Low Downpayment Options for Millennials

Graduate-House

Congratulations, you recently graduated from college! You’re probably working in a good job now and starting to pay off those student loans. You’re probably hoping to buy a house one day, but wondering if you can do it with while also managing those student loans and paying for the high cost of living in San Diego.

You’re not alone. A large percentage of millennials want to buy their own home, but are doubtful that they can afford a downpayment. There are a few who are lucky enough to have their parents help with the downpayment, but what about the rest of you? Fear not, there are plenty of options (you don’t even need great credit).

  • Federal Housing Administration (FHA) loans only require the buyer to put down 3.5% of the purchase price. For a $280,000, 2 bedroom, 2 bathroom condo in San Diego, that’s only $9,800! The monthly mortgage would be even more affordable – only $1,300 (depending on your credit). If you don’t have $9,800 for the downpayment, FHA loans allow the money to come from a gift (from a family member, for example) OR from a credit from the seller to cover closing costs.
  • For those who have great credit scores, there are also conventional loans available that offer 3% downpayments. A 3% downpayment on the same condo mentioned above is only $8,400! All it takes is a little bit of careful saving or asking your family for some help.
  • In some areas of San Diego, there are downpayment assistance programs that will give first-time homebuyers FREE money. These grants are funded by state and local sources. As you might expect, the funds get snatched up by buyers really quickly, so you should start inquiring right away if you’re interested.

The bottom line is this: If you have a decent job and a good FICO score, I recommend you give me a call and I’ll figure out what you need to afford a place of your own. It’s simple and fast. In a city like San Diego, you want to buy as soon as you can so you can start accruing equity.

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  2 comments for “Low Downpayment Options for Millennials

  1. June 20, 2016 at 9:31 pm

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