How to use 1% down payment to buy a $300K house
Who says Californians have budget problems? California Cities have no financial pressure at all. At least, they are in a better position than Mr. Mozilo, former CEO of Countrywide. They are even greater or more generous than Presidents Geroge Bush or Benanke to provide us a Santa-Mozilo Loan.
With this kind of city programs, you can afford to buy a home up to $300,000 or more, with your one percent down payment. You can get up to 99 percent loan for your purchase. It is so great, isn't it? Maybe, you will say, "What's the big deal! VA has zero down program" or "DOA has the same zero down program in remote country area." Gee, you are not so easy to be pleased!
Okay, I got it. Let's move on! you haven't seen the best part of it yet. Not like those two stingy Mr. B who want you to pay back their tax credit of $7,500 and like to bite a big slice of your "future profit" through their "profit sharing" project by the so-called "Congress Rescue Bill." Those Californian cities don't charge you interest or ask monthly payments. Compared to those two year no interest programs provided by furniture stores or 7 year no interest program from automakers, is it good enough to please you?
Wow, wait. Things even get much better! If you own (live in?) the house for 15 years, Guess what will happen? Your 2nd loan of $150,000 provided by the city will be forgiven. Yes, it will be "wiped out." (Note: don't be scared when you hear these two words. The situation is working for you, not like Indymac's stockholders being wiped out or the possible GSEs wipe out.) Literally, that means the city will give you $10,000 every year. At the end of 15 years, you don't owe nothing to the city. You own your property "free and clear," except the unpaid balance of the first loan of $150,000.
Am I kidding? No, I am not. "Read my lips" and verify the following attachments (Note: It contains 8 pages in pdf format that are very difficult for me to copy without a writer, I just post the most important part.) It is a decent business. There is no trick or fine print hidden like Alt-A loans, Option loans or any negative amortization loan.
So, hurry to get on board. Common, it is hot. But it is just new and hot out of oven. Don't look it as a hot potato. Find out if your city has this Santa-Mozilo program as an early bird, before time is changed or fund is dried or crunched as subprime loans did. (Note: don't be lazy by just clicking on your city website. You probably can't find it as I can't find it at the city website. Go out and talk to somebody. Please don't tell me we have the most transparent system in the world.)
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As Ronald Reagon forgot, I don't remember anything. Did I work there in that little white cloudy house? Are you sure that was ME up there? How come I am down here? That's definitely not me!
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where did you find the 8 page pdf?? I would like a copy of it.. and what cities are you aware of that have this program?
Dear Thomas:
For the first question, I live in Texas. I got it from a Californian banker who has his handwriting on it as the document shows. You're in Oregon, I am not sure he will work with you so far away from him, since there is something called "community re-investment" requirement set by our banking authorities.
Certainly, no banker is interested in granting the 1st loan if he or she plans to sell the loan to GSEs, even the LTV is a great deal. In the reality of real estate business, who would expect a better LTV higher than that, as a lender or investor (it is just 50%)? But, it is not purely in the context of real estate hardware or business. Certain other factors have to be taken into consideration as it is in a banking or financial "software" territory by itself, or in our economic or political system as a whole.
You may have to go out and check with a small regional (local) banker who does intend to hold the loan as a portfolio loan. Or you may have to check with your local city councilman. Remember there is a saying, "In some situations, who you know is more vital to your success than what you know."
For the 2nd one, have you tried to understand why I intentionally avoid to mention any city's name in my article? I am an incurable naturalist who would like to sit on sideline to watch the funny things happen, without making an intervention or interruption. I have never taken an action to get involved with a nature cause of a situation, if there is nothing in it for me or for my morality to better the world.
I am thinking if it is possible for me to email you the 8-page document. I don't have an answer yet.
Real Homes of Genius: Foreclosing to the Bottom. Today we Salute Compton with a Stunning 71 Percent One Year Decline.
Quote: ...The good news is that the current price may actually make sense for someone since the payment would work out to something like:
PITI: $720/per month 30-year fixed at 6.5%
Unquote
**** **** ****
To pay $ 200 per sq ft for the house is too expensive.
However, it is very clearly the new monthly fixed payment may be $284.43 or less,not $720, under the city Santa-Mozila loan. Where can you find a 1BR 1BA apartment for $300?
Very affordable, am I right?
My salute to the City of Compton. Wish every city can follow so that we would no longer hear the term "housing affordability."
Don't tell me your city can not do it. My answer is naive to a politician, but sounds very familiar to most of us. "If they can do it, why can't you? my dear mayor, governor, President."