Playa Vista Home Sales Real Estate Blog

Loan Programs For Buyers With Less Than 20% Down Payment – 2.26.2010

Although there are 30 active condo listings in today’s Playa Vista resale inventory, I know that five of them have already received multiple offers and are at various stages in the process of negotiation.  I expect these properties will enter ‘pending’ status shortly.

In this market, well-priced properties with attractive upgrades in desirable locations and views are what attract the attention of qualified buyers. Properties like these are receiving multiple offers within the first week they list on the market.  For buyers competing to purchase these top-rated properties, it is more crucial than ever to have a good understanding on how to structure your finances, understand the loan programs available to you, and have pre-approval with a lender of your choice before finding the home of your dreams!

Did you know that not all lenders offer the same type of loans?  Direct lenders, such as local retail branches of Bank of America, Wells Fargo, and J.P. Morgan Chase offer very competitive loan options.  This way is great for buyers who have strong FICO scores, a sizable down payment, and are looking for a 30-year fixed rate loan.  In today’s market, buyers who have between 3.5% to a 10% down payment, FHA financing is the most popular option.  For all other borrowers, (which are the majority of buyers in today’s market,) it may be helpful to speak with a mortgage broker with access to many more loan products.

Below are some examples of 30-year fixed rate mortgages that are available to borrowers with from 10 to a 19% down payment.  Please keep in mind anytime you put less than 20% down, there will be an additional cost for private mortgage insurance:

1)  Borrowers with at least 10% down, with middle FICO scores of at least 740, and full documentation of income and assets, may qualify for a loan up to $729,750.  This means the maximum purchase price is $810,000. 

2)  Borrowers with at least 15% down, with middle FICO scores of at least 720, and full documentation of income and assets, may qualify for a loan up to $729,750.  This means the maximum purchase price is $858,000. 

Since loan programs change and rates fluctuate, it is important to speak with a mortgage professional directly and discuss the specifics that are applicable to your financial situation.  I would be happy to email you a referral of trusty mortgage professionals. 

I am always happy to speak to you with more detail, should you like more information on the topics discussed above, properties listed below, or more information about Playa Vista real estate.

Enjoy your weekend!

Winnie Licht
Broker, Realtor ® 
DRE #01272501
Coldwell Banker – Playa Vista
President’s Circle Distinction – Top 5% internationally
5450 Lincoln Blvd.,
Playa Vista, CA 90094
Phone: 310. 745. 7468
EFax: 323. 375. 0193
Email: winnie@winnielicht.com
www.PlayaVistaHomeSales.com

THE PLAYA VISTA SPECIALIST