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VA - The purpose of the VA-guaranteed loan program is
to provide loans to veterans to purchase or refinance a home. Veterans
can obtain up to 100% financing on purchases. The benefits of a
VA loan are: no down payment, no cash reserves, existing home or
new construction, manufactured homes or lots, can be used for refinance,
no monthly mortgage insurance, no need to be a first time buyer,
can repay without penalty. The limitations are: co-borrower
must be spouse or have own entitlement, only open to veterans, active
duty military or reservists, funding fee is added to the loan and
the loan limit is $203,000. back to top
FHA - The
Federal Housing Administration (FHA), a wholly owned government
corporation, was established under the National Housing Act of 1934
to improve housing standards and conditions; to provide an adequate
home financing system through insurance of mortgages; and to stabilize
the mortgage market. FHA was consolidated into the newly established
Department of Housing and Urban Development (HUD) in 1965. Since
1934, FHA has been extremely successful in achieving these goals.
An FHA loan allows you to put a very low down payment on your home.
The maximum loan limit is based on the average cost of living in
your area. The FHA program for homebuyers is one of the most popular
due to the ease of qualifying and low down payments. back
to top
CalPERS - This loan program is for members of the California
Public Employees' Retirement System who are eligible for the 100%
Financing Program may be able to get into a home with no out-of-pocket
money. They can receive a secured CalPERS Personal Loan for
their down payment for up to 3% of the purchase price of the home.
The Personal Loan fulfills the minimum 1% down payment required
from the borrower's own funds. In addition, a 3% Silent Second
from California Housing Loan Insurance Fund (CaHLIF) can be used
for closing costs (recurring and non-recurring), permanent interest
rate buydowns, and down payment. Also, seller contributions
of up to 3% towards closing costs are allowed. (Note: the borrower
cannot receive any cash back) back to top
CalSTRS
- This loan program is for members of the California State Teachers
Retirement System and has competitive loan rates on a variety of
mortgage loan programs:
- CalSTRS Conventional
30-15 year Fixed Rate Program
- CalSTRS No Points,
No Fees Program
- CalSTRS/CaHLIF
Zero Down Preferred Program
All program interest
rates are set by CalSTRS. It has highly experienced Correspondent
Lenders with program participants. Also a free 60-day interest rate
lock upon application submittal and two "float down" options if interest
rates fall. Purchase or refinance plans are available. All
income derived from mortgage payments goes directly into the Teachers'
Retirement Fund.
PERS - Members
of the Public Employees' Retirement System are eligible for financing
home purchases and refinances up to $350,000. Members or annuitants receiving
benefits are eligible under the P.E.R.S. Member Home Loan Program. Public
employees who are participating in P.E.R.S. second tier retirement programs
and are not required to contribute to the system are considered active
members. An annuitant is a person who receives a monthly retirement benefit
from the retirement systems described above.
P.E.R.S.
loans are available to finance one to four unit properties, townhomes
and condos located in California. Borrowers must occupy the property for
at least 1 year. back to top
ACCESS GOLD
- This is a loan which carries a second loan for up to 5% of the
value of the property which can be used for the down payment and closing
costs. The total of the first and second loan can be up to 102%
of the property value. back to top
MTA LOANS -
The MTA ARMs interest rate adjustments are based on a 12-month moving
average of the 1-Year Constant Maturity Treasury yield. Because
the MTA Index is an average, it will move slowly and smooth-out
any large 1-Year CMT fluctuations that might occur.
Since
the interest rate changes more frequently that the payment amount,
and payment increases are limited, the loan's monthly interest could
exceed the payment amount. Any such difference is added to the loan
principal - resulting in negative amortization. Of course you could
avoid negative amortization by making sufficiently higher loan payments.
back to top
FARM LOANS
-USDA Rural Development's Guaranteed Rural Housing (GRH) Program
is designed to meet the needs of rural home buyers who have the
necessary income and credit history required to qualify for a conventional
mortgage, but not the down payment. The GRH program encourages lenders
to provide financing to qualifying home buyers by reducing the amount
of risk involved for the lender. back to top
COFI - The
cost of funds index (COFI) is not an interest rate. It reflects
the average interest paid by savings institutions for their various
sources of funds over a specified period of time. Deposits in checking
and savings accounts including certificates of deposit, money market
deposit accounts, transaction accounts, and passbook accounts are
the primary source of funds for most savings institutions. Other
sources of funds include loans obtained through credit programs
(known as "advances") and money borrowed from other financial institutions.
In general,
the COFI does not move up or down as rapidly as market interest rates
(such as the prime rate, the discount rate, or Treasury bill rates) because
many savings institutions rely on fixed rate deposits of medium- and long-term
maturities as a primary source of funds. Since rates on these deposits
are not affected by changing market interest rates until the deposit matures,
the total interest expense paid by savings institutions in a particular
month reflects, to a significant degree, interest rates that were prevalent
in previous months or years. back to top
CHAFFA -
CHFA or ‘CHAFA" as it is sometimes known, is operated by the
California Housing Finance Authority. It is designed to provide
up to 100% of home loan financing to prospective eligible first-time
homebuyers. It generally consists of a standard 97% EHA - CHFA fixed-rate
30-year mortgage and a 3% CHFA down payment assistance second mortgage,
which is also called a "sleeping" or "silent" second. The second
mortgage is offered for 30 years at 3% simple interest. All payments
are deferred on this second mortgage until one of the following
happens: the CHAFA first mortgage becomes due and payable; the first
mortgage is paid in full or refinanced; or, the property is sold.
back to top
FREDDIE MAC GOLD -
Freddie Mac (Federal Home Loan Mortgage Corporation) is a stockholder-owned
corporation established by Congress in 1970 to support home ownership
and rental housing. Freddie Mac purchases single-family and multifamily
residential mortgages and mortgage-related securities, which it
finances primarily by issuing mortgage passthrough securities and
debt instruments in the capital markets. Freddie Mac guarantees
these securities and mortgage lenders sell their loans to Freddie
Mac and use the proceeds to fund new mortgages, which in turn increases
the money supply to homebuyers. The Company does not make loans
directly to homebuyers, but puts private investor capital to work
for homebuyers in general. back to top
JUMBO LOANS -
Offers 30 and 15 year fixed rate mortgage with full document, alternate
documentation and limited documentation. This product is for our elite
borrower’s, therefore, offers higher loan amounts and very competitive
pricing.
Cash out and No cash
out refinance are allowable. Single family detached, Condo's,
PUD's and 1 unit second homes can be financed with no prepayment
penalty. Secondary financing is allowable on lower LTV's.
back to top
1% DOWN
PROGRAMS - There are several programs available that allow financing
a property loan with a minimum of 1% down. Some may or may not require
the buyer to pay the closing costs, buy down points or higher interest
loans. back to top
STATED INCOME
- Loans where your income is not requested or verified for as little
as 10% down are stated income loans. There are several varieties
of the "no-doc" loan today. Basically the type of loan that is best suited
for a particular borrower depends on that borrower's situation. Some borrowers
choose not to disclose employment, income or asset information, while
others may be willing to disclose employment and asset information but
not income. Still others might be willing to disclose even income but
select a program that doesn't calculate debt-to-income ratios allowing
those borrowers to exceed the traditional guidelines in order to qualify
for a larger mortgage amount. With all the different variations of the
no-doc loan, there is definitely a mortgage program for today's non-conventional
borrowers. back to top
FANNIE MAE FLEX -
Fannie Mae buys single-family home loans from mortgage bankers,
savings and loan associations, commercial banks, credit unions,
state and local housing finance agencies (HFAs), and other financial
institutions thereby providing a steady stream of mortgage funds
available for lending to America's homebuyers. back
to top
100% FINANCING
- A 100% financed loan will
finance the total cost of the property, usually leaving only the closing
costs to be paid by the borrower. back
to top
ZERO
DOWN PROGRAMS - Loans requiring No Down Payment maximum financed
amount can include closing costs and prepaid items to a maximum
loan to value of 103%. back to top
CAL VET -
CAL-VET is a program very similar to the VA programs. We can provide
all the information that you will need to determine if a CAL-VET
loan is a good option for you.
Some to
the features of the program are: 6.95% interest rate; Peace time era veterans
are eligible; $250,000 maximum loan amount; 2% down payment; Low loan
fees; 60 to 75 day loan processing; Use your CAL-VET loan again, if qualified;
Construction loan; Low cost insurance program. back to
top
MANUFACTURED HOMES - Most loan programs can be used for the
purchase of manufactured homes providing they are on a permanent
foundation and were constructed after 1976. back
to top
FUTURE VALUE LOANS - A borrower may acquire a loan on construction
or improvement of a property based on the value of that property upon
completion of the construction and/or improvements. back
to top
HIGH DEBT RATIO LOANS - Borrowers having the ratio of their monthly
bills to their monthly income higher than 50% is considered a high debt
ratio. Loan programs are available for these borrowers, allowing
them to finance the purchase of a home or property. back
to top
SELF EMPLOYED LOANS - This loan is designed mainly for self employed
borrowers who minimize their income on their tax returns, or may simply
not wish to disclose their income for the purpose of doing a loan. They
can qualify by their stated income, or with bank statements. back
to top
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