Buying a home, whether you’ve done it before or if it’s your first time, can be a scary and stressful process.  You might be asking yourself lots of questions. Where do I start? What should I look up? How can I save up for my home? Am I paying too much for my home. 

Whether it’s your first time buying real estate in California or if you’ve bought a house before, take a second to relax since we have you covered. We will break everything down for you, so you can find that dream home you’ve always wanted.

While buying a home in California and finding the right programs for you can be complicated, your experience can be even better with expert advice and guidance.

Have Bad Credit? No Problem!

  • Lots of borrowers trying to buy a home have low credit scores. You no longer need a down payment worth 20% of your home and perfect credit to get a St. George home loan. 
  • Federal home buying programs offered through the Federal Housing Administrationand the USDA can help you buy a new home if you have a low credit score.
  • Explaining this further, even a 580 credit score can get you a down payment of 3.5% with an FHA loan.
  • If you have a low credit score and can’t qualify for a regular home loan, look into:
  • FHA loans – 580 minimum credit score, down payment of 3.5%
  • VA loans – option for veterans; no insurance premiums and up to 100% financing
  • USDA Mortgage – option for homebuyers in suburban and rural areas; no down payment requirement
  • You still have great options like these ones above if your credit score is less than perfect!

 

Lenders might not offer all these programs

  • You should look at which lenders offer which programs before deciding on one.
  • All lenders will offer conventional loans but not every home-buying program. With this in mind, when looking for the best lender in Utah for your needs, look at whether they have the right program for you. 
  • Match your Budget with your Perfect Home

 California home buying programs have specific qualification guidelines

  • Different programs will have different guidelines and minimum requirements for prospective homebuyers.
  • In other words, you might qualify for one program but not another home-buying program.
  • As an example, Veterans trying to buy a home in an urban area can get either a VA or FHA loan but not a USDA loan.
  • Before applying for anything or buying your home, your loan officer can discuss different loan options in acquiring a loan that you’ll qualify for.

Looking Around for Lower Mortgage Rates

 

How to Access Homebuying Assistance

  • You might be eligible for housing assistance, which are programs that can reduce your financial burden and improve the home-buying process by helping to cover closing costs or your down payment, if you are low-to-moderate income and are buying property in California or Utah as a first-time buyer.

 

Can’t Afford a Down Payment? No Issue!

  • There are still homebuying programs without a down payment if paying a down payment is a barrier for you and housing assistance is not something you want to try out for.
  • Keep in mind, however, that homebuying programs without a down payment come with higher FICO score requirements.

 

Preapproval Before You Buy

  • We recommend waiting on house hunting until you’re preapproved for a mortgage first.
  • Getting preapproved is imperative, even though you could be eligible for homebuying programs without a down payment or specific programs in California for those with low credit scores.
  • Having that letter of preapproval can give you a leg up when it comes to negotiating by the time you find a home you want to buy.
  • With these facts about homebuying programs in California, ensure that you are choosing the best lender for your upcoming mortgage.
  • This article should have addressed any worries and fears you might have about the homebuying process. Instead of working yourself up over your new home, you should be excited about your future move-in day!
  • Don’t be afraid to reach out to us if you want a highly-rated mortgage team to guide you through the process. Sun American has consistently ranked as just one of the many amazing mortgage companies serving the Valley for 30 years in a row, and we have even expanded to Utah.
  • See you next time!