San Diego's #1 3.5% Down FHA Home Loan 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 ins and outs of 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:

  • Whether you need to be a FTHB or not for this loan...
  • The types of properties that will work...
  • The down payment needed...
  • The max loan amounts allowed...
  • and more. 

✍️ If you are finding value from this video, I would really appreciate if you could smash that like button, subscribe to get more hard hitting videos just like this, and tap that notification bell so you know when a new video comes out.

Here's the main points and highlights:

✍️ You do *not* need to be a first time home buyer - you can have never owned before and/or never owned anything ever.

✍️ This will work for anyone looking to *live* in the home as their primary residence (does not work on second home, vacation home, or investment properties).

✍️ This works on any livable home, PUD (planned urban development), town home/condo (that is an FHA approved complex), 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 3.5% of the purchase price. Just take your purchase price x 0.035 = your needed down payment needed. 

Here's a few down payment needed examples:

➡️ $300,000 x 0.035 = $10,500

➡️ $400,000 x 0.035 = $14,000

➡️ $500,000 x 0.035 = $17,500

➡️ $600,000 x 0.035 = $21,000

➡️ $700,000 x 0.035 = $24,500

➡️ $750,000 x 0.035 = $26,250

The maximum loan amount in San Diego are as follows:

➡️ Max loan amount for a 1 unit is $753,250

➡️ Max loan amount for a 2 unit is $964,300

➡️ Max loan amount for  3 unit is $1,165,600

➡️ Max loan amount for a 4 unit is $1,448,600

✍️ The maximum debt to income ratio allowed is 46.99%/56.99% - that means up to 46.99% of your debt can be towards a total housing payment and up to 56.99% of your debt can go towards your total housing payment plus debts (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 FHA lenders that require different credit score minimums. But, I have lenders that will go down to a 580 minimum credit score.

The waiting periods for the FHA loan are as follows:

➡️ 2 years from Chapter 7 discharge date

➡️ 3 years if you have a foreclosure

➡️ 3 years if you have a short sale

Let's dive into some typical questions and answers:

 Question: Can I use the FHA loan in conjunction with your down payment assistance program?

Yes, 100% - that's how it is done. There's a small loan for your 3.5% down payment, you have a 96.5% FHA loan, and together that = 100% financing.

 Question: If I have had an FHA loan before - can I get one again?

Answer: Yes, of course. You can have 1 at a time (usually) but you can buy and sell using an FHA loan as much as you want.

 Question: Why would I go with an FHA loan over a conventional loan?

Answer: Generally speaking the FHA loan allows for a higher DTI ratio, lower credit score, lower down payment needed above the conforming limits, and overall easier to get as a buyer.

 Question: Okay, you have mentioned the positives - what are some negatives?

Answer: I would say some of the negatives versus a conventional loan are: the UFMIP, having it mandatory to buy an FHA approved condo/town home complex, and owner occupied homes only.

 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 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:

1) Fill out my online application in 10 minutes or less at www.scottsloanapp.com

2) Once complete I will be alerted, check everything over, send you out a list of needed supporting documents, and clarify anything if needed

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 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,

Scott

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