| |
| |
|
Real Estate Information |
|
|
|
Buying a Home with Zero Down Payment in Irvine, CA
Years ago, the only person that could buy a home in Irvine with zero down payment using a new purchase money loan were Veterans of War (called a VA loan). In the past several years, there has been an explosion of new loan programs designed to fit most any buyers circumstances. Today, most anyone can buy a home with zero down payment if they have sufficient income and decent credit. There are three factors that determine if you have sufficient income to purchase a home with zero down payment, and they are: Purchase price of the home, Interest rates, and debt to income ratio that the mortgage program requires. These three factors are interrelated as described below. The debt to income ratio is the monthly mortgage payment of the zero down loan, divided by your monthly gross income (not your net take home income). This ratio can vary from 35% to 50% dependent upon the loan program, and your credit score. The monthly mortgage payment is determined by the purchase price, current interest rates, and the type of mortgage program, such as 15 versus 30 years, fixed versus adjustable interest rate, etc. There is another ratio that mortgage lenders look at which is the total debt to income ratio which is too complicated to discuss here. This ratio also analysis other debts that you may have such as car payments, credit card payments, etc. You're your credit rating is reported by three different reporting agencies called Experian (formerly TRW), EquiFAx, and TransUnion. Your rating is boiled down to a single number, called your FICO score. An excellent FICO score would be about 800 and higher, and good score is about 700 to 800, an average rating is about 600 to 700, and a poor FICO score is below 600. Some mortgage lenders even have some zero down loan programs for borrowers with poor credit ratings at somewhat higher interest payments and lower debt to income ratios. We are sometimes asked if you can buy a home with no money at all. The answer is no under most circumstances. Even thought the down payment is zero, there are sill some closing costs. Closing costs are typically comprised of loan origination fees, loan processing fees, possibly loan points, Appraisal fee, ALTA title policy, and escrow fee. But there are other options. We can sometimes negotiate with the seller of the home to pay for a large part of your closing costs. Our best result to date, is we helped a buyer purchase a Condo in Irvine and their total out of pocket cash expense was $795! The buyer was a single woman, who was a first time buyer, using a zero down loan that we found for her, and her credit was average. We were able to convince the seller into paying for all of her closing costs except for $795. That home owner now has over $50,000 equity in her home which she can keep tax free if she were to sell that home today! If you would like to learn more about buying a home in Irvine with Zero down or low down payment, contact Vincent Bindi at 949-388-3396. Mr. Bindi is a Real Estate Broker with Keller-Williams Realty and has been selling real estate since 1989. Mr. Bindi has sold over 800 homes in his career and specializes in working with home buyers throughout South Orange County, including the cities of Aliso Viejo, Laguna Niguel, Irvine, Mission Viejo, Dana Point, San Clemente and surrounding communities. He holds California Broker License, and has previously held a General Contractors license and manufactured Home dealers license, and has a Bachelors of Science degree from University of Missouri and a Masters of Science degree from Purdue. Mr. Bindi is available for questions or consultation regarding home sales in south Orange County. Or visit his website to search the Orange County MLS.
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Does Staging Work? Staging can involve minimal effort on the part of a seller. Merely rearranging furniture can show a house off to advantage. Joint Ventures In Real Estate Development; So How Do They Work? There are many reasons why you would consider joining with another person to undertake a development project in Joint Venture. Usually the most basis reason reveolves around something you don't have. Death, Taxes, and Foreclosures So how do you find the best foreclosures. Its not easy as the business is very competitive, especially in this current crazy real estate boom. Real Estate Investing Deals That SkyRocket Your Net Worth 10-Fold Consider these parameters for a real estate deal:Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).So here's a hypothetical question for you: Assuming that the information above is accurate, and the property is located in an area that you view as acceptable and/or favorable, then:If I offered to give you this deal in exchange for $10,000 in cash, would you do it?Remember - this is hypothetical. Negative Gearing - It's Not to Your Benefit! The concept of negative gearing has been originally developed to encourage real estate investment in Australia by allowing any income losses from property investment to be deductible from other income as a tax benefit. This means that the taxable income of the owner will be reduced after the deduction and therefore the total tax payable is also reduced. Eight Out of Ten Millionaires Surveyed Made their Fortune in Real Estate - How? Consider the statistic in the title for a moment.8/10 millionaires surveyed found their wealth in Real Estate. Property Investment Strategy: Securing Properties with Little or No Deposit Property Investing often requires creative strategies to make it successful. Professional property investors often use the option contract as a tool to develop some useful investment strategies. Expense List for Buying a Home There are many expenses that come with buying a home. The following list is a good example of what to expect:Down payment - A minimum of 20% of the home's purchase price is usually required for the best loan terms and to avoid paying private mortgage insurance (see below), but it's entirely possible to buy a house with a smaller down payment. Finding The Perfect Maui Home For Sale If you are thinking of relocating to Maui, this article will hopefully guide you to making a positive decision when thinking of buying a home there. Hopefully, by the end you will be one step closer to finding a Maui home for sale, and being able to purchase it. Do You Know What Design/Construct (or Design/Build ) Means? I Think You Should! These real questions on 'How To' build are answered by a US Master Builder and myself from the development viewpoint, after I received them from readers of my e-book, "Residential Development Made Easy."Question 1. We Buy Houses Scams - How to Spot Them and How to Avoid Them There are many reasons why a home owner would want to sell a house fast. Job change, relocation, debt problems, divorce and inheritance are just a few. Investment Property Part I: How Not to Become a Slumlord After riding the ups and downs of the stock market roller coaster for a while, an increasing number of investors are looking into property investment as a more stable alternative. With hot markets in many parts of the United States, the time may be ripe for you to get into this potentially lucrative trade. Real Estate Bankruptcy Although real estate bankruptcy cases no longer dominate the bankruptcy courts' dockets as they did in the early nineties, but they continue to be filed with great frequency in UK. At its essence, the real estate bankruptcy is a two party dispute between mortgagee and mortgagor. Buying Beach Houses in New Zealand: Real Estate and Investment Opportunities Buying a beach house in New Zealand offers many possibilities.New Zealand is made up of two main islands, North Island and South Island, giving it miles of coastal lands and perfect beaches to live by. Investing in the Baltic Tiger: What Has Estonia Got to Offer? Estonia's reputation is growing within the property investment market. Rising far above her new European neighbours in terms of infrastructure and growth, Estonia is fast becoming the Baltic's very own 'Tiger' economy with a healthy growth rate of 5. Burn, Baby, Burn! Luxury homes are lots of fun to inspect. Sure, the pay is better too, but mostly it's just fun to see how the other half lives! I also get to meet those people who have reached such a level of financial success that they are buying a home that seems like it could have been a boarding school!One of the fun aspects of inspecting large and expensive homes is seeing furnishing and interior design work at the highest level. Real Estate Investing - "The Neighborhood Factor" Real estate investing can be a dream career when the process of buying and selling is mastered. The biggest challenge in real estate investing is not the money to get started or the availability of the product. Rental Property Management - Ten Questions Why hire rental property management? Because doing it all yourself is the surest way to make your real estate investment experience a bitter one. You also have more time to find the next deal when there is someone taking care of the details for you. Escrow Accounts - Are You Paying Too Much? Money in escrow is "dead money". It doesn't earn interest for you and it doesn't reduce your mortgage interest payments. Making it affordable: Nine tips for first time home buyers It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell.
|
 Home  Contact
|
| Real Estate Information © 2006 |
