Buy a House or Condo in Orange County for only 1% Down

Saving up for a down payment can be tough, but once you buy a property, Clients’ find the mortgage payments are typically on par with Orange County rents after accounting for the tax savings from the mortgage deduction.  Getting your foot in the door is often the greatest challenge.

While FHA mortgages require only 3.5% Down, many Orange County Condo Associations are Ineligible

Traditionally, FHA mortgage financing was the best loan products for first-time home buyers who didn’t have a large down payment but were tired of paying rent.  FHA only required 3.5% down payment and have the lowest 30 year fixed rates available to Californians. However, use of FHA financing is often unavailable to first time homeowners purchasing condominiums in Orange County.  Condominium Associations must be approved by the Department of Housing and Urban Development (“HUD”) in order for a potential homeowner to use FHA financing. Approved associations are sufficiently financially solvent and predominantly owner occupied. However, many condominium associations are ineligible or intentionally do not pursue HUD approval.  You can run a search and check whether an Orange County California Condominium Association is FHA approved at https://entp.hud.gov/idapp/html/condlook.cfm

“Equity Boost” Conventional Mortgages Require only 1.0% Down and No Monthly Mortgage Insurance

A new alternative to FHA financing is now available that allows tenants to become homeowners with only 1% down and no HUD condominium approval is required.  “Equity Boost” is a conventional loan program where borrowers put 1% down which is matched by 2% equity contribution from the lender. Interest rates are comparable to FHA and mortgage insurance is optional, however the rates tend to be a bit higher if the homeowner does not want monthly mortgage insurance. There are also income limitations depending on the geographical location of the property.

We love “Social Purpose” Mortgage Companies:  They Don’t Rip Off our Clients!

Esquire Realty Company is committed to working with top in Orange County and lenders to ensure our clients obtain the financing they need to buy a home in Orange County.  One such mortgage broker is Homestead Lending SPC, a Social Purpose Mortgage Corporation committed to home buyer financial literacy.  For more details, check out the video below and contact Homestead Lending SPC.  Once you are qualified, Esq. Realty will find you the perfect home.