Broadview Mortgage Long Beach Offers Guidelines for Combining Multiple Homebuyer Assistant Programs to Save Money

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Broadview Mortgage Long Beach reports on assistant programs that permit “stacking”, in order for homebuyers to save money when purchasing a money loan.

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Broadview Mortgage Long Beach announces insight to saving money. Buying a home in California can be costly. Not only do homebuyers have to save up for the down payment, when they start adding up the other closing costs involved in buying a home, it can add up fast.

When using FHA financing, with a minimum required down payment of 3.5%, total funds needed can reach up to 6.5% to 7% of the purchase price.

Homebuyers looking to avoid the long term, high cost of FHA mortgage insurance will be required to bring in little bit more money upfront.

Conventional financing requires a minimum 5% down payment, bringing the total closing costs to around 8.5% to 9% of the purchase price.

Multiple homebuyer assistance programs can be used when purchasing a home. The biggest challenge for most first time homebuyers is saving enough money to cover the down payment, closing costs, and the expenses of moving into a new home.

Homebuyer assistance is a valuable tool that allows cash strapped families and individuals the ability to purchase a home without exhausting the entire savings.

In a buyer’s market, it is not uncommon to ask for, and receive a credit from the seller to help cover closing costs.

Most would argue that today, California is very much a seller’s market, with more buyers competing for fewer homes on the market.

Even if a homebuyer is able to get a seller concession to cover the closing costs, the lender will not allow the homebuyer to apply any of this credit toward a down payment.

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