San Diego's #1 3.5% Down FHA Home Loan 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 some of the most common questions I get about the 3.5% down FHA Loan right here in San Diego.
✍️ This mortgage loan is great for anyone that wants to put down as little as 3.5%, get a loan amount up to $753,250, and take advantage of record low interest rates
In this video I cover:
- What the minimum down and max loan amounts are...
- What types of properties can use an fha loan...
- If it's possible to buy using an fha loan if I have had a chapter 7, 13, short sale or foreclosure in the past...
- What the ufmip and mip are...
- If it's possible to have a home now and still use an fha loan to buy...
- and more.
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Here are the most popular questions:
❓ Question #1 - What's the Minimum Down and Max Loan Amount?
The minimum down payment needed is 3.5%. That can be your money, a gift (that's not repaid), or from down payment assistance. The maximum loan amount is $753,250 in San Diego.
❓ Question #2 - What Types of Property Can I Use an FHA Loan For?
You need to live in the property (so no 2nd home, vacation home, or investment property. And, its good for a home, PUD (planned urban development), townhome, or condo. Just keep in mind the townhome/condo needs to be on this list. I personally do not deal with land, mobile home, or manufactured homes.
❓ Question #3 - If I Had an FHA Loan Before - and Foreclosed - Can I Buy Using One Again?
Yes, as long as your foreclosure was 3 years or older - you are allowed to have bought before, using an FHA loan, had it foreclosed on, and then are buying using it again.
❓ Question #4 - Talk More About the UFMIP and the MIP
You pay 1.75% upfront for the UFMIP (and that's usually just financed into the loan. Then, if you are putting down the minimum of 3.5% - you pay 0.85% monthly. Keep in mind for any loan, where you put down less than 20%, you will be paying mortgage insurance monthly. Yes, there are loans that do not have mortgage insurance, with less than 20% down, but your rate is *higher* - so its a wash.
❓ Question #5 - Can I Own a Home Now - and Buy Using an FHA Loan?
Yes, if you own a home now, as long as you have a loan that is *not* FHA, and you buy a new place, to live in (owner occupied), having more than 1 mortgage loan (and house) at a time is fine.
Here's how much $$$ you will likely 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:
Fill out my online application in 10 minutes or less at www.scottsloanapp.com
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 FHA home loan videos below:
What do you think?
Leave me a comment below – or, contact me here.
Your San Diego 3.5% Down FHA Insider,