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1st Time Buyer Questions

Biggulp69
New Member

1st Time Buyer Questions


Hello All,

My Wife and I are first time buyers and we are just looking for some feedback on what type of loans to look for. Our income is 95k and the only debt we have is a car payment of 378. My Wife's Fico (hers is lower than mine) middle score is 761. We have 30k in cash and are looking for a SFR. How much can we qualify for, what type of loan and interest rate? We live in So Cal and are looking in the Riverside area. Had a friend mention an FHA low down payment loan to keep down payment lower so that we could keep some cash to add an ADU 6-12 months after purchase. Any advice would be appreciated.

 

Thank you so much!!!

 

2 REPLIES 2
Mortgage-Specialist
Established Contributor

Re: 1st Time Buyer Questions

The FHA maximum loan limit for Riverside is $477,250. This means if you were to buy a 500k home, you'd have to put down at least $22,750 (instead of the standard 3.5% down) in order to reduce your loan amount to 477,250 or below. You would surely qualify for this. 

 

You'd be able to qualify for a larger amount  amount if you were to go with a conforming loan. You'd probably for a 625k or so home depending on property taxes,homeowners insurance and HOA. With conventional loans, you can get a way with just 3% down.

 

 

Message 2 of 3
4sallypat
Established Contributor

Re: 1st Time Buyer Questions


@Mortgage-Specialist wrote:

The FHA maximum loan limit for Riverside is $477,250. This means if you were to buy a 500k home, you'd have to put down at least $22,750 (instead of the standard 3.5% down) in order to reduce your loan amount to 477,250 or below. You would surely qualify for this. 

 

You'd be able to qualify for a larger amount  amount if you were to go with a conforming loan. You'd probably for a 625k or so home depending on property taxes,homeowners insurance and HOA. With conventional loans, you can get a way with just 3% down.

 

 


^^ This is correct.

 

We were having issues finding a SFR in San Bernardino county due to the low conventional loan limit ($548K).

 

Once we heard that the new limit for 2022 will be $625K and that some banks were already lending based on the upcoming change, made it possible to finally get our home after a year of searching.

 

It was a grueling search being overbid by 10-20% over asking on older, decrepit, and awul homes but finally found a newer home that hit all the needs for 5% over asking.

 

And remember, FHA & VA loan offers are less considered by sellers as conventioal loans are more solid.

 

Message 3 of 3
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