Hope that prices will go down. Hope that prices will go up. Hope that you’ll inherit enough money from the sudden death of a long lost relative to buy that dream home in La Canada, heck, Malibu.
Hope that you can still buy a decent place of your own, with little or no money down.
My, my, my. I will not get into the wherefore and wheretos of such a wish. The heart wants what the heart wants and no amount of financial wisdom will address that longing.
The sad, sad truth is that, even if you can obtain such a loan, it is not likely that you can buy a home of your choice. At least, not here.
Why is this true? These low and no down payment loan programs are government backed (VA, FHA and CalPers) and are capped at certain loan limits. They are aimed at entry leval buyers and, therefore, generally used in the low price ranges of under $400,000.
There isn’t a whole lot available in this price range, and, what exists is either “bad” for some reason or the investors are making CASH bids with no contingencies of any sort.
A government backed loan is not cash. In fact, these loans come with many requirements, fees and general complications. Since a seller of a decent, low priced home will likely have multiple offers to choose from, they are going to go with a high down payment offer.
Is it impossible? Of course not! Opportunity is everywhere and someone always wins the Lotto. It is just not easy and you have to really, really look.