How to Buy Your First Home
with 1% Down Payment
I remember how in April 1984 (forty years ago) we bought our first home for $224,000. Since I just started in the mortgage business six months prior, we were not qualified to get conventional mortgage. We just had $10,000 for the down payment. The seller agreed to carry her loan with interest of 12% for a year, but I needed to get another $30,000 which I borrowed from friends and clients to whom I paid 15%. A year later, we refinanced the loan with World Savings at 9%. Many things have changed since then. We still live in the house.
Today prices are higher, so are salaries. Thanks to a number of creative programs, people can buy their first house or condo for about $790,000 with 1% down payment and 2% second mortgage forgivable after three years and no mortgage insurance. The Program has income limitations, depending on the property location. The total amount which includes down payment, reserves, closing costs and our 1.5% compensation is approximately $30,000. This amount can be a gift from parents or siblings.
Here is a video fragment of the recorded presentation by Brett Scott from WaFd Bank that he delivered during our recent staff meeting. Our faces occasionally show up in the upper right-hand corner of the screen. Follow this link for more information.
Feel free to contact me on the phone or by email as showing below.
I promise to help!
Manny Kagan,
President,
Pacific Bay Financial Corporation
(415) 225-7920; || mannykagan@comcast.net
NMLS #205637
DRE #00824602