I have a great long program I want to talk to you about that’s really designed for first time homebuyers. But you don’t have to be a first time homebuyer. You can buy a home with 1% down payment. You heard me. Rates 1% down and there’s no PMI. Let me walk you through it. Sales price of $667,000.
You’re down. Payment is 3%, about 20,000. I’ll explain. You’re going to receive a 2% gift from the bank that you will not have to repay. I’ll explain that in a second. So that’s going to be a credit of $13,000 your loan, and it’s going to be about $647,000. You’re probably going to have about $10,000 in closing costs. But with the right real estate agent, you can get the seller to pay those $10,000 for you.
The summary, about $7,000 you need to buy home for $667,000. Couple of quick notes. It’s available in Orange and L.A. County, parts of Northern California. In Orange County, you got to make less than 142,000. L.A. County less than 109,000. Minimum credit score 660. Final note, who’s going to give you 13 grand and not make you repay it? We have a bank that will give you the $13,000.
And basically, if you keep the home for three years or more and you do not pay down more than 20% of the principal balance, that $13,000 becomes forgivable. If you have any questions about a scenario for you, a friend, a client, please reach out to any time. Thanks.