This is a great story on a number of different levels. A student rises above growing up under rough circumstances, dad deported due to troubles with the law, to lead a seminar for teachers on how to buy homes, and also earn a scholarship to UC Berkley.
I think a lot of people don't realize that there a number of avenues to buying property, whether it's an investment property or your first home. It pays to get the ball rolling and keep your eyes and ears peeled. Attend a seminar when you have the chance. Set goals and create a plan.
Lisa Shafer's monthly mortgage and tax bill for her $383,000 condo will be about $1,880. After income tax savings, she thinks it will come to about $500 more than the $1,022 she pays now for rent. She plans to get summer jobs to boost her income.
Down payment: $30,500
$10,000 from IRA (the Internal Revenue Service allows first-time home buyers to withdraw this amount without penalty)
$5,500 from savings
$15,000 gift from her parents
Loans: $352,500
$250,000 first mortgage from CalHFA at 5.75 percent (lower rate for working in a low-performing school)
Three other "deferred payment" loans do not have to be paid for 30 years or until she sells her condo.
$75,000 from Oakland first-time home buyers program, simple interest of 3 percent
$15,000 from CalHFA teacher program, interest of 5 percent first year, 4 percent second year and 0 percent thereafter
$12,500 from CalHFA High Cost Area Purchase Assistance Program, simple interest of 6.75 percent
Commission: Shafer did not use a real estate agent and negotiated with the condo builder to credit her the 3 percent commission an agent would have received.
Incentives: $25,000 in builder incentives covered three years of condo fees, closing costs and appliances.
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