Wondering about buying a dream house in Bakersfield for yourself and your loved ones but have no clue how much it costs? Don’t worry, we’ve got you covered. Read through this exciting blog in which a blend of opinions from a professional in the current real estate market named Nicole Hawks is considered to learn the solution.
Scratching your head by thinking about the price of houses at present times considering your income and savings is quite an ordinary practice for buyers. This can be as a consequence of some reasons.
One of the reasons is that you don’t know what’s going on in the real estate market so you have no idea what it looks like while paying for a house in terms of money. As a consequence, you worry if your savings are enough and how much you can afford. Similarly, you can’t decide if you want to have a pool and a solar in your dream house.
Keep reading this blog to be aware of some of the current listings in Bakersfield that might help you in your financial decisions.
Conventional vs. FHA Buyer
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People often wonder if they fall under the conventional buyer or FHA buyer category while trying to buy a house. My dear friend Nicole who is a lender and works with “The Mortgage House” explains this as conventional buyers have comparatively higher credit scores than FHA buyers.
Further, she explains that a slightly lower credit score than expected for conventional buyers will not make you fall under the FHA buyer category as every scenario is different. FHA buyers are the ones who try to get higher debt as their credit score is low.
Mortgage Insurance
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Another noticeable thing is that each time the down payment will be 5%, you’ll have to have mortgage insurance as well which will be in tiers. If you go up a little by 10% of the down payment, the factor will be lower, on 15% it will be even less but if your down payment is more than 20%, you can get rid of the mortgage insurance factor.
There are some recent listings in Bakersfield, let’s explore what they look like in each buyer’s scenario.
Bakersfield, CA 93312
Located at 9809 Balvanera Ave, Bakersfield, CA 93312, this house has three bedrooms and two baths with a solar payment lease and a pool. Let’s dive deep and see what else this house offers and what it looks like when buying it.
The solar panel as already said is on lease but it doesn’t mean its price accelerates with time. It was installed in 2016 and has had the same payment scale i.e. $238/month since then and will remain the same throughout the lease life.
What Does it Look Like for a Conventional Buyer?
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Now that we know the house has a solar panel on lease and a pool, if your credit score is around 720, you can be a conventional buyer for this one.
This looks like $3648 including all taxes and mortgage insurance with a 5% downpayment. Adding the solar at $238/month the other debt will become $1500/month which covers car, student loans, and credit cards.
As explained earlier the mortgage insurance factor will be lower if your down payment goes upwards which will make a difference in your payment.
Total Cost
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In this scenario, it is expected that you make $115,000/year of a personal or combined income, be it by a husband and child, by a couple, or alone by a husband.
What Does it Look Like for an FHA Buyer?
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Usually, FHA buyers have less credit score, so for the same house discussed above, if your credit score is less than 720, you must have private mortgage insurance.
Similarly, as with conventional buyer’s tiers, the FHA buyer’s mortgage insurance tier factor will also go down if the down payment goes up. Under FHA buyer, if you go for the standard 3.5% down payment, it will be $3715 for the house in the discussion.
Total Cost
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Considering the FHA buyer with $1,500/month discretionary debt along with the 3.5% down payment, the total estimated cost will be around $102,000/year.
Another flexibility with this one is that your debt ratio can be higher under FHA, so even if you make a little less of the estimated amount, it can work for you. Remember, every scenario is different.
Veteran Buyers
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I find the easiest way of serving my country, California, by helping veterans find and buy a home. For those who have no idea, I am here to help you out. You can reach me on the contact given below.
So for veterans, they can put in as much a down payment as they want but the expected down payment from them is ZERO. In addition, they are exempt from PMI requirements too.
Considering the house listing in the discussion, veterans have to pay the solar lease $238 a month as they are not exempt from that one. Combined, it will cost them $3597 with no mortgage insurance and no down payment.
Additionally…
The pictures and short videos of the house are attached in the video below. Do check that out to know that this is not the only home in the surroundings that looks like a beautiful and big one. The whole area has the same houses, so you also get a great neighborhood.
Conclusion
This blog mainly contains information about conventional, FHA, and veteran buyers to guide them on down payment, loan, and lease payments for solar for buying a house.
It is concluded that every person’s situation is different so you can only reach out to Nicole and Angel to find out your numbers. But the general idea says that a conventional down payment starting from 5% and an FHA down payment starting from 3.5% can include some discretionary debts as well.
Moreover, veterans don’t have to pay the downpayment so no mortgage insurance gives them a huge advantage.
A house listing is discussed above to let the audience know what it costs for all three types of buyers.
Check out the video below to find out more.
Video
