Loan Types

Fixed-Rate Loans

 

Fixed-Rate loans are the most popular type of mortgage loan because the loan is based on an interest rate and monthly Principle / Interest payment that does not change over time. The property taxes and insurance costs may fluctuate, but many borrowers find fixed-rate home loans to be the best mortgage for their needs because they can create a budget and rely on a steady payment. Fixed-rate mortgages are offered on all Conventional, FHA, VA and Jumbo loan products.

Most company’s offer fixed-rate mortgages in terms of 15 or 30-years, however, you can ask for alternatives such as 10 or 20 year terms. The longer the term, the higher the interest rate will be. The longer term however, generally creates a lower payment because the payback is spread out over more years.

FHA

  • Minimum Down Payment: 3.50% which can come as a “gift” from approved sources

  • Up Front MI of: 1.75%, can be added to Loan

  • Monthly MI of: .85%

  • Maximum Loan Amount SFR: Loan amounts are set by counties. In many northern California counties, the limit is $474,950. Loan amounts above $417,000 have additional costs and or rate increases. In the San Francisco Bay Area, FHA loan limits are as high as $625,500.

  • Maximum Seller Concession: 6%

  • Minimum FHA FICO requirement without additional down payment requirements is 580…but most companies require at least 620.

  • Refinancing is allowed, at high loan to value ratios

  • Both Fixed-Rate and Adjustable-Rate loans permitted

  • Roof & Pest inspections not mandatory unless noted by appraiser or called for in contract

  • No Income Limits

  • Do not have to be a first-time buyer

  • Must be owner occupied

  • No requirement for reserves when purchasing a single family dwelling.

  • Non-Occupying co-borrowers allowed

  • Can utilize other state, county and city programs, and Energy Efficient Mortgage options

  • FHA requires 90 days from date of trustee sale before purchase contract can be written unless REO is a federally chartered bank

  • FHA Loans are Assumable

USDA Loans

  • 100% financing with no down payment for certain qualified transactions!

  • Property must be 8 acres or less

  • Property can’t have a pool

  • Properties must be located in eligible rural areas (generally towns with a population of 20,000 or less that are removed from an urban area)

  • Income limits are 115% of the U.S. Median Income (for most counties, the 4 person household income limit is $65,000 maximum)

  • No cash reserves are required

  • Borrowers are not required to be first time homebuyers

  • No Loan limit restrictions

  • Minimum credit score of 620 from most lenders

CalHFA

  • 30-Year Fixed-Rate Mortgage at below market rates (in most cases) for first-time buyers

  • Government Insured/Guaranteed Loans

  • 30-Year Fixed Government Insured/Guaranteed Mortgage. This program is for mortgage loans that are insured or guaranteed by FHA, VA or USDA and features a 30-year term with a low, fixed interest rate

  • Real Estate Owned (REO) Loan Programs

  • CalHFA Community Stabilization Home Loan Program. This program helps first-time home buyers purchase vacant home that are owned by participating financial institutions in certain area of California.

VA

  • One of the only 100% LTV programs around. No down payment required

  • Loan amounts above $417,000 require a downpayment

  • Must have DD214 with honorable discharge

  • Must be owner occupied

  • Bankruptcy and foreclosures do not necessarily eliminate veteran from qualifying– looking for 2 years in most cases

  • No cash reserves required

Reverse Mortgages

  • Must be 62 years of age, or older

  • Must be owner occupied

  • Must be able to demonstrate your ability to pay your property taxes and insurance

  • Available for most property types – Single Family, FHA approved condominiums, PUD’s and manufactured homes that meet FHA and lender guidelines

  • Can be used as a tool for guaranteed income, periodic payment of obligations, or in purchasing a home with no mortgage payment

Adjustable-Rate Loans

An adjustable rate mortgage differs from a fixed-rate mortgage in a lot of ways. Most importantly, with a fixed rate mortgage, the interest rate remains the same during the life of the loan. With an ARM, the rate changes periodically, usually in relation to a financial index, and the payments can go up or down depending on how the index performs.

All ARM’s have some common features. Basically, they are the adjustment period, the index, the margin, the note rate, initial rate, interest rate caps and payment caps (see the attached descriptions).

Payments are calculated by adding the margin set by the lender to the particular index. Some common indices utilized include:

  • Cost of Funds Index

  • Treasury Bills

  • LIBOR

For any inquiries, questions or commendations, please call: 888.316.4947 or fill out the following form

Locations

1677 Eureka Rd # 201

Roseville, CA 95661

917 7th street 1st floor

Sacramento, CA 95814

 

Shelby@UWLmortgage.com

Tel: 916-773-5351

BRE #01872387

NMLS #253083

Get a quote: 888.316.4947

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