Profile picture for mdeaver5

3% Down Conventional Loan Program

I was just reading about this 
 

The New 3% Down Conventional Loan Program With No PMI 


Is there really such a thing and if so would it apply to a new construction home that was priced at $530,000 in Santa Clarita CA "Los Angeles County"?

 
If this is an option any details anyone could provide would be great!
  • April 06 2014 - Santa Clarita
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (11)

Profile picture for Janell2Sell

"Norm d. Plume",

Not sure why you felt the need to be sarcastic.   (Especially while being anonymous.....) 

I recognize that this is a "loan" question.  I did not attempt in any way to provide loan information.  The poster referenced his interest regarding new construction in the Santa Clarita area.   (Something that I do have experience with.)  I thought perhaps it would be helpful for them to know what our local builder's policies are when it comes to submitting an offer in their communities. 

  • April 07 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Janell, I'm curious what question you're answering, only because your post has nothing to do with the question at hand, or with any of the follow up posts either. Its like if I asked you what color is the sky and you answered with a description of a Buick.

 In regards conventional (non-conforming) financing, yes its available at 3% down under the CRA programs at some banks. Some would allow it for new construction.

Some people confuse conventional with conventional-conforming and will tell you 5% down is required which is fairly standard on conventional-conforming loans; though for a $530,000 purchase price you would usually need at least 10% down to get a single, conventional-conforming loan.
  • April 07 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

This is something that will most likely be difficult to find on a broader range from lenders. Most lenders can only go as low as 5% for conventional and usually require PMI. So if this 3% conventional option was available, I would imagine that PMI would be included. If you are seeking a low down payment option there's always FHA. Although FHA require mortgage insurance, this is something that usually comes along with low down payments. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • April 07 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Conventional loans now require 5% down and there is PMI, whether it is borrower paid or lender paid with a higher interest rate. There is also of course, FHA requiring only 3.5% down. PMI is much lower cost in most cases on a 5% down Conventional loan. Depending upon your income levels, etc. you may be eligible for down payment assistance, but you will need to contact a Mortgage Professional to get a free analysis of your specific qualifications and what you could be eligible for. All the best to you!
  • April 07 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The minimum down payment for Conventional Products has recently been changed from 3%-5% down. I have a Grant Program in CA of 5% that can be used to cover down payment and/or closing costs. Income limits on this product range from $85,680.00 to $123,600.00 annually depending on what county in CA you want to buy in.

Best of Luck!
  • April 07 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Janell2Sell

I am not a lender, but have quite a bit of experiencing representing buyers of new construction in the Santa Clarita Valley.  I have represented  buyers purchasing new construction from the majority of the builders in Santa Clarita..  (KB Homes, Lennar, Williams Homes, Pardee, & K Hovnanian.)    In every case, the builders offered their own financing.  (Not that you can't use your own.)  All but one of the builders, required that the buyer get a pre-qualification from their lender of choice.  You didn't have to use their lender, but they did want to confirm the buyer's ability to purchase the home.  Many builders will not offer seller paid concessions unless the buyer uses their lender.

Did the builder discuss their financing options with you and mention if there were any incentives to using theirs?

  • April 06 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for mdeaver5
I did see the post was in April 2013 however since it was still posted on their site I thought maybe it was still good.  Funny that a program would come out in April and end in Dec.

Anyhow thanks for the answers I emailed them directly I will post when they reply. 

 
  • April 06 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
that post is a year old …the program referenced was available then but has since ended 
  • April 06 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for mdeaver5
[Spam removed by Zillow moderator] Here is a link.

[Hyperlink removed by Zillow moderator, see our Good Neighbor Policy]
 
  • April 06 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I have not heard of this option. Who is offering 3% down on a conventional loan with no mortgage insurance?
  • April 06 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
not an option that I have heard about ?


where you reading about this ?  did it reference a bank or firm that was offering it 
  • April 06 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.