The market collapse is a huge boon for first time home-buyers: On Friday, we received a $410,000 purchase involving a three year home in American Canyon that last sold for $877,000. Our clients are putting down only 3.5% for an FHA loan, and the entire down payment is a gift from their parents. In addition, the sellers are paying most of the closing costs. Our buyers will therefore be out of pocket about a $3,000 to $4,000 at most to buy a beautiful 3,000+ square foot house with hardwood floors, granite counters and every other amenity known to man.
Our clients already locked in an FHA rate of 4.875%, and their total payment will be just over $2,800 per month for a very safe, 30 year fixed rate loan. In five years, their mortgage insurance will most likely drop off, reducing their payment by almost $200.
These clients could not in their wildest dreams have considered the purchase of such a home in years past.
Our point is once again that these are the absolute best of times for first time homebuyers.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167