit score needed?

➡️ Answer #1 - The minimum score needed has ranged from 580 to 620 at different times of this program. As of right now it's 580. Please keep in mind - when you apply with me, and I run your credit, that's the score we use. 

Question #2 – What is the maximum loan amount (or sales price) of this loan? 

➡️ Answer #2 - The maximum *loan* amount has ranged from the max confiorming loan amount of $548,250 to $753,250. As I film this video the max loan amount is $753,250 which equals about a $780,000 +/- sales price. 

Question #3 – Do I need to be a first time home buyer to get this?

➡️ Answer #3 - No, it does not matter. You can have owned before, or never owned, for this program, its all good. 

Question #4 – What will my monthly payment be?

➡️ Answer #4 - I have an easy formula I follow for this. If we add up your principal, interest, property taxes, homeowners insurance, and mortgage insurance monthly - here it is below. 

(Please note - these are a close, yet accurate, guesstimate)

It's $350 per $50,000 financed - or, it's $700 per $100,000 financed 

$400,000 = $2800 per month

$450,000 = $3150 per month

$500,000 = $3500 per month

$550,000 = $3850 per month

Question #5 – How much money out of pocket will I need total?

Answer #5 below:

➡️ 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. 

Question #6 - How long does it take to close?

➡️ Answer #6 - It takes no longer than a regular mortgage loan. We can close in 30 days or less. 

Question #7 - Are down payment assistance loans available now?

➡️ Answer #7 - Yes, and no. I am 100% doing these loans now, but competition is fierce in San Diego. With property going over asking price, very quickly with lots of buyers - we need to make sure we have your loan application in, understand all numbers, and make offers on all property you like. 

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 at Scotts Loan App.com. If it's just you - then you fill it out just for yourself. If you are married - it's you and your spouse (regardless if they work or not, their income, their credit, etc.) If its you and a co borrower - then you both fill it out. 

2) Once you are completed I will get an email it was done, and will look everything over to make sure the application is looking good and its a possibility. 

3) Then, I will email you out all the documentation we will need (cough. Look above) and you will gather all of those and either upload back into your loan application portal or email to me in one email. 

4) Once I have received your application completed, and all of your needed documents, I will run your credit, send your way to review, and put together your loan. All of this can be done within a few hours - just dpends on how fast you do the application and provide me the documents I need. 

Here's more DPA videos and info below:

SD DPA Program Highlights

5 SD DPA Program Secrets

SD DPA Program Q & A

SD DPA Program Needed Documents

❓ Of course, should you ever have any questions at all, you can shoot me a text/call, email, or contact me here.  

➡️ Here's that link again to apply

Your DPA Insider, 

Scott

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