CA Mortgage Loan
Programs and Definitions
Just click
on the loan type your interested in for more information!
Conventional
Mortgages
Conforming
Mortgages
Non-Conforming
Mortgages
Residential
Mortgages
FHA/VA Mortgages
Fixed
Rate Mortgages
Adjustable
Rate Mortgages
Jumbo Mortgages
Construction
Mortgages
Purchase
and Remodel Mortgages
Self
Employed or no Income/Asset Verification
100%
Financing Mortgages
80-20
Mortgages
Commercial
Mortgages
Part
/ Full Time Farm Mortgages
Portfolio
Mortgages
Private
Investor Loans
Private
Equity Loans
Hard
Money Loans
Please Note: The information contained
on this website is for informational purposes only.
Loan programs change frequently! We can not guarantee
that all programs are available at all times. Also some
programs are available based on the borrowers credit
and income situation!
Conventional
Mortgages: are any mortgage that is not a VA
or FHA loan. Conventional mortgages may be conforming
or non-conforming.
Conforming
Mortgages: Any loan that conforms to the underwriting
guidelines of Fannie Mae or Freddie Mac is called a
"conforming loan". Guidelines such as the
maximum loan amount, down payment percentage, borrower
and co-borrower credit, borrower and co-borrower income
requirements, and appropriate property types.
Non-Conforming
Mortgages: Any loan that doesn't conform to
the underwriting guidelines of Fannie Mae or Freddie
Mac is called a "non-conforming loan".
Residential
Mortgages: Loans for primary and secondary
residences.
FHA/VA
Mortgages: The Federal Housing Authority backs
mortgage loans for people who don’t fit the traditional
underwriting criteria for getting approved for a home
of their own.
People that benefit from these loans are first time
home buyers, people who don’t have much credit
history, and people who have had credit issues in the
past but have everything back on track.
The interest rates on FHA loans are comparable to conventional
rates.
FHA can lend up to 97% of the home value, and can be
refinanced any time without a pre-payment penalty, and
without having to qualify all over again. As long as
you pay the mortgage on time, you can do a streamline
refinance anytime interest rates fall.
In many cases, in high interest rate environments,
FHA loans are considered superior to conventional loan
because they can be refinanced so easily when rates
drop.
FHA also allows gift funds from family members for
the down payment, and also allows home sellers to pay
for closing costs, so you don’t have to wipe out
your bank account to get into the home of your dreams.
Because FHA loans are designed to help an underserved
segment of the population, there are FHA loan limits
for each county in the country, usually somewhere between
$120,000 and $180,000. Call a representative today and
see if you can take advantage of an FHA loan and what
the loan limit is for your county!
Commercial
Mortgages: Loans to finance commercial properties.
For multi-family homes and apartment buildings, offices,
industrial buildings, and retail development plans.
Loan to Value typically up to 80%. We can also finance
raw land depending on the property and situation.
Construction
Mortgages: With one time closing. We arrange
permanent financing prior to you acquiring your building
lot and starting construction.
Part
Time Farm and Full Time Farm Loans: Loan programs
are available for working farms. Borrowers may qualify
based on operating and borrowers income. Loan programs
for part time farms typically require the borrower to
have a strong income and high credit rating.
Purchase
and Remodel mortgages: use the equity difference
between the purchase price and the appraised value of
the property to finance home improvements.
100%
Finance mortgages: 100% financing mortgages
are available for some borrowers. Typically these programs
require a minimum credit score of 700 and have other
requirements/restrictions that apply. Contact us for
details!
80-20
Mortgages: involve an 80% first lien mortgage
with a second 20% mortgage at a slightly higher mortgage
interest rate. 80-20 programs are also available to
borrowers with "less than perfect credit".
80-20 programs require specific credit scores and also
certain underwriting requirements may apply.
Fixed
Rate Mortgages: Fixed rate mortgages have an
interest rate that is valid for the life of the loan.
Fixed rate mortgages are available for 10, 15, 20 and
30 year terms.
Adjustable
Rate Mortgages (ARM): Adjustable rate mortgages
available have a fixed interest rate for the the start
of the term and a floating rate thereafter. Once the
initial period expires (typically 1, 3, 5 or 7 years
depending on the program) the adjustment occurs either
once every 6 months or once every year (depending on
the program) and fluctuates following published financial
indexes.
An ARM that adjusts every 6 month will
normally have a 1% cap (limit) per adjustment and a
6% cap (limit) over the life of the loan. Caps vary
from mortgage program to mortgage program. Contact us
for specifics.
An ARM that adjusts every 1 year will
normally have a 2% cap (limit) per adjustment and a
6% cap (limit) over the life of the loan . Caps vary
from mortgage program to mortgage program. Contact us
for specifics.
Jumbo
Mortgages: These are available for borrowers
purchasing or refinancing homes over $333,700 for 1
& 2 unit properties, and higher limits are available
in Alaska and Hawaii, and for 3 & 4 unit properties.
Jumbo mortgages may have different underwriting requirements
which vary from one loan program to another. Some options
that are available for jumbo loans are: no income verification
and no asset verification.
Portfolio
Mortgages: Most loans today are sold on the
secondary market to either Fannie Mae, Freddie Mac or
number of other institutions.Some loans are kept by
the bank that originally funds the loan. Loans kept
by the original funding bank are called portfolio loans.
Typically when a lender intends to keep a loan in their
own portfolio they can be more flexible on the underwriting
requirements as the loan does not have to fit the necessary
requirements to be sold on the secondary market.
Private
Investor Mortgages, Private Equity Loans, Hard Money
Loans: Are loans made by private investors
with their own money. Typically they are for shorter
terms and carry a higher interest rate than conventional
conforming mortgages however, the private lenders can
be much more flexible with their lending as they do
not have to follow the underwriting requirements of
conforming loans. If they find the investment sound
and the asset value adequate they may make the loan.
Self
Employed or No Income/Asset Verification: Typically
a borrowers income is verified either through the last
2 years W2's or in the case of the self-employed their
last 2 years tax returns. However in certain cases borrowers
prefer not to have their income verified. Depending
on the borrowers personal situation they may not show
enough net income on their tax returns to qualify for
the loan they need.
Some loan programs have No Income Verification
options. Typically the interest rates are slightly higher
than conventional income verified mortgages. Some "No
Income Verification" programs require the borrower
to sign IRS form 4506 or 8821 which allow lenders to
request your tax returns directly from the IRS.
Programs are also available that do
not require verification of assets. These programs are
used by individuals who do not want to disclose their
assets.
CA Mortgage & Refinance California
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