I have good news for buyers in LA County who have struggled to put together a down payment for a home in our hot market. A new loan program allows you to buy a home with just 1% down.
Many of you have asked me about the affordability of housing. Currently, the median price in LA County is $550,000, making the down payment needed to buy a home very high. The good news is, right now, we have a 1% down loan available. It comes from Freddie Mac's Home Possible program that requires 3% combined with a 2% grant from a nonprofit. This 2% grant doesn't need to be repaid, either.
Unlike FHA or conventional loans, this one doesn't require mortgage insurance.
A 680 FICO score is required, and your income should fall within the average median income of $62,000 in LA County, $61,400 in San Bernardino, or $85,000 in Orange County. If you fall into those parameters, you don't even need to be a first-time home buyer. You can even be a boomerang buyer—someone who had a foreclosure or short sale previously.
Another thing that makes this program great is that unlike FHA or conventional loans, you won't be required to have private mortgage insurance if you put less than 20% down. That can save you a lot of money in the long run.
If you want to learn more about this program, talk to your lender soon. If they don't offer it, don't hesitate to give me a call or send me an email. I'd be glad to refer you to many lenders who offer this program at this time. I hope to hear from you soon!