Our business in booming right now due to the NEW FHA loan programs. Tons of first time home buyers and buyers with little money to put down are jumping into the market and taking advantage of the extremely low home prices. The NEW FHA loan program requires a 3% down payment on most transactions. In some situations, the down payment is greater than 3% (up to about 10%). The loan allows the seller to pay up to 3% of the closing costs and up to 3% of the down payment. If the seller agrees to these terms that means that the buyer only needs to bring a small amount of money to the table for the deposit and the closing costs. It depends on the purchase price of the home. Here is an example on the purchase of a $219,000 home. Remember that each person’s situation is different. These numbers are only estimates and require bank approval but this will give you a rough idea of the costs…its much more doable than you think!
Offer Price: $219,000
Terms: Seller to credit 3% down payment and 3% of the closing costs
30 day escrow period
Need from Buyer
Earnest Money Deposit due at the time of offer: $4,000
Closing costs due at the time of closing: $3,400
Monthly Payment: $1,710 (includes taxes, insurance, interest and principle)
Wow! $7,400 gets this person into a home. This is why more 1st time home buyers are now able to purchase. There is a “silver lining” in this Real Estate downturn and we are now seeing it! If you would like to look at homes or get pre-approved for an FHA loan, CALL ME TODAY!
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Real Estate Broker
The Duggan Group Corporation
The Duggan Team
Convenience. Experience. Results.
San Ramon CA 94583
650.678.5050 cell
925.806.9126 office
925.406.0925 e-fax
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