Downpayment options

by | Jan 7, 2015 | Real Estate | 0 comments

Upcoming free (& non-promotional) Home Buyer Education Classes:

Saturday, 1/10/15, from 9am-12pm  Happy New Year!
Marshall Community Center, upstairs conference room
1009 E McLoughlin Blvd, Vancouver Wa (kitty corner from Clark College)

Thursday, 1/15/15, from 5pm-8pm
Marshall Community Center, upstairs conference room
1009 E McLoughlin Blvd, Vancouver Wa (kitty corner from Clark College)

…if these dates/times don’t work for you, we have others. Check out the website for more class dates, times, and locations. PLEASE always check  the website for any changes regarding the classes!

Remember…with reservation…we will throw in lunch, or dinner!  🙂
Happy Sunday~

Ok…first weekend of the year, and I am not sure if I have actually accomplished anything or not.  🙂  I can definitely tell that the holidays are over as I am seeing more real estate interest, but it seems that everyone has the same questions….down payment.    So this week, I want to talk a little bit about the loans, and downpayment assistance that is available.  During the home buyer classes, Chris talks more about these, explains ALL the loan programs…AND (most importantly) their Pros & Cons as well.  No matter how good a loan sounds, there are always some cons to it, and you need to be aware of the good..and the bad.  Chris also talks about closing costs, credit (and how he can help you with that), and answers all your questions.

So…this week,I have a quick blog for you from the free home buyer education class lender, Chris Berg with Pinnacle Mortgage, regarding downpayment options.  We know that downpayments are scary, and can be very tough….so we want to give you information that may be able to help you.  Please remember….we are always here for questions, and to help with your home buying or selling…and lending needs!  …and please don’t forget we love your referrals…  🙂

…and…  DON’T go look at houses unless you have talked with a lender, and have gotten pre-approved.  The first step in the home buying process is taking a free home buyer education class (our classes have no government affiliation & are only taught at community centers so there is no promotion & only information….both the good and the bad), and the second step is talking with a lender…like Chris…to get pre-approved so that you are looking at homes that you can afford, and that (if you fall in love with) you can make an offer on.  Now….on to Chris Berg’s blog post…

“I have been recently asked to go over some options buyers may have for their down payment.  I can’t tell you how many times a buyer comes into my office to start their mortgage planning and stating that they have been told by their bank or Realtor that they need to have 5%, 10%, or even 20% of the purchase price for down payment.  While this may be true of some banks that is not true for all banks.  FHA loans require a minimum down payment of only 3.5% and conventional loans with as little as 5%.

Often borrowers also don’t know what options they have for obtaining their down payment.  Here are a few examples that surprise many:

Tax returns-This is your money and is treated like cash.  As long as the tax return hits their account before closing they can use it
Retirement accounts-Borrowers often have the option of borrowing or taking disbursements from their 401k or IRA accounts.
Gifts- Gifts are also allowed for most loan programs.  Gifts need to be from a direct relative and need to be documented
Equity-Buyers can use equity in their current home or even vehicles for the down payment of a home, the new loan will need to be documented

For those buyers who do not have any of these options available all is not lost.  Our bank is one of a very few that offer a variety of no down or low down payment options.  Each option has different pros and cons but most borrowers never hear of them because most banks don’t offer them.  See the list of our programs below:

VA- 100% financing
USDA- 100% financing for rural properties
National Homebuyer Fund loan- 3% or 5% grant for down payment or closing costs on a FHA, VA, or USDA loan…this is free money!
Home Advantage loan- Down payment assistance of about 3.5% with 0% interest and zero payments for 30 years….this is not free money, and will need paid back.

In the end many buyers have a lot more options than they think.  Education is key, if you think some of these options can help you, or someone you know, get into a home now instead hoping that home prices and rates don’t go up please feel free to give me a call!”

Thank you,
Chris Berg
NMLS ID/MLO #198082
Mortgage Advisor for Pinnacle Mortgage Bankers A Division of Pinnacle Capital Mortgage-NMLS ID #81395
12009 NE 99th St.  Suite 1470
Vancouver WA, 98662
360-213-1100 office
503-320-0925 cell

Information is power, and I hope that I am help you!  Good luck, and as always…May the odds be ever in your favor out there….  If you are looking for a real estate agent, I would love to be able to help you.  
As always….this is just a quick overview…. please remember that your agent, and your lender work for YOU.  You drive the bus…we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your homebuying adventure.  The goal is to be informative and non-promotional.  🙂  We are, however, hoping you will call and want us to help with your adventure.
If you have any questions about this, or something you have heard…or if you would like me to help you with your homebuying adventure, please call, email, text, or facebook me anytime.  I am, as always, happy to help!

Thank you again for your business and your referrals!!  …and thank you for referring these classes to your friends, family, and co-workers.

…disclaimer…if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings…

Next Week:  Agency…buying or selling, the questions you should ask
                     Closing costs…what are these & options for them?
      2014 real estate in review & looking to 2015

Last Week:  Hidden fees…what buyers & sellers should know.

Have a great day, and I will talk to you soon,

Tracie DeMars / Realtor

ReMax Equity Group
License# 81289
Vancouver, WA

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