Every once in a while, I come across something in real estate that genuinely surprises me. This week was one of those moments.
What if I told you there are currently 321 homes for sale across our mountain communities that qualify for a special mortgage program offering a lower interest rate than FHA financing, no mortgage insurance and as little as 3 percent down?
And, no, we’re not talking about foreclosures, distressed properties or fixers with faces only their mothers could love. These are good-quality homes, many move-in ready, priced from approximately $250,000 to $900,000.
With today’s mortgage rates continuing to challenge affordability, this is worth paying attention to.
Here’s what surprised me most. When I started looking at eligible properties, I found 163 in Big Bear, 40 in Green Valley Lake, 31 in Running Springs, 25 in Sugarloaf, 24 in Lake Arrowhead, 17 in Arrowbear, 11 in Cedar Glen, eight in Twin Peaks, and two in Rimforest. That’s a remarkable selection of homes for buyers who may have assumed homeownership was financially out of reach.
So, what’s the catch? There are a few qualifications, but they’re surprisingly straightforward.
You’ll need a minimum credit score of 640, or 660 if you’re purchasing a condominium. The property must be your primary residence, meaning you actually intend to live there full-time. You also cannot own another residential property when you close escrow. This isn’t financing for vacation homes, short-term rentals or investment properties. It’s specifically designed to help people become homeowners in the communities where they live.
Here’s where things get interesting. Unlike many conventional loans with small down payments, this program doesn’t require private mortgage insurance. That’s money you aren’t spending every month. Combine that with a discounted interest rate, potentially lower than FHA financing, and suddenly the monthly payment on a home you thought was out of reach might look considerably more manageable.
And this isn’t exclusively for first-time buyers. If you’re selling your current home and purchasing another primary residence, you may qualify too.
Now consider our current real estate market. We have substantial inventory, sellers who are increasingly willing to negotiate and buyers who have more choices than they’ve had in years. Pair those conditions with financing that reduces monthly housing expenses and you’ve got a pretty compelling opportunity.
Of course, not every buyer or property will qualify, and actual loan terms depend on individual circumstances. But that’s precisely why understanding your financing options before shopping for homes matters so much.
Sometimes affordability isn’t just about finding a less expensive house. It’s about finding a smarter way to finance the right one.
Want more information? Contact me and my team to get started.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs and the surrounding mountain communities. Reach her at (909) 442-1345, visit www.HomesInLakeArrowhead.com and follow her on social media, @TheresaGrantRealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
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