Loan Programs

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

FHA 203(k) Streamlined

  • The 203(k) Rehabilitation Loan provides funds for both the purchase of the property and the costs of its rehabilitation.
  • 1 to 4 Units / Refinance and Purchase Transactions
  • Threshold for rehabilitation work is at least $5000.
  • Streamline 203(k) available for smaller Non-structural work
  • Rehab work funds are escrowed and dispersed upon inspection
  • Appraised value considers work completed

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