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

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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Long Beach, CA (PRWEB) March 03, 2014

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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