Low Cost Loans!

Government Loans:

1. VA
   • $0 down mortgage
   • Available to Veterans, Service Members, and select military spouses
   • Guaranteed by the U.S. Department of Veterans Affairs
   • No PMI
   • Competitive Interest Rates
   • Easier to Quality
2. FHA
   • 3.5%-10% down, dependent upon credit score
   • For primary residence occupancy
   • Can be gifted
   • For first time buyers
3. USDA
   • 0% down
   • For anyone
4. CALHAFA (2^nd Trust Deed)
   • 0% down
   • For anyone
5. Golden State Financing
   • 4% down
   • For anyone
6. 203k (FHA Construction Loan)
   • 3.5% down
   • For first time buyers
7. Homestyle (renovation)
   • 5% down
   • For anyone
8. VA Construction (2019)
   • 0% down
   • For military

 
Conventional Loans:

9. Flex 97 (3% down)
   • 3% down
   • For anyone
10. 5% Down Conventional
    • 5% down
    • For anyone
11. Physician’s Loan
    • 10% down
    • For medical doctors
12. Officer Next Door
    • 10% down
    • For law enforcement
13. Teacher’s Extra Credit
    • 0% down
    • For teachers
14. Good Area Loan

 
Betsy Heller:                       Hi there, Betsy Heller, Achievers Realty. I’m talking today to first time home buyers and those who are moving here from other of state who thought that maybe they couldn’t afford to buy anything. So I’m going to start with a question that maybe you talked to a financial planner and they’ve told you already the answer, but maybe you don’t know. Which would you rather choose? $2 million or a penny that’s been doubled every day for a month? Well, if you gets the penny, you’d be right. It’s over four million. But from first blush, you think, “Well, $2 million, it’s a lot of money.” Here’s the thing, over time that amortization is in your favor. Now, it can either be in your favor or it can be in the bank’s favor.
Betsy Heller:                       And so one of the things that I realized that especially people that are getting out of college and just starting their adult careers, don’t always realize it, is that time is in your favor now. If you can buy a small home and hold onto it, that over time you’re going to see that that equity appreciates and that you’re going to be money ahead. If you dealt that and you don’t understand, if that’s quite true here and now, just talk to your grandparents about the cost of bread or gasoline or anything like that and they’ll tell you, oh, they remember when gasoline was 25 cents a gallon or when bread was a dollar a loaf. And you’ll have better perspective of what things cost today and how that cost of living keeps going up. And so if you can have that working in your favor and have someone else eventually paying your rent on a place while you hold onto it and move up, then that’s so much the better for you.
Betsy Heller:                       So here today is a list of 13 low cost loans and who qualifies for them? So some of them you’ll see are military, or medical doctors, or law enforcement or teachers, but there’s a bunch that say anyone. So anyone who’s a first time buyer, in the case of FHA, anyone, first time buyer in this area, you can still have bought a home but back East, but now it’s been less than three years and you’ve moved here, you can still purchase using that.
Betsy Heller:                       But now, here’s the great part. The FHA loan and the CalHFA loan can be layered on top of one another. So you can use the FHA as a first and the CalHFA as a second. And what that means is that the CalHFA will be used as your down payment money for the FHA. So I’m going to give you two examples of that just so you understand what that would look like today in 2019. So one is a condo that’s in Mission Valley on Rancho Mission Road. It’s listed for $289,000. So one bedroom, one bath, 650 square feet, it has a 338 HOA per month, but that includes water, sewer, and trash.
Betsy Heller:                       So utilities that you’d probably be paying anyway. The total payment with no money down would be $2,050 a month. The rent equivalent for that would be $1,850. You say, “Well, what’s the rent equivalent?” Well, you get to write off the mortgage interest on your taxes, so you actually get to have a write-off even though you’re an employee. It’s one of the few things that Uncle Sam lets you do and you should take advantage of it because it’s tax advantaged income.
Betsy Heller:                       So the second piece is, if you decided you wanted a single family home, you could get a single family home today on Ardmore, in Linda Vista. It’s listed for a value range of $500,000 to $550,000 and it’s an interesting home. It’s funky layout on the outside of it, but it’s in good structural condition, and actually the bathrooms and kitchen had been updated at some point. They’re not that old. And it is 1470 square feet, three bed, two bath between $500,000 and $550,000.
Betsy Heller:                       So let’s say that you paid $500,000 for it today. And again, you use the FHA and the CalHAF, your total payment would be $2338 per month, but your rent equivalent would be around $2,000. And so that rent equivalent is how much you’d be paying in rent living someplace else. I want you to think about that because if you’re living somewhere around Linda Vista or Mission Valley, you’re probably paying between $1,800 and $2,000 anyway.
Betsy Heller:                       You might as well use leveraged money. Again, letting that penny double for you, rather than not. I’m a real estate broker. I’m not a lender, but I’m happy to put you in touch with some of the amazing lenders that I do work with and help you get that first home, get that role on the ladder so that you can have a real estate portfolio as well as having your 401(k) nest egg. So again, look forward to talking to you and you can do this.