California First
Time Home Buyer

   California First Time Home Buyer or novice, take advantage of a Free; Smart; No Obligation mortgage loan pre-approval service helping homeowners nationwide get connected to proven reputable Government HUD FHA Lenders.  The FHA California First Time Home Buyer program only requires a low down payment of 3.5%, which may even be a gift from a relative and the closing costs are allowed to be rolled into the loan.  Complete our Quickform or get first time home buyer training.

   Combine the best of the Internet & Convenience - with the best of  -- Confidence, Security, and Personal Attention you deserve.  Save Time and Money by completing our quick questionnaire to receive a free California First Time Home Buyer pre-approval by a Government HUD FHA lender.  Don't miss the $8000 Tax Credit, extended deadline is April 30, 2010!
 

California First Time Home Buyer

Am I a California First Time Home Buyer?  Back to Top

A California First Time Home Buyer is someone who has not owned any principal residence in the last 3 years.  Get Started Now

 

Do I qualify for the California First Time Home Buyer$8000 tax credit? Back to Top

The tax credit was extended to April 30, 2010.  The buyer must enter into a purchase agreement by April 30, 2010, but has until June 30, 2010 to close on the purchase.

The maximum credit still remains at $8000 for a first time homebuyer, which is a buyer who has not owned any principal residence in the last 3 years.

The extended new law raises income limits for people that purchase homes after Nov. 6.  The full credit will be available to taxpayers with modified adjusted gross income up to $125,000, or $225,000 for joint filers.  Taxpayers between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Higher incomes do not qualify.

           1. Dependents are not eligible to claim the credit
           2. No credit is available for home purchase prices above $800,000
           3. The purchaser must be at least 18 years of age.

                                         Get a free Pre-Qualification to buy a home now!

 

What is HUD & FHA?  Why FHA? Back to Top

HUD is the U.S. Department of Housing and Urban Development, the U.S. Housing Act of 1937.  HUD's mission is to increase homeownership, support community development and increase access to affordable housing fee from discrimination. HUD doesn't lend money they are the government agency that oversees all of the FHA mortgage loans. read more at www.hud.gov. 

FHA is the Federal Housing Administration, they provide insurance on loans made by FHA-approved lenders throughout the United States and its territories.  FHA  - which is part of HUD - insures the loan, so your lender can offer you a better deal.  Again, FHA doesn't lend money either mortgage loan for first time buyers is offered by HUD FHA approved lenders.

Why FHA?  FHA is commonly called the First-Home Buyers Program because it offers you three things:

1.  Low down payment of only 3.5% (may be a gift from a relative)
2.  Low closing costs (may be included in the loan and are tax deductible)
3.  Easy credit qualifying (there're still lenders with a minimum of a 540 credit score)

                                              Locate a HUD-FHA Approved Lender



Do I have to be a U.S. Citizen to buy? Back to Top

No, but you must be a permanent legal resident. 



How much do I need for down payment & closing costs? Back to Top

With FHA, your down payment for a 1 to 4 family home can be as low as 3.5% of the purchase price and you are able to receive this as a gift from a family member.  Take note, you will have to have an additional 3 times the amount of the total mortgage payment in the bank or retirement savings as reserve's if you purchase a 3 or 4 family home.  As for the closing costs and fees, most of these can be included in the loan. Since FHA mortgage loans allow you to include the closing costs in the loan, the only estimated fees you'll have to come up with are the appraisal ($325), home inspection ($250) and home insurance ($700) fees out of pocket.   Get FHA Loan Pre-Approved


 

10 steps to buying a home? Back to Top

1.   Get Pre-Approved - You don't want to fall in love with a home only to find you aren't mortgage ready.  The lender will check your credit and take down information about your Residence, Job, Income and Asset history.  Best of all, it's absolutely free to get pre-approved by simply completing our Quickform.

2.   Contact a Realtor - Your realtor can help you to not only locate a home but also make offers, arrange inspections and will be there all the way to the closing table.  Good news, realtors get paid by the seller of the home not out of your pocket.  Locate a realtor

3.   Hire an Attorney - They will not only analyze the purchase contract but help you understand all the documents when signing at the closing table.  Most attorney's will allow you to pay them at the closing rather than upfront. The FHA loan program for California First Time Home Buyers still allows you to put the closing costs into the loan.  Get FHA Loan Pre-Approved

4.   Locate home, Offer & Win Bid then Sign Contract - Once these tasks are complete, then you will begin the attorney contract review period which usually lasts 3 to 5 business days.  This is the time to get your home inspection completed.

5.   Home Inspection - Please note a home inspection may be the most important step many people decide to skip because it isn't required by the bank.  Do not skip your home inspection.  A general home inspection will inspect the Plumbing, Electrical, Appliances, Roof & Attic, Structural Elements, Exterior Evaluations, Garage.  Any major problems will allow you to renegotiate the contract before it is out of attorney review.  This is paid for by the buyer upfront with an estimated cost for a single family is $250 - $300.

6.   Home Appraisal - Now that your satisfied with the home based on the inspection.  The bank will require an appraisal to be done on the home to obtain the value based on comparable homes, recent sales and listings in the area.  This is paid for by the buyer upfront with an estimated cost for a single family is $325 and $500 for a 2-4 family home.

7.   Bank Underwriting - Your lender will have you sign all of the all the initial bank disclosures and submit them along with your purchase contract, proof of income, assets, identification and appraisal into the underwriter.  This normally takes from 1 to 5 days.

8.   Loan Commitment  - After the underwriter has verified all of the supplied documents and underwritten the loan, they will issue a commitment.  Ready to close, not quite!  Do be surprised when the commitment has a list of items called conditions.  This is normal because there may have been a few items unclear or needed to be updated.  Commonly asked for conditions are updated pay stub or a brief letter of explanation about a derogatory credit payment.  Don't worry, again these are normal so the faster you get your conditions in the sooner you'll be clear-to-close.

9.   Title Policy & - It's time for your attorney to order your title insurance policy.  This will include a tax lien and judgment search on the home.  On the same token, they will search your name, social security number, drivers license number to make sure you don't have any liens of your own.  You will receive an owners title policy insuring your home is free of all liens and the lender will receive a lenders policy ensuring you and the property are free of any liens.  The title Policy is paid for at the closing table not upfront.

       Home Insurance - Now you will need to locate and purchase a fire / hazard insurance policy.  You may also need to get flood or hurricane insurance if you live in either zone. This is another important reason to work with an experienced realtor.  The home owner or seller isn't always going to be honest and the last thing you want is to find out right before you close that you need to carry an extra insurance policy.  The insurance on the home usually is paid for out of pocket in full for one year but this is decided by the lender as some will allow it to be paid at the closing.

10.  Clear-to-Close - Finally, you've taken the steps to owning your own home and received a clear to close with the bank.  At this point, there shouldn't be anymore worries if you followed these steps because you'll have your realtor and attorney next to your side at the closing table.  You already know the home has been inspected, appraised, clear of any liens and insured for hazards.  Take a deep breath, sign and enjoy your new home.  Remember, the first step is always getting pre-approved.
 

California First Time Home Buyers - Do's and Don'ts?  Back to Top

Buying your first home is a very exciting time, not only will you stop paying rent, you'll build equity in your real estate investment.  But for the California First Time Home Buyer, there are a lot of things you need to make sure is taken care of as in getting pre-approved, finding a realtor and locating an attorney.  To cover the basics, we've listed some California First Time Home Buyer tips.

California First Time Home Buyer- What to Do

1.  Get pre-approved.  The first step in home ownership is knowing whether you qualify for a mortgage loan and how much you qualify for.  Not only will it give you legs to stand on when searching for a home, it will save disappointment if you find a home you love and you don't qualify.  Get Pre-Approved Now

2.  Use a realtor.  Whether your buying a home through a real estate company, a foreclosure from a bank or a for sale by owner, a realtor can offer guidance and expertise.  Your realtor can help you to not only locate a home but also make offers, arrange inspections and will be there all the way to the closing table.  Best of all, there is no cost for you to use a realtor because the seller of the home pays the real estate agent fees.  

3.  Hire an Attorney.  Buying a home for most is the largest transaction they will ever make.  Having a real estate attorney to help you is a smart choice.  They will analyze the not only the purchase contract but help you when signing all the documents at the closing table.


When Buying Your First Home - Common Mistakes  Back to Top

1.   Not knowing how much they can afford.  Many California First Time Home Buyers spend all their time searching for the right home, comparing layouts and square footage - but spend very little time researching how much they can afford.  The first thing buyers should do is talk to a qualified lender to get pre-approved.

2.  Don't assume your first offer will get accepted.  Don't be discouraged if your 1st or even 2nd offer on a home is denied.  The market is getting near the lows and the competition for these homes are due to strengthen sooner or later.  Just don't expect to fall in love with a home, make an offer and it's yours...

3.  Skip the home inspection.  The bank is going to require you to do an appraisal on the home but they don't require you to do a a home inspection.  The seller of the home isn't going to tell you there is mold in the basement or the foundation has cracks in it.  The inspector will let you know the age of the appliances, roof and siding to name a few.  Don't skip the inspection on the most likely largest investment of your life just because it isn't required.   

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