FINANCING
MORTGAGE OPTIONS
30-Year Fixed Rate Mortgage
-
The monthly principal and interest rate will stay the same for the whole loan term.
-
Taxes and insurance rates will change over time.
-
The longer length of the loan brings your monthly payment lower.
15-Year Fixed Rate Mortgage
-
Typically have lower interest rates than 30-year mortgages because of the shortened term duration.
-
The payment each month is higher, however a lower interest rate saves you money in the long run.
Adjustable Rate Mortgage
-
These will have lower initial interest rates.
-
The rate is flexible, meaning it will move up or down in accordance with the broader market.
-
Suitable for someone who plans to live in the home for only a few years.
LOAN OPTIONS
FHA LOANS
​
These loans are popular amongst first-time home buyers. They require a 3.5% down payment and are forgiving for buyers with not perfect credit. It allows the down payment to be a gift from a relative. An annual mortgage insurance premium is required monthly because of the smaller down payment made.
FHA LOANS
VA LOANS
​
One of the best loan options, because it requires no money down. Borrower must be serving in active duty or an honorably discharged veteran; only some cases qualify a spouse. There is no mortgage insurance required for VA loans, like other government loan options.
VA LOANS
USDA LOANS
​
These loans are provided by the United States Department of Agriculture to borrowers who live in rural areas with medium-low incomes. Another great option to pay zero down when purchasing. There is no specific minimum credit score to apply; credit history is reviewed. They have an upfront guarantee fee at closing time.
USDA LOANS
HOMEBUYER PROGRAMS
​
The California Housing Finance Agency helps moderate-low income residents acquire safe and affordable housing. Borrower can combine this with a standard mortgage. Two down payment assistance programs are offered:
​
-
MyHome Assistance Program
-
Zero Interest Program
HOMEBUYER PROGRAMS
JUMBO LOANS
​
Jumbo loans do not conform to loan limits allowing borrowers to receive a larger loan amount. These are available in amounts up to $3 million. Any loan larger than the limit is considered a jumbo loan; limits vary by county. Great when you're ready to make a large purchase.
JUMBO LOANS
CONFORMING LOANS
​
Also called a conventional loan, this loan meets guidelines set by two government-sponsored entities that acquire majority of mortgages after they are made. One restriction on these loans is their size. Larger down payments and higher credit scores are needed to apply. This loan is better for an experienced buyer.
CONFORMING LOANS
