For many would-be home buyers, coming up with a down payment is the biggest barrier to purchasing a home. Even coming up with the 3.5% down payment necessary for an FHA loan can be difficult. As such, Guaranteed Rate’s new Double Match program could be welcome news for those who don’t currently own a home and want to take advantage of today’s low interest rate. The Double Match loan program requires a buyer to contribute one percent of the purchase price of a home, with Guaranteed Rate paying an additional two percent for a total of 3 percent down with a conventional loan.
The two percent down being offered by Guaranteed Rate’s Double Match acts as a grant, so this is essentially free money for someone utilizing the deal. For the borrower, this program can mean it’s possible to purchase a condo with just a few thousand dollars down (depending on price). Unlike some other down payment assistance programs, the grant is completely forgivable and doesn’t need to be repaid if the buyer moves, refinances, or sells.
The program can be used to purchase condos or single family homes with loan amounts of $417,000 or less. With low interest rates for mortgages, it’s possible for renters to stop paying their landlord’s mortgage and begin paying their own. Your monthly payment on a loan of around $300,000 could be as low as $2,100.00 (see illustration below), which is comparable to what many renters pay in Long Beach and surrounding areas. Based on our last market update for Downtown and East Village, this is actually a great time to have your cake and eat it too with access to city life, public transport, and overall potentially pay less to own a home downtown than you would to rent one.
What Do You Need To Do To Qualify?
As with most mortgages, credit score is important, as well as your current income and debt. The minimum credit score is 680. There is an income limit, though many areas of Long Beach and surrounding community are exempt from the income limit. Check with your Realtor or your Guaranteed Rate mortgage lender to see whether this program could benefit you, and whether properties you’re considering would qualify as well.
Here’s a sample of what you could be looking at in pricing, but please note that interest rates change frequently, and this is not a quote.
Need someone to talk to about what you can afford, or want to pre-qualify for a loan? We’re happy to advise you on the neighborhoods and necessities you’re looking for in a home of your own, and local Guaranteed Rate lender Andrew Soss’ team is available to walk you through the steps.