Santa Maria First Time Home Buyer Alert
How much money do I need for a down payment?
I’m afraid the days of 100% financing for everyone are gone. Unless you are a veteran with a VA home loan benefit, or buying in a rural area through the USDA loan program, there are not many 100% financing options. (Santa Maria does not qualify as a rural area, but in the past, Guadalupe and parts of Nipomo have qualified). Most first time buyers I’ve worked with in Santa Maria real estate market are using the FHA loan program which allows for a reduced down payment of 3.5%. So, if you are buying a $200,000 home in Santa Maria you would need to save $7000 for the down payment. The FHA loan program also allows you to receive these funds as a gift from another person. Buyers will also need to save their closing costs or request that the seller pay their closing costs. In this competitive market, being able to pay your own closing costs can make your offer stand out from the rest, so the more you can save toward closing costs the easier the home buying process will be for you. If you would like a first time home buyer consultation, please contact my office at (805) 938-9950.
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