Down Payment/Closing Cost Assistance
- The loan funds must be used to pay a down payment and closing costs on the purchase.
- The home you buy must be your primary residence.
- The purchase price may not exceed $485,000 for attached homes or $622,250 for detached homes, subject to periodic adjustments.
- Qualified buyers’ family income must not exceed 80 percent of the San Diego County Area Median Income, also called the AMI.
- You will need to contribute a minimum of three percent of the purchase price.
- You must not have owned a home in the last three years.
- There are no payments on the loan until you refinance, sell, pay off the first mortgage, or no longer occupy the property as your primary residence.
- Your loan repayment will be made in one payment that equals the original principal loan amount plus any accrued interest.
- You should talk to a lender
If you (or your buyer) are getting a loan to buy your house, the bank will send an appraiser. The appraisers sole purpose is to protect the bank’s investment in your home. The bank wants to know that the buyer isn’t overpaying, so if the buyer ever defaults on the loan, the bank can foreclose on the home and recover its investment.
To determine the home’s value, the bank’s appraiser will compare properties, similar to yours, that have recently sold in your neighborhood. These are called “comparables”, or “comps” for short. In addition to comps, the appraiser will also consider things like the home’s condition, age, and size to determine its value. Once the value has been determined, you’ll receive an appraisal packet with all of the details.
The sellers pray that the home isn’t worth less and the buyers pray that the home isn’t worth more. On either side of the transaction, the appraisal can often be a deal killer. Watch to find out exactly why.