Anyone bought new homes in Irvine with less than 20% downpayment recently?

[pricedoutJay]

No one is a fan of PMI, but did anyone bought a new home in Irvine recently with less than 20% down?  How did a lender treat you and what was your condition, PMI removal after 22% equity or for the life of the loan? Would you do it again or recommend not to?  Thanks.

 

[eyephone]

I think the concesus of the forum is if you can't at least afford 20 percent down on a home, you shouldn't be buying.

 

[pricedoutJay]

Yes, and I agree.  I was exchanging emails with a lender preferred loan agent, and that person mentioned programs for less than 20% down payment for new homes.  They won't offer such a thing if there were no customers.  Also not everyone who bought home (even during peak years) went bankrupt or got foreclosed upon.  So I was wondering.  PMI is expensive and payments get higher with less down payment but I guess it depends on one's situation like if they are expecting increasing income in the near future, kids' age for schools, or financial priorities...

 

[jmoney74]

Save up more.. just tough it out.

 

[test]

Buying sooner is better than saving up and buying later, especially at the rate Irvine prices go up.

 

[eyephone]

Buying sooner is better than saving up and buying later, especially at the rate Irvine prices go up.

I guess you haven't notice the recent price reductions. But  you can buy at full price. 

 

[test]

Buying sooner is better than saving up and buying later, especially at the rate Irvine prices go up.

I guess you haven't notice the recent price reductions. But  you can buy at full price. 

People have been saying that since the days of the IHB forum, they're all regretting it now.

 

[eyephone]

Buying sooner is better than saving up and buying later, especially at the rate Irvine prices go up.

I guess you haven't notice the recent price reductions. But  you can buy at full price. 

People have been saying that since the days of the IHB forum, they're all regretting it now.

Let me update my previous statement, price reductions for resale homes. I think right now, new homes aren't lower their price.

My philosophy is buy when prices are low, sell when prices are high. Who knows if we are at the peak of this cycle. Summer sales weren't great, also low interest rates and no one is buying knowing the fact rates will rise.

 

[irvinehomeowner]

We would buy with less than 20% if we could find a home that would fit the guidelines.

Bought our first home with 5% down. If you can afford the mortgage and PMI, why not? Keeps you more liquid, and if you are moving within 5 to 7 years, most likely that 5% will become more with any equity gain (and lowered principal).

I think it just depends on your situation... but as long as you are being fiscally responsible... go for it.

 

[ps99472]

5%!!!  Forget Hidden Canyon, hello beachfront!

 

[Paris167]

If you are a physician they have 5% loan programs without PMI.

And not putting 20% down doesn't mean you can't afford the house. If you want more cash capital for other investments that give you a better ROI then by all means put 5% down and pay the higher monthly mortgage. 20% down is for the lay person who's biggest investment is their residence.

 

[jyeh74]

If you are a physician they have 5% loan programs without PMI.

And not putting 20% down doesn't mean you can't afford the house. If you want more cash capital for other investments that give you a better ROI then by all means put 5% down and pay the higher monthly mortgage. 20% down is for the lay person who's biggest investment is their residence.

Really. I know plenty cash buyers who pay off their homes and no, their home is NOT their biggest investment.

 

[Irvine1stTimer]

We are going to buy new House with 10% downpayment, there is a program called lender paid PMI, they will charge you 0.25% interest rates, and no PMI.

 

[Paris167]

If you are a physician they have 5% loan programs without PMI.

And not putting 20% down doesn't mean you can't afford the house. If you want more cash capital for other investments that give you a better ROI then by all means put 5% down and pay the higher monthly mortgage. 20% down is for the lay person who's biggest investment is their residence.

Really. I know plenty cash buyers who pay off their homes and no, their home is NOT their biggest investment.

Well that's why they can pay for their homes in cash, because of all their investments and businesses.  Some people just don't want to sink in $1.5 to 1.6 million in cash into a home, it's preference and to each their own. 

 

[lovingit]

If you are a physician they have 5% loan programs without PMI.

And not putting 20% down doesn't mean you can't afford the house. If you want more cash capital for other investments that give you a better ROI then by all means put 5% down and pay the higher monthly mortgage. 20% down is for the lay person who's biggest investment is their residence.

Really. I know plenty cash buyers who pay off their homes and no, their home is NOT their biggest investment.

Well that's why they can pay for their homes in cash, because of all their investments and businesses.  Some people just don't want to sink in $1.5 to 1.6 million in cash into a home, it's preference and to each their own.

I think people who have this much money, aren't usually buying in the Groves.  Emerald Bay, Crystal Cove are ones that come to mind. 

 

[Paris167]

If you are a physician they have 5% loan programs without PMI.

And not putting 20% down doesn't mean you can't afford the house. If you want more cash capital for other investments that give you a better ROI then by all means put 5% down and pay the higher monthly mortgage. 20% down is for the lay person who's biggest investment is their residence.

Really. I know plenty cash buyers who pay off their homes and no, their home is NOT their biggest investment.

Well that's why they can pay for their homes in cash, because of all their investments and businesses.  Some people just don't want to sink in $1.5 to 1.6 million in cash into a home, it's preference and to each their own.

I think people who have this much money, aren't usually buying in the Groves.  Emerald Bay, Crystal Cove are ones that come to mind.

That's true, or shady canyon. But then again some people live way below their means despite the contrary "American Way".  Which is why they're wealthy to begin with.  Look at warren buffet...

 

[irvinehomeowner]

Many FCBs don't like beachfront.... not close enough to ethnic markets and eateries.

 

[Tarmacpro]

Many FCBs don't like beachfront.... not close enough to ethnic markets and eateries.

I love how every post somehow or another eventually get's morphed into a FCB topic.  LOL!

 

[rnirvine]

Look into the piggyback mortgage with good income history and great credit you can do the 80/15/5(you need 5% down) or the more common one 80/10/10(you need 10% down).

The above two options do away with PMI and you basically get a mortgage for 80% of the price of the house, and get another loan for the remaining percentage your down payment won't cover.

Good luck!

 

[eyephone]

If you are a physician they have 5% loan programs without PMI.

And not putting 20% down doesn't mean you can't afford the house. If you want more cash capital for other investments that give you a better ROI then by all means put 5% down and pay the higher monthly mortgage. 20% down is for the lay person who's biggest investment is their residence.

There is a problem with your statement, because monthly CASHFLOW is important. If you only put 5% down, your monthly mortgage will be higher vs. someone that put down 20 percent and also you would have to pay PMI for the life of the loan for an FHA loan. (Unless you refi to conventional at a certain point)

In addition, if you spend more on your mortgage you have less diposable income for food, entertainment, etc.

Sure someone can invest that extra money in stocks instead of putting 20%down vs 5% down, but let's be honest not all the middle/lower class are not doing that.