Buying a home in South Bay is one of the biggest investments we make in our life. Prices of real estate in South Bay vary from neighborhood to neighborhood, and each neighborhood gives you its own reasons to select it. Regardless of the neighborhood you choose, buying a house in South Bay or any other area requires you to break the bank.
What if you don’t have the money or the savings to buy one though? When you know you have found your dream home, but affordability is an issue, then we have got something to say that is of great interest for you.
You are in the USA, the land of dreams, and here we always have an alternate way to fulfill our dreams. This holds true for buying real estate in South Bay too. If you are out of or severely short on money, you can still buy your dream house. Here are a few ways you can do it.
Federal Housing Administration (FHA) loans are one of the most flexible and lenient sources of funds for current home buyers with just a 3.5% initial payment. This fact alone makes it an ideal option for buyers who are looking for multi-unit homes, have low or below average FICO scores, and can’t afford a big down payment. They used to require mortgage insurance premiums (MIP) which were decreased in 2015 to make them even more affordable.
The Conventional 97 was reinstated in 2016 by the Federal Housing Finance Agency (FHFA), the parent company of Freddie Mac and Fannie Mae.
It is a special program that requires borrowers to pay just 3% down payment and allows a third party to donate the initial payment on behalf of the buyer. This donor can be a blood relationship, a legal guardian, domestic or romantic partner, or a spouse. The maximum amount one can get for buying a house in South Bay through Conventional 97 is $417,000 and does not allow the purchase of multi-unit homes.
Good Neighbor Next Door
The GNND is a mortgage program of the Housing and Urban Development (HUD) that requires homebuyers to pay no more than $100 for a real estate in South Bay. People who are eligible to apply for it include:
The buyers also receive a staggering 50% discount on the purchase of the home by accepting that only they will reside in the house for three years. The program allows you to move into your dream house within 180 days, which means you have more than enough time for repairs and other fixtures.
There are other programs that can be considered and are really helpful for homebuyers around the country. These include Loans for Housing Construction (3.5% down payment), Concatenated Mortgage "Piggy-Back" (10% down payment), and the USDA loan (no down payment required).
These programs ensure that the American Dream is kept alive and people can have a roof over their head even if they have no savings. Contact Casa Bella Properties today to learn more about the options you have if your savings cannot buy you the real estate in South Bay that you crave.
If you want to hire the best agents in South Bay, contact us here.
The 33rd Annual Gardena Cinco de Mayo Parade took place on May 4th, 2019. We had a lot of fun!
This parade was held on Gardena Blvd., and Brighton Avenue and attracted over 3.000 attendees this year.
We want to tell you Thank you for participating in our survey for two $75 gift cards to spend in one of the best Mexican restaurants in South Bay!
The winners are Vanessa Rodriguez and Tasha both of them from Gardena City, Congratulations!
For more information contact us in firstname.lastname@example.org
As a first-time home buyer, things can get really tricky for you, especially with the finances. Buying a home in South Bay, LA is a daunting task, whether you are buying one for the first time or for the hundredth time. You have to cut down the budget heavily to buy the house of your dreams.
Luckily, the government realizes this burden. Residents of South Bay who are looking to buy a Home can avail different types of loan mortgage programs so that they may avoid breaking the bank. The California Housing Finance Agency which is more commonly known as the CalHFA facilitates home buyers in the Golden State with four main mortgage assistance programs. These programs include:
This subordinate loan is for the middle class and lower-middle-class income group seeking to buy a home for the first time in California. It is a deferred payment that is generally used to either make a down payment or pay the closing costs.
Subordinate means that you do not have to pay back the loan until you sell the house refinance it or its mortgage is paid off. These loans cover the lower of the home’s appraised value or 3.5% of its purchase price. A good option for qualified borrowers is to combine their down payment assistance loans and grant programs with this program.
You can use this program to bring down the closing costs of the CalPLUS Conventional and CalPLUS FHA loans. You can get a zero-interest loan on 4% of the total loan amount in this program. You can have the payments deferred as long as you keep living in the house. However, it has to be paid back in full in case you are selling the house, refinancing it, transferring the title or default on the loan.
It is very much like the My Home Assistance Program as it is also a subordinate loan which has deferred payments. Its purpose is also to pay for closing costs and down payments. The only difference it has is that it can only be used by teachers, staff members, and school employees who work at K-12 public schools in California.
Energy Efficient Mortgage is an FHA-insured program for both first time and repeats home buyers. It is to be paid back in 30 years with a fixed interest charge. Qualified borrowers can get in the form of a grant 4% of the total loan amount if they make energy efficient improvements to their homes more than the allowed amount.
People, when buying a home in South Bay, get puzzled when they hear about security deposits. This is partly because security deposits are used for at least two distinct elements in a real estate transaction.
Simply put, an escrow account means that a neutral party will hold the funds and will only distribute it when both parties involved in the transaction meet certain conditions. This inclusion of a third party is only to make sure that the transaction is smooth and fair as the person with the money will have nothing to lose in the transaction.
However, it leads to more complexity when it comes to buying or selling a real estate in South Bay. In this post, we will break down for you everything you need to know about escrows whether you are a buyer or a homeowner in South Bay.
Buyers demand security guarantees when making a transaction or sale, don’t you think? In a world increasingly anonymous and integrated into the Internet, it is no longer valid to "trust the other party."
The escrow is an Anglo-Saxon term, better known in the United States as an escrow deposit.
It is a type of contract between two parties in which a good is deposited (money generally), with the peculiarity that the third party in good faith will safeguard the deposited good and will watch over the fulfillment of the contract. In all honesty, an escrow is nothing more than this definition.
Its main usefulness is focused on the sale, in which a buyer and a seller agree to transact a good or service in exchange for money.
The amount of the transaction is delivered to the escrow agent, who will keep an escrow account until the buyer receives the product, or in this case, the house or property. Only when this occurs, the escrow agent will pay the amount of the transaction to the seller.
The escrow solves a security problem. Often two parties agree to transact a good or service but, due to the lack of trust (especially if the parties do not know each other), both will want to protect their interests and avoid any type of scam.
The buying party will want to receive the ownership of the real estate in South Bay before making the payment, while the selling party will require payment in advance.
This is where the escrow contract comes into play. The buyer is assured that, if he does not receive the property or real estate, he will recover his money while the seller has the guarantee that the payment has already been made before delivering the ownership of the property and that this is guarded by the so-called escrow agent.
The security problem is thus resolved, allowing buyers and sellers to keep their interests safe.
Many sellers have adopted the escrow contract to eliminate the distrust that the home buyers may have and thus increase their chances of selling their real estate in South Bay.
If you want to hire the best agents in South Bay, contact us here.
Daily habits including using less water, gas and electricity are common examples of ways that anyone can contribute to a greener environment. For the conservation-minded, environmentalism starts at home. So the question is how to be one step ahead to design my home Eco-friendly? This kind of homes offer so much more than environmentally conscious construction, they can also be innovative and elegant, combining sustainable living with cutting-edge design.
You get countless benefits that come from a green way of life. Eco-friendly home can seriously change your life.
Our Eco-Realtors are ready to assist you, contact us here: http://bit.ly/Contact-CasaBellaP