01 Jul
First Time Buyer Programs
Posted July 1st, 2006 | View Comments
In response to our Buyer’s Market Tale, one reader had the following question, posted with permission:
Can you explain how a first time buyer can afford such a large mortgage? – John A Buyers Market Tale Original starting price of home three months ago: $565,000. List price after buyer reduced price: $489,500. Offered price: $474,000.
As I mentioned in the article, I changed the numbers for the sake of confidentiality. The actual numbers are lower. Plus, he has a good job, and did 95% financing. By the way, up to 100% is available — there are lots of new programs out there you might be interested in like a new CalHFA product and others.
Other first time buyers focus on something more readily affordable than the real numbers in this case, to be sure. I have a listing coming up in Rosemont for about $320,000 that will be ideal for such a buyer — or there are many condos available in decent areas for under $200,000.
