Loan Programs
Helping You Find the Perfect Loan
We offer a wide range of loan programs to meet the varied needs and situations of our clients.
CONFORMING MORTGAGE
A conforming mortgage is a loan that conforms to either Fannie Mae or Freddie Mac’s lending guidelines. Conforming loans are the most popular mortgage type with over 63% market share in 2018 (source MBA). Private mortgage insurance or PMI is required for loans with less than 20% equity, and a minimum FICO score of 620 is typically required.
FHA:
A FHA loan is a mortgage that is insured by the U.S. Government (HUD). This loan is for owner occupied borrowers only. It requires a modest down payment of 3.5%, and has flexible income and credit requirements. A FICO score of 580 is typically required.
VA:
Many consider the VA Loan to be the best loan available today. These loans are guaranteed by the VA, and are available to eligible active military and veterans only. There is 0% down payment requirement and due to the government guarantee the interest rates are some of the lowest available. A FICO score of 640 is typically required.
USDA:
A VA loan is not the only 0% down loan available. The USDA loan is a 0% down payment loan too. A common misconception about the USDA loan program is that it’s only for farmers. That is not true, eligibility is determined by income and by location and there are several areas in Ventura County and the surrounding areas that are USDA loan eligible.
JUMBO:
Jumbo Loans, also called non-conforming loans, are mortgages that are larger than the conforming loan limits. Jumbo lenders usually have stricter credit and income requirements but you can still get a competitive interest rate and finance the home of your dreams.
REVERSE:
A reverse mortgage, or it’s official name the Home Equity Conversion Mortgage, HECM (pronounce heck-um), is a federally regulated program for homeowners aged 62 and older. It allows the equity in your home to pay you rather than you paying for the home.
ALL-IN-ONE:
An All-In-One Mortgage, also called an off-set mortgage, is a type of loan that is common in other parts of the world. This loan combines a mortgage with a checking account, a checkbook and a debit card. Deposits into your bank account lower your mortgage balance immediately, lowering your interest costs, and you retain access to that money via a line of credit. It’s a very interesting mortgage for someone who has a goal of paying off their mortgage faster.
RENOVATION LOANS:
A renovation loan, or rehab loan, allows you to finance the cost of home improvement into a new loan. If you found that “almost perfect” home in the right location that is selling at a reduced price because it needs a little rehab work, this is the loan for you. Renovation loans are also available for refinance transactions.
NON-QM LOANS:
Non-QM loans, (QM stands for Qualified Mortgage) are a category of mortgages that are suitable for consumers whose circumstances may not meet standard financing guidelines. Examples are: 1) Mortgages based on an analysis of a self-employed borrower’s bank statements instead of their tax returns. 2) Investment property loans based on the rental income of the property, no personal income used to qualify. 3) Mortgages based on borrower’s assets, no employment, no income and no debt ratios considered.
HOME READY & HOME POSSIBLE:
A conventional loan designed to meet the needs of low and moderate income borrowers (Income Limitations Apply). The loan has a smaller down payment requirement (often 3%), competitive rates and reduced mortgage insurance. It is well suited for first time home buyers, but being a first time homeowner is not required. A minimum FICO requirement is 620, but at 680+ pricing is terrific.
ARM’s – Adjustable Rate Mortgages
ARM’s are a type of mortgage where the interest rate is fixed for a period of time, usually 3, 5, 7 or 10 years, and then the interest rate adjusts. The benefit is that you begin with a lower rate, but the draw-back is that your rate is not fixed for the life of the loan. The rate may go up or down in the future. It is a smart option when you know you will only own the house for a few years.
California Down Payment Assistance Programs:
The California Housing Finance Agency (CalHFA) & The Golden State Finance Authority (GSFA) are two of the most popular down payment assistance programs available to California borrowers. These programs offer up to 5% in down payment assistance, second loans, grants and, in some cases, gifts. Restrictions apply, let us assist you in researching your options and eligibility.
Common Questions
You are correct, there are a lot of choices. It is our job to stay up to date on the latest loan programs and underwriting changes. Each type of loan has different benefits and advantages, so it’s important that we discuss your financial goals when we discuss your current situation so that we can best match you with loan programs that will get you to those financial goals.
There is not one right answer to this question. We believe in properly educating our borrowers and letting them decide for themselves. A benefit of a small down payment is that it allows you to control a large amount of real estate with a small amount of money. While the benefit of a large down payment is a smaller loan, which translates into a smaller monthly payment and reduced interest expense. There are benefits to both approaches.