3 Loans To Purchase Townhomes In Aliso Viejo

Dated: 12/10/2017

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3 Loans for Buying Townhomes in Aliso Viejo

Looking to buy in Aliso Viejo? Well if you're new to the area, or if you'd you've lived there your whole life you might still be surprised at the price of HOA fees that are added onto a potential mortgage payment. If you're looking to buy a townhome you're most definitely going to be paying an HOA fee of several hundred dollars a month in addition to property taxes, insurance and the principal and interest on your home loan. 

However, with that said there are some creative ways that you can get into a nice townhome in the Aliso Viejo area without having to destroy your bank account. 

FHA Loan

One strategy is to use an FHA loan, which only requires that you make a 3.5% downpayment when purchasing the property. As long as you have good enough credit, this is oftentimes a great option for first time home buyers who might not have as much capital. Keep in mind though that as a general rule, the less money you put towards a downpayment the higher your mortgage payment will be. 

Another factor to consider when opting to use an FHA loan, is that you will need to pay a "Mortgage Insurance Premium" on top of your mortgage payment. This premium essentially insures the lender against a loss in the event that you foreclose on a property. Any time that you're putting less than 20% down when purchasing a home, a bank will usually require that you pay some type of "mortgage insurance premium."

10% Down Conventional Loan with HELOC

Another financing strategy that can be used for townhomes in Aliso Viejo is the conventional 10% down payment loan. As the name implies, with this loan you will be making a 10% down payment. In addition, you'll have the option of adding a Home Equity Line of Credit, which is second loan secured the property. Basically, 80% of the home value would be placed on the first mortgage and 10% of the home value would be placed on the Home Equity Line of Credit, which would have an adjustable rate.

With this loan, you wouldn't have to pay any mortgage insurance premium on your monthly payment, which could result in lower your monthly costs substantially. If you have the money available, it's definitely worth taking a look at this loan with a professional to see if it makes sense.

20% Down Payment Loan

As the name again implies this conventional loan will require you to make a 20% down payment on the purchase price of the property. Assuming that you have the capital available, this is probably you're best bet as you'll be able to keep your mortgage payment at a minimum by not having to pay any mortgage insurance. With conventional loans you'll have to make sure that your credit is high enough to qualify because the requirements are more strict when compared to an FHA loan.

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Jimmy Hoey Cal BRE# 01802485

I spent my youth in England and Ireland. My father was an Industrial Construction Manager which moved us every couple of years to numerous cities, Manchester, London, and Wales. Growing up in differen....

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