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
FHA-EEM
- An FHA Energy Efficient Mortgage recognizes the energy savings
of a home. It allows the buyer (or homeowner who is refinancing)
to qualify for a larger mortgage to finance the construction or
installation of improvements that will increase the home’s
energy efficiency. Improvements might include insulation, new
energy efficient heating and air conditioning systems, new water
heaters, etc. The maximum amount is 5% of the property value (not
to exceed $8,000) or $4,000, whichever is greater. This loan can
be used on existing single family homes or two unit properties
(such as a duplex.) The home must be inspected by an energy
consultant. The fee for the inspection may be financed by the
loan. The rating report will determine if the cost of the improvements
(plus any maintenance costs) will increase the energy efficiency
of the home. If the improvements will save money on the utility
bills, the cost of the improvements may be financed in the loan.
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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.
For
Details
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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
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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 propert 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
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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
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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
CalHFA -
CalHFA 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
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
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
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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
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100%
FINANCING - A 100% financed loan will finance the total
cost of the property, (FHA, if qualified with the HART program).
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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% (FHA, if qualified with the HART program).
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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.
For Details
back
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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
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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
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HIGH DEBT RATIO LOANS - Borrowers having the ratio of their
monthly bills to their monthly income higher than 50% is concidered
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
