Sonoma County Real Estate Update: September 2023

September 28, 2023

Here are some affordable financial options for purchasing real estate in Sonoma County:

FHA Loans: These loans, insured by the Federal Housing Administration, allow for low down payments, often as little as 3.5%. Additionally, they have more flexible credit score and debt-to-income requirements compared to conventional loans.
USDA Loans: If you're interested in buying property in the more rural areas of Sonoma County, USDA loans require no down payment and offer flexible credit requirements. However, the property must be located in an eligible rural area.
Down Payment Assistance Programs: Sonoma County offers various down payment assistance programs, both through the County and nonprofit organizations. These programs can provide grants or low/no interest second loans to cover a portion of your down payment.
Negotiate with Sellers: In a buyer's market, negotiating with sellers for closing cost assistance or other concessions can significantly reduce your out-of-pocket expenses.
Shop Mortgage Rates: Collaborate with an experienced loan officer to explore multiple lenders and ensure you secure the lowest rates and fees possible for your specific situation. Small differences in interest rates and fees can accumulate significantly over the life of the loan.
Look for Low Down Payment Mortgage Options: Some conventional loans only require a 3-5% down payment for individuals with good credit. Alternatively, consider exploring alternative products like shared equity programs, which may offer lower down payment requirements.
Leverage Your VA Benefits: Qualifying veterans can benefit from VA loans, which necessitate no down payment and offer competitive interest rates.

The key lies in thoroughly exploring all available options, ranging from government programs to negotiating with sellers. These strategies can help reduce the initial cash required and ongoing monthly expenses, ultimately making homeownership more attainable for buyers in Sonoma County. If you have any questions or need further clarification, please feel free to reach out!

Paul Fehrman
DRE# 01065819

Lynn Fehrman
DRE# 01969747