Financing
Allison James Estates & Homes
Serving Temecula and Murrieta Valley
City of Temecula 1st Time Homebuyer Program:
The City of Temecula FTHB Program is designed to provide loan assistance to lower income persons in the purchase of their first home. The amount of assistance available depends on the buyers qualifications and the price of the home. The maximum amount of assistance is 20% of the purchase price plus closing costs up to a total of $65,000.
Loan Terms: This is a 30 year 2nd mortgage loan at 5% interest. The loan is deferred for the first 5 years, then fully amortized in years 6 - 30. If the borrower transfers title, ceases to occupy the property as his or her principle residence, or refinances with cash taken out, the loan becomes due and payable.
To Qualify: The purchased cannot have owned a home for the previous three years. Tax returns will be reviewed and the buyer must sign a sworn affidavit that they have not owned a home.
Buyer Requirements: The buyer must have sufficient income and credit-worthiness to qualify for a first mortgage through a participating lender. In addition, the buyer must provide a minimum of 3% of the purchase price as a down payment from their own funds and must accept the highest loan-to-value ratio first loan for which they qualify.
Maximum Home Price: The purchase price of the home is limited only by the applicants ability to qualify for financing. The purchase price shall not exceed fair market value indicated by a property appraisal.
Eligible Properties: The FTHB Program may be used to purchase any new or resale home that is 1) in the City Limits; 2) Permanently affixed to a permanent foundation; 3) has a minimum of 2 bedrooms; and is 4) currently occupied by the Seller or vacant (tenant occupied homes are not eligible). The purchaser MUST reside within the home within 60 days of purchase.
The home must be in sound condition and meet housing quality standards as determined by the RDA and building and safety standards. The borrower shall agree to maintain the home in good condition and shall be required to obtain a one-year home warranty as part of the home purchase.
Qualifying Incomes:
Family Size/ ¦lt;br /> Max Income 1 / $52,100 2 / $59,500 3 / $67,000 4 / $74,000 5/ $80,400 6 / $86,300 7 / $92,300 8 / $98,200
Information valid as of 10/09. For current information on fund availability, contact The City of Temecula Redevelopment Agency, Emery Papp @ 951-693-3955. www.cityoftemecula.org
Expected Seller's and Buyer's fees:
The Seller Will Generally Be Expected To Pay For:
Commission ~ Title & Escrow fees; notary fees (seller) ~ Document preparation fee for Deed ~ Document recording charges that affect the seller ~ County Transfer Tax~ Loan fees required by buyer's lender ~ Termite inspection and repairs according to contract ~ Any city transfer/reconveyance tax ~ Special delivery/courier fees ~ Payoff of seller loans ~ Interest accrued to old lender, statement fees, reconveyance fees and any prepayment penalties ~ HOA transfer fee and prorated dues ~ Home warranty ~ Delinquent taxes; judgments, tax liens, etc. against seller ~ Tax proration ~ Recording charges to clear all documents of record ~ Title insurance premium (ALTA)
The Buyer Will Generally Be Expected To Pay For:
Notary fees & Document preparation fees (buyer) ~ Tax and other prorations ~ Inspection fees ~ Homeowner's transfer fees ~ Special delivery/courier fees ~ All new loan charges ~ Interest on new loan from date of funding to 30 days prior to first payment date ~ Fire insurance premium ~ City transfer/reconveyance tax ~ Preliminary change of ownership fee
Pre-Qualification and Pre-Approval:
Getting pre-qualified helps you determine how much home you can afford, based on specific financial information you share with your lender. The lender does not verify this information, and consequently there is no guarantee you will qualify for the loan amount. Getting pre-approved requires that the lender verify your financial information, which serves as a commitment to lend a specified amount based on that verified information. This gives you significant buying power with a seller who recognizes that you will be approved for a loan.
Pre-qualification is an informal discussion between borrower and lender. The lender estimates that amount that you can borrow based on what you tell them about your income and assets. The lender does no verification and is not bound to make the loan when you're ready to buy. On the other hand, loan pre-approval is based on documented and verified information regarding your employment, your income, your liabilities, your assets, and the cash you have available to close on a home purchase.
How is Pre-Approval Better?
To a seller, a lender's pre-approval letter is considerably stronger than a pre-qualification letter. If a seller knows that your financing is secure, your offer is stronger. Pre-approval also gives you peace of mind as you shop for a home, knowing that you will qualify for the proper mortgage according to your needs.
Why it is more important now, than ever before, to talk to a lender BEFORE you begin looking at houses?
I talk to potential buyers every day. Most of them give me a call about a specific property they have seen on the Internet that they want to see right away.
At some point in the initial conversation, I ask if they have talked to a lender about prequalification. Most admit that they have not, but indicate that they have excellent credit and have purchased many homes in the past.
Often, when I try to tell them that the criteria for obtaining a loan are much more stringent these days, they feel like I just don’t want to show them the property. That is only partially true. I don’t want to show them property until they talk to a lender.
There is nothing worse than having a buyer fall in love with a property that they later discover that they cannot purchase. It is morally devastating and a frustrating waste of time and effort.
It is much better start the process correctly, and to have a preapproval letter in hand, ready to attach to an offer to purchase. No time is lost, and the offer is much more appealing to the seller.
And even more importantly, it is better to discover potential stumbling blocks early in the game, when they can be addressed and corrected.
So when I ask a buyer to speak to a lender, I am not putting them off unnecessarily. I am only doing my job as a professional to serve them better. And to help you get the best deal on your next home purchase.
How Do I Get Financing?
FHA Limits by FHA.com
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TERE RICE REALTOR*
Short Sale Specialist
