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Financing in Los Angeles: Your Options Explained
Discover the best way to fund for your Los Angeles dream home.
What's My Budget?
Credit Score
Your credit score plays a major role in determining your loan interest rate. A higher credit score translates to lower interest payments over the life of your loan, saving you thousands.
Pre-Approval
Getting pre-approved for a mortgage shows sellers that you're a serious buyer and gives you an edge in a competitive market. Lenders, like my friend Dustin at Home Financing Inc, will assess your readiness (savings, debt to income ratio, etc) and provide an estimate of how much you can borrow.
Borrowing Budget
Every situation and lender is unique, but a rough formula for someone with good credit and a low debt to income ratio is…
Income x 7 = Loan Amount
Ex: A person (or couple) with an annual income of $100,000 can qualify for a $700,000 loan.
Conventional Loans for LA Condos: Requirements & Benefits
Low Down Payment
Conventional loans typically require a 20% down payment, but options exist for lower down payments with private mortgage insurance (PMI).
Flexible Terms
Conventional loans offer a wide range of loan terms, allowing you to customize your payment schedule and interest rate to suit your needs.
Competitive Rates
Conventional loans often have lower interest rates compared to other loan types, saving you money over the long term.
FHA Loans: A Great Option for First-Time Buyers
Low Down Payment
FHA loans require a lower down payment than conventional loans, making them accessible to first-time buyers.
Flexible Credit Requirements
FHA loans have more lenient credit score requirements, making them an option for borrowers with less-than-perfect credit history.
Down Payment Assistance
Some programs provide down payment assistance for first-time buyers who qualify, further reducing the initial investment required.
VA Loans: Financing for Veterans in Los Angeles
Veterans Affairs (VA) loans are available to active duty military personnel, veterans, and surviving spouses, offering competitive rates and low down payments.
With a VA loan, you can finance a 100% purchase of your condo, eliminating the need for a down payment.
VA loans often have lower interest rates and closing costs, making homeownership more affordable for veterans.
Jumbo Loans: For High-End Condo Purchases
1
Larger Loan Amounts
Jumbo loans exceed standard loan limits, allowing you to finance higher-priced properties in Los Angeles's competitive market.
2
Tailored Terms
Jumbo loans offer flexible terms to meet your specific needs, including adjustable-rate mortgages (ARMs) or fixed-rate mortgages.
3
Specialized Lenders
Jumbo loans are typically offered by private lenders or specialized mortgage companies, so it's crucial to choose a lender with experience in this niche.
Comparing Loan Rates & Finding the Best Lender
1
Rate Shopping
Use online tools and speak with multiple lenders to compare rates and fees, securing the best deal for your specific situation.
2
Credit History Review
Review your credit report and understand your score, as it significantly influences your loan interest rates. You may need to improve your credit score before applying.
3
Loan Terms & Fees
Carefully read the loan terms and compare closing costs, including origination fees, appraisal fees, and title insurance. Consider the total cost over the life of the loan.
Next Steps: Get Pre-Approved and Start Your Search
Pre-Approval
Get pre-approved for a mortgage to determine your borrowing power and show sellers you're a serious buyer.
Contact Mark Herrera for referrals to reputable lenders with great rates.
Find a Real Estate Agent
Connect with a trusted realtor specializing in Los Angeles condominiums to guide you through the search and negotiation process.
Contact Mark Herrera to start your search.
Explore Condos
Begin your search and explore properties that align with your budget, desired location, and lifestyle preferences.
Contact Mark Herrera to setup private tours ready to make an offer.
Let's Find Your Perfect Condo
Buying or selling a condo is different from handling a single-family home. You need an agent who understands the unique market dynamics, HOA regulations, and lifestyle considerations that come with condo living. Mark Herrera will be happy to help you!
Contact Mark Herrera
Mark Herrera is a proud member of the National Association of Realtors, the California Association of Realtors, the South Bay Association of Realtors, and Keller Williams Realty. Each Keller Williams office is independently owned and operated.