If you are a first time home buyer in Orange County, CA – we’ve got great news. Now’s the time to get in to the Orange County Real Estate Market. With interest rates at record lows, prices at unbelievable discounts off of previous highs, and remarkable choices in all Orange County communities – homes for sale in Irvine to Coto de Caza, to Rancho Santa Margarita, and on down to Dana Point – there are so many great values – get your check book and start shopping!
Did She Say Get My Check Book?
Yep. It will cost you to buy a home these days. No more 105% financing where you build the closing costs into the mortgage and get some cash back. Unh unh. No no no. But here’s the great news – it only takes 3.5 % down payment to buy a home using FHA financing. And you can build a credit for closing costs into the package – even further reducing your cash-out-of-pocket requirement. So let me break this down for you – in simple to understand terms. Here we go!
Buying a Home Using a Low Down Payment FHA Loan Program
So here’s the scenario. You find a great 2 bedroom 2 bath condo for $250,000.00. (Yes, they are out there – get a great Orange County Real Estate Agent and go find one!) Here’s the money it would take for you to move in.
Purchase Price – $250,000.00
Deposit Amount – $2,500.00 (suggested amount – this is due upon acceptance of your offer)
Down Payment – $8,750.00 (FHA required 3.5% – must be paid by the buyer – the $2,500.00 counts toward this, so your money due to close would be $6,250.00)
Closing Costs – $8,000.00 (can be requested to be paid by the seller or rolled into the loan – this includes 1% to buy down the loan rate, escrow costs, title insurance required by the lender, and other loan and escrow fees that are the buyers responsiblity)
So, it total, it is likely to cost you about $17,000.00 in cash to buy your dream condo for $250,000.00 – but you can get that down to only your requred down payment of $8,750.00 by asking the seller to pay for your closing costs, including points. Easy peasy lemon squeezie. What are you waiting for. And to top it all off, you get to take your $8,000.00 stimulus tax credit this year for first time buyers. And you get to deduct your mortgage interest from your taxes. And you can increase your monthly take home by increasing your deductions to anticipate your tax break – or just wait for the big refund next year. It’s all good.
Is Any Part of What it Takes to Be a Successful Firts Time Home Buyer in Orange County Confusing?
Call me. 949-678-3373. Email me OCDealDetective@yohoo.com The answer is out there and I’ll help you find it. It is a great time to buy a home in Orange County – and there are tons of options, tons of deals, and tons of ways to play the game. Go be a winner in the Orange County Real Estate market this year.
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