Loan Programs

loan_programs

Conventional Loans:

These loans are for purchase or refinances. A conventional loan is a loan up to the current conventional loan limit set by the government. Currently it is either $424,100.00 or up to $625,500.00 depending upon which county your property is located in. Conventional loans are offered at a better interest rate than a jumbo loan which you will see described below.

HARP 2.0 FANNIE MAE & FREDDIE MAC STIMULUS RELIEF REFINANCES:

These two programs allow for UNLIMITED loan to value refinances. Many conditions apply. Some of the conditions are no cash out and no combining first and second mortgages. Please call or email to discuss.

Jumbo Loans:

These loans are for purchase or refinances as well. Jumbo loans are loans that exceed the conventional loan amounts currently set above $417,000.00 or $620,000.00 depending upon some factors that we would be happy to explain to you. Basically due to the fact that a jumbo loan is more of an investor driven loan they are at a higher interest rate than a conventional loan.

FHA Loans:

An FHA loan is a government insured loan and will allow a lot of latitude in the prequalification process that a conventional or jumbo loan will allow. They are used for purchases and refinances as well. The benefit of an FHA loan is that they will allow for minimal down payment of 3.5%, or less if combined with another program, they do not require reserves left over in your account after close of escrow, they allow for a non-occupant co-borrower to asset you in qualifying for a home, all of the 3.5% down payment and all of the closing costs can be a gift, seller contributions are allowed up to a maximum of 6% of the purchase price for closing costs, you only need 2 years away from a bankruptcy instead of 4 to 5 years with a conventional loan, and a lot of other great benefits. This is a great first time home buyer loan (although you do not have to be a first time home buyer) and not all lenders are approved for FHA loans and may not offer them to you as an option because of this. We have been FHA approved for over 14 years. The FHA guidelines for home buying and refinancing can be found by going to the FHA website here.    http://www.hud.gov/buying/index.cfm

Reverse Mortgages:

They are not what you may think they are. The original version of this type of loan was not a good loan, they were called Equity Shares, and some lenders are still selling this product. In an Equity Share you sign over your interest in the property to the lender which you never want to do. With this same type of mortgage when you sold or passed away your equity was gone. NOT SO with a Reverse Mortgage. The Federal Government oversees and insures this loan through FHA and HUD. In a Reverse Mortgage you never sign over your ownership interest. You own the home just like you do now if you have a loan on it. The difference is that with a Reverse Mortgage it pays off any debt you have against the house, eliminating your mortgage payment forever, and you can live in the home mortgage payment free for as long as you live in the house! When you sell or pass away there will be remaining equity in the home that will be yours to keep or leave to your heirs. In fact we can run an amortization schedule for you that will show you that in most cases the appreciated value over the years will offset the debt leaving you as much or more equity than you have now. If you are 62 years old or older this might be the best thing since ice cream for you! Be sure to contact one of our Reverse Mortgage specialists for more information. Just think, no more house payments for the rest of your life, and get a lump sum of cash or a monthly income on top of that! If you own your home free and clear you can access the cash in your home and never have a mortgage payment either!

DOWN PAYMENT ASSISTANCE PROGRAMS & COMMUNITY DOWN PAYMENT ASSISTANCE PROGRAMS:

Some of the most popular programs are SHRA & NHF. CalHFA has one also. They all have income limits as well as other restrictions. We will discuss the availability when we talk.

VA Loans and CalVet Loans:

A Veterans Administration loan is a loan made possible by the federal government for military personnel which are currently active duty or not. It provides for 100% financing and with a willing seller and a VA No No, or a no down payment and no closing costs loan. VA No No’s do require the seller to pay for all the costs associated with the loan. If you are a veteran and you have money to put down then a VA loan may not be the best way for you to go. We will discuss this when we talk. A CalVet loan is also for Veterans and offers a somewhat better rate but the way that title is held is very different than any other type of loan. Again, we will discuss this when we talk.

USDA Guaranteed Rural Home Loan Program:

loan_programs2United States Department of Agriculture loan is a loan made possible by the federal government for homes in rural areas for buyers with household income within their limits. This program offers 100% financing and allows the seller to help with closing costs. Please call to see if you qualify. El Dorado County (except for a few areas) is one of the many qualifying areas. There are also some parts of Sacramento & Placer counties, among others that also qualify.

Construction Loans:

The construction loan industry is going through a number of changes. For the most update information, please call.

Land Loans:

Land loans may still available and are also constantly changing, please call to discuss.

CalPERS Loans:

CalPERS loans are available for state employees who participate in the PERS retirement (Public Employees Retirement System). This program has been discontinued by PERS, please call or email to discuss other options.

CalSTRS Loans:

CalSTRS loans are available for California State Teachers and school employees who participate in the STRS retirement (State Teacher’s Retirement System). This program has been discontinued by STRS, please call or email to discuss other options.

CalHFA Loans:

These loans are for first time home buyers (who have not owned a home in the last three years) and there are several variations, please call or email to discuss.

FANNIE MAE HOME PATH LOANS:

This is a special loan program for designated properties currently owned by Fannie Mae.
This program has been discontinued by Fannie Mae.

Contact us for more info