Can I find 100% Financing in the Central Coast market?

I get this question all the time from buyers looking to jump into the market. For the most part, the answer to that is no. There is a program through the USDA that provides 100% financing for rural properties. I’m told by a local lender that this applies to some areas of Guadalupe, and also some areas of Nipomo, but I haven’t been able to verify it. There is also the Veterans Affairs (VA) Loan Program which offers 100% financing to qualifying veterans. But unless you have some military service under your belt, you are not eligible. Other than that, right now I don’t know of any 100% financing program available to buyers.

Part of of what is driving housing prices down other than foreclosures is the lack of availibility of financing. The down payment gift programs which allowed seller gifts to turn the FHA program into a 100% financing program by letting sellers gift the 3% down payment then required (now 3.5%) for an FHA loan have been done away with as of the beginning of the year. Websites for NACA and the Nehemiah program don’t even pull up anymore. This affects first time buyers more than other buyers since they are typically cash strapped and down payment and closing costs are the biggest hurdles to home ownership. This means that many potential buyers will have to save a 3.5% down payment at a minimum. Conventional financing with even 5% down has evaporated in the Santa Maria market as mortgage insurers have officially designated our market in decline price wise. So, property is cheap, but financing is harder to obtain. There always a catch, right?

tniright_logo1Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879,

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