Seller Credits in San Diego: How They Work and How Much Fannie Mae Allows
A seller credit is money the seller agrees to put toward the buyer's costs at closing, and on a Fannie Mae conventional loan the amount is capped at 3%, 6% or 9% of the price depending on how much you put down. The cap applies to the lower of the sales price or the appraised value, and the credit ca
Home Warranties in San Diego: What They Cover and What to Check Before You Buy One
A home warranty is a service contract that pays to repair or replace certain systems and appliances, and it is not the same thing as homeowners insurance. The California Department of Insurance, which licenses and regulates these companies, calls them home protection contracts and says every one con
Final Walkthrough Checklist for San Diego Home Buyers
The final walkthrough is your last look at the home before you sign, and its job is to confirm that agreed repairs are finished, that items the seller agreed to leave are still there and that the home is in the condition you expected. The CFPB says that if something is not right, you should contact
How to Read a Home Inspection Report in San Diego Without Panicking
A home inspection report lists what an inspector saw in the home on one day, and the easiest way to read it is to sort the findings into groups: safety, major systems and structure, repairs and routine maintenance. HUD says a typical single-family inspection takes two to three hours, and a typical f
Adjustable-Rate vs. Fixed-Rate Mortgages in San Diego: How Each One Works
A fixed-rate mortgage keeps the same interest rate for the whole loan, while an adjustable-rate mortgage, or ARM, has a rate that is set for an introductory period and then changes at regular intervals. The Consumer Financial Protection Bureau says an ARM's rate is based on an index plus a set margi
Down Payment Assistance Programs for San Diego Buyers: What Exists and Who Qualifies
San Diego buyers have three main public sources of down payment help: CalHFA, the County of San Diego and the San Diego Housing Commission, which runs a program for the City of San Diego. Each has its own income limit, price cap and rules, and the numbers below are what each agency's page listed at
Title Insurance and Escrow for San Diego Buyers: What Each One Does and Who Pays
Title insurance protects you if someone later finds a defect in the ownership history of your home, and escrow is the neutral service that holds the money and documents until the sale closes. In Southern California, the California Department of Insurance says they are usually handled by separate com
Gift Funds for a Down Payment in San Diego: Who Can Give and What Lenders Require
A relative can often give you money for a down payment, as long as the gift is documented and does not have to be repaid. At the time this article was written, Fannie Mae's guide allowed gifts to fund all or part of the down payment, closing costs or reserves on many purchases, and required a signed
Buying a Home in San Diego With Student Loan Debt: How Lenders Count It
Student loans count as a monthly debt when you apply for a mortgage, but how a lender counts them depends on your payment status. At the time this article was written, Fannie Mae's guide let a lender use the payment on your credit report, a documented $0 income-driven payment, or 1% of the balance f