Our South County marketplace can be a daunting one for first time buyers, or for anyone who may not have 20 percent to put down on a home. There are many options to help you without the limiting factor of 20 percent down. Lenders have a variety of products that can help anyone who doesn’t quite have that much saved for the down payment.
Just this month, my team and I helped first time buyers into their home using a 5 percent down program with conventional financing, and two down payment assistance programs from the state.
For those buying over the current Santa Clara County limit of $625,500 loan amount, there is a program allowing for as little as 5 percent down, and plenty of options with 10 percent down.
This is important for our market where 20 percent seems the only option. These jumbo loans are a great option, as are first and second combo loans where you only need 10 percent down.
Conventional loans still allow for down payments as low as 3 percent. Loans backed by the Federal Housing Administration have a 3.5 percent minimum down payment requirement available to all borrowers.
You have options—make sure to explore them all!
Jayson Stebbins is a 23-year veteran of the mortgage banking industry. He grew up in Morgan Hill and currently lives in Gilroy. He is the local branch manager of Guild Mortgage. You can reach Jayson and his team at (408) 825-0220 or at stebbinsmortgageteam.comÂ
