LOAN TYPES

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 Fixed-Rate loans are the most popular type of mortgage loan because the loan is based on an interest rate and monthly Principle / Interest payment that does not change over time. The property taxes and insurance costs may fluctuate, but many borrowers find fixed-rate home loans to be the best mortgage for their needs because they can create a budget and rely on a steady payment. Fixed-rate mortgages are offered on all Conventional, FHA, VA and Jumbo loan products 

 Most company’s offer fixed-rate mortgages in terms of 15 or 30-years, however, you can ask for alternatives such as 10 or 20 year terms. The longer the term, the higher the interest rate will be. The longer term however, generally creates a lower payment because the payback is spread out over more years. 

• Minimum Down Payment: 3.50% which can come as a “gift” from approved sources
• Up Front MI of: 1.75%, can be added to Loan
• Monthly MI of: .85%
• Maximum Loan Amount SFR: Loan amounts are set by counties. In many northern California counties, the limit is $474,950. Loan amounts above $417,000 have additional costs and or rate increases. In the San Francisco Bay Area, FHA loan limits are as high as $625,500.
• Maximum Seller Concession: 6%
• Minimum FHA FICO requirement without additional down payment requirements is 580…but most companies require at least 620.
• Refinancing is allowed, at high loan to value ratios
• Both Fixed-Rate and Adjustable-Rate loans permitted
• Roof & Pest inspections not mandatory unless noted by appraiser or called for in contract
• No Income Limits
• Do not have to be a first-time buyer
• Must be owner occupied
• No requirement for reserves when purchasing a single family dwelling.
• Non-Occupying co-borrowers allowed
• Can utilize other state, county and city programs, and Energy Efficient Mortgage options
• FHA requires 90 days from date of trustee sale before purchase contract can be written unless REO is a federally chartered bank
• FHA Loans are Assumable

Federal Housing Administration loans (FHAs) are backed by the government so that approved lenders can offer home finance to buyers who aren’t eligible for a traditional loan.

The FHA doesn’t actually issue mortgages, it provides mortgage payment insurance so borrowers can get a home loan through an approved lender. Mortgage insurance premiums cover the cost of the Federal Housing Administration (FHA) guaranteeing your loan and protecting the lender from losses if you default.

FHA loans make first-time home loans and house ownership available to people who would otherwise not be able to afford them. They were designed for borrowers with a less-than-perfect credit rating but are today used by a broad range of people.

 Because there are a variety of FHA home loans, the credit restrictions are more flexible, though the loan requirements are more stringent. The main advantages are that you can apply with a lower down payment and a less-than-perfect credit score. 

 If you’re self-employed, you’ll have to provide two years of tax returns, and a statement of your financial position. Loans are sometimes available if you’ve been self-employed for less than two years, but you’d need to have had a good credit score preceding self-employment and be engaged in the same or a similar line of work. 

 Foreclosures and bankruptcy aren’t necessarily a bar to getting an FHA loan, so long as you have already started to rebuild your credit. In general, the lower your credit score, or the down payment you can afford, the higher your interest costs will be. It must be at least two years since you filed a Chapter 7 bankruptcy, and if you’ve been foreclosed on, it must have happened within the last three years. 

FHA loans help people get into the housing market by allowing borrowers with bad credit, no credit history, or who have had financial problems in the past, to get a loan. FHA loans are also excellent for buyers who want a first-time home loan or homeowners who want to move to a better property.

Today’s home buyers like this type of loan because it has more flexible underwriting rules, lower down payment options, and there is a wide range of loan plans to choose from.

Many FHA loans are available in throughout California, and all of them are made possible by MIP. Loan terms can vary between 15 to 30 years and borrowers need smaller down payments. This is perfect for buyers who need a first-time home loan in California. Funding for the down payment can also come from a gift.

FHA loans in California are available on many types of properties and one of the unique features of an FHA loan is the ability to refinance your current home. This is the easiest way to refinance as there is no credit qualifying, no income verification, and no appraisals.

Running a holiday sale or weekly special? Definitely promote it here to get customers excited about getting a sweet deal.