Los Angeles Living

If you are thinking of buying a home in Los Angeles, or anywhere for that matter, wait until you have closed escrow and are in your home before you apply for more credit.

The lender may run a full credit screening before funding the loan and they could find that your debt has increased to a level where you will not be able to afford your monthly payments.

Read more on Last Minute Credit Screenings

I was recently introduced to Broadview Mortgage, a lender in California who specialize in CalPERS loans, public employees and CalSTRS loans, employees of public schools and community colleges. They have recently added a new loan to their portfolio, healthcare workers.

This is an exciting new opportunity for almost anyone in the healthcare field to obtain an affordable loan.  The category is broad - medical receptionist, physicians aid, ambulance driver, physical therapist etc.

If you have any questions, especially if you would like to know if you qualify, please let me know. I would be happy to put you in touch with the appropriate party.

Below is an outline of eligibility for the three loans:

This is an overview of the actual loan:

Visit my website for more details of this loan.

Buyers, this is an excellent post to help you educate yourselves the actual costs involved in the purchase of your new home.

Contrary to what one would think would be common sense, the less you put down on a house, the less your interest rate is going to be. 

Why?

In their infinite wisdom Fannie Mae and Freddie Mac. the underwriting gurus of most of the nation's loans, have determined that down-payments of 20-25% which are not insured by Private Mortgage Insurance (PMI) are high risk. Down-payments of over 25% receive lower interest rates. Loans covered by PMI remove the foreclosure risk to lenders.

As an example, in late August a buyer putting down $80,000 on a $400,000 house could have qualified for a 4.875 rate on a 30-year fixed mortgage. This rate was offered to borrowers only putting 5% down. Those who put down 25% got an even higher rate, 5.375%. 

Those putting down less have more in their pockets to take care of repairs, cover emergenciecs, etc. And, when there is 20% equity in the home the PMI will no longer be required.

However:

In today's market some lenders are not releasing borrowers from the PMI requirement.

Also, the monthly payments are going to be higher for those putting down less.  Example: 25% down on a $400,000 house will require payments of $1,6870 a month. 15% down means payments of $1,906 – $1,799 in principle and interest and $107 in PMI. The PMI is tax deductible, so depending on the borrower’s financial status, the net mortgage cost could be less.

It is advisable to put more down and build on your equity.