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You did not say which state and county/city you are interested in buying in. This is very important as such assistance is a local matter, and varies from town to town, along with the guidelines for getting such assistance.
From the cases that I have seen, you would probably be better off putting your cash aside and have them get you a mortgage along with any closing help you qualify for. You can always pay off the mortgage later with the cash you have put aside if you wish.
Check out the Fannie Mae First Time Home Buyer "Home Path" program it may make sense for you to explore. I think you buying in cash with intent to live there will give you priority (if you can find what you want). https://www.homepath.com/ready_buyer.html
It doesn't say anything about savings, but it doesn't say you can pay cash for the home. You must (see red)
Borrower Requirements
Be a first-time homebuyer. See the definition of a first-time homebuyer.
Occupy the property as their primary residence, non-occupant co-borrowers are not allowed
CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
Your income must be less than the allowable CHDAP income limits.
CHDAP Income Limits when using an FHA first mortgage
CHDAP Income Limits when using a VA, USDA or Conventional first mortgage Meet the requirement of the lender and mortgage insurer / guarantor
------------
If you pay cash there is no lender/mortgage.
and unless it's a grant, which will have it's own rules,. it will have to be paid back when you sell the home or refinance.
It also doesn't say you can't own a purple poodle.
Yeesh, why must people try to write rules in that aren't there. If there's no lender, there will be no lender requirements.
It's quite possible the OP will meet the requirements. It's worth finding out for sure. Nobody here will have the final answer.
It also doesn't say you can't own a purple poodle.
Yeesh, why must people try to write rules in that aren't there. If there's no lender, there will be no lender requirements.
It's quite possible the OP will meet the requirements. It's worth finding out for sure. Nobody here will have the final answer.
No, it says borrower must meet the requirements of the lender. If there is no lender there is no assistance available.
and if anyone thinks it's easy to get even with a mortgage I can guarantee you that it's impossible for a cash buyer to get one. The hurdles in place and the lack of knowledge by city officials that run the programs are astounding. So don't get this person's hope up. I needed this type of program and was told that the property I wanted was outside the city area, and part of the county program which did not have funds. The only program I found was thru a bank which had a bond program, but with the home I wanted my debt to income ratio came short of me qualifying for it.
No one is giving away free cash to someone who does not need it to get into the home. Unless they have the money under the mattress their bank accounts will be scrutinized. Don't be surprised if what people are telling the OP will get them in trouble for bank or mortgage fraud.
These programs are to help people without down payment or closing cost money get into a home. No one is going to give program funds to a person with $95K to buy a home for $100K.
In the OP's case, the OP would be his/her own lender. So I suspect it would be easy to meet the lender requirements. OTOH, I can't imagine there would not be a condition that prevents the cash buyer using public money. But who knows?
Most of the 501 c3 do have asset caps. You must dig in their UW guidelines. It is likely there, buried somewhere, and chances are, they will lose their tax-free status. I found this in the USDA guidelines, something many loan officers are not aware of (but why should they be, when you put someone into an income restricted program?). Any program funded by tax-free bonds needs to be on the lookout. Find someone with a CA HFA program and a willingness to look this up.
Quote:
A. Limitation on Nonretirement Assets
If the cash value of nonretirement assets is greater than $15,000 for nonelderly
households or $20,000 for elderly households, the cash value in excess of these amounts must be
used toward the purchase of the property.
OP, try calling some banks and asking them your question. But from what I've seen banks want to lend so they can make money. If you're a good candidate for one of their loans they will gladly extend it to you. As lenders, they don't always necessarily focus on how much cash you have lying around. They're more interested in income/debt ratio and your ability to pay and pay. But as sellers, they will try hard to get you to purchase some of their investment products once they get a whiff of your 95%.
With a low income, how will you qualify for a mortgage? Also, most conventional mortgage lenders won't write a mortgage for less than $100,000.
What? That simply isn't true. I have mortgaged six houses in the past thirty years and ALL of them were for well under $100,000. And, yes, they were with major lenders. Also, these were all houses I lived in - owner occupied.
What? That simply isn't true. I have mortgaged six houses in the past thirty years and ALL of them were for well under $100,000. And, yes, they were with major lenders. Also, these were all houses I lived in - owner occupied.
You are correct, it's not true. Some markets don't have homes that low, but many across the nation do, and some that don't have homes in that price range may have 1/1 condos under $100K
Ncole, I'm going to offend you here but, as usual, I don't care.
You're very good at giving financial advice so before you blow through your savings buying a house you need to take some advice: research the advisability of doing so prior to doing it. It enters into the concept of leveraging as well as opportunity cost.
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