Think You Need Down Payment Assistance? Maybe Not!

True down payment assistance isn’t easy to come by, but that’s OK- 

For many renters in Alameda County, the dream of homeownership can feel out of reach. Perhaps you browse listings on realtor.com and feel like it’s impossible to come up with the hundreds of thousands of dollars you’d need to buy a house. But the fact is, you don’t need hundreds of thousands of dollars. And you don’t need to be able to afford the full mortgage on your own. Why not buy a duplex or triplex and be the change you want to see in the Bay Area? You can create affordable housing for both yourself and another person, group or family. Keep reading to learn more. 

Did you know you that it may be possible to buy real estate with as little as 3.5 down? It’s not a first time homebuyer program, you don’t have to qualify for special terms beyond having a good credit rating, and most banks can craft an FHA mortgage in your budget. 

If you’re planning to buy with just 3.5% down, that’s a $21,000 down payment on a $600,000 home—and part of that may be able to come from seller credits.

Here’s a smart strategy: Write an offer for $600,000 and request a $20,000 seller credit at closing. That credit can help cover your closing costs or even reduce your upfront cash requirement, making homeownership more accessible than you might think. Purchase a vacant duplex.

Let’s take a look at this example.

Let’s get your foot in the door—literally!

Key Details

Since the seller credit doesn’t reduce the loan, we still use $579,000 as the base loan amount for calculating the monthly payment.

Assumptions Needed:

We need to assume a few things to calculate the monthly principal & interest:

  • Loan Term: 30 years
  • Interest Rate: Let’s use 7% (you can refine this if you know your actual rate)

You might be thinking, “But affording $5000 per month is out of reach for an average income!” This is why buying a duplex is a great way to go. You may be able to collect rent from one unit to build equity and help with the monthly payment. Be the change you want to see in the world. If the second unit is, a 2 bed, 2 bath, it could rent for as much as $2800/mo, making affordable living possible for 2 families. 

 

Disclaimer:
This post is for informational purposes only and may not apply to every individual or housing situation. It is intended to illustrate one of many possible options available to prospective property investors. This content does not constitute financial, legal, or investment advice. Always consult with a licensed financial advisor, mortgage professional, or attorney before making any housing or investment decisions.