As an overall industry standard, most lenders require you pay a 20% down payment. However there is an alternative for Downtown San Diego Condo and Downtown San Diego Loft homebuyers that require only 3.5% down. The Downtown San Diego Real Estate Market has 175 active homes available and out of these, 105 homes qualify for an FHA loan. Homebuyers see FHA loans as a perfect option as they come with a low down payment (usually around 3.5% of the purchase price) and they are also backed by a federal agency. Lending institutions has during the last couple of years lost a lot as they granted loans to current home owners that have not been able to pay their mortgage. From now on they are doing everything they can to curb the risk on approving new loans.
As a Downtown San Diego Real Estate investor one thing to be sure about before starting the home buying process is to make sure you are in good standing with credit disputers and have a good credit score. CNN Money is in their article “FHA to reject borrowers in minor credit disputes“ talking about a new rule that went into effect April 1st, 2012. If you want to qualify for an FHA loan, you can’t have current disputes over $1,000.
This new rule gives the homebuyer a couple of different choices; you can either pay everything in full, provide proof that you are in the process of paying off the debts, or dispute the loan with the creditor as well as providing documentation to the lender. If you qualify is up to the lender to decide; however, the lender does not have to support the decision or provide documentation of not qualifying someone in the dispute cases to FHA. If FHA decides not to back the loan, lenders will not be responsible for the term and loan amount.
Reviewing your credit report and to make sure to settle disputes and errors is an important factor to complete before purchasing a Downtown San Diego home. Homebuyers will need to handle their credit and financial records to be able to approve for a loan as government agencies and lenders are very cautious on whom they approve. ')}