Big Valley Mortgage

Helping People Realize their Dreams for Almost 20 Years!

Loan Programs

FHA

Minimum Down Payment: 3.50% effective Jan 1, can come from Immediate Family, Labor Union, Employer Group, Non Profit 501C3
Up Front MI of: 1.5%, added to Loan
Monthly MI of: .5%. Conventional Mortgage Insurance is much higher.
Maximum Loan Amount SFR: $580,000. Loan amounts above $417,000 have additional costs and or rate increases.
Maximum Seller Concession: 6%
No minimum FICO requirements but most investors are holding to their own established minimums
Declining market is not observed by FHA
Roof & Pest inspections not mandatory unless noted by appraiser or called for in contract
No Income Limits
Must be owner occupied
No requirement for reserves
Borrower can now pay previously non-allowable fees “processing, doc prep, underwriting, lender fees” *Except Tax Service fee
Non-traditional credit “telephone, PG&E, etc” allowed if there is no FICO available. Rate and fees are negatively impacted.
Non-Occupying co-borrower allowed
Can utilize other state, county and city programs, 203k Streamline, Energy Efficient Mortgage
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

Overview

FHA’s Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. FHA 203(k) can help you:

Increase sales with your buyers and sellers
Expand your pool of buyers
Help deliver the dream of homeownership

What Does it Cover

Covers improvements up to $35,000. Minimum improvement necessary is $5,000. Covered improvements include:

Roofs, gutters, downspouts
Heating and air conditioning
Upgrade/repair plumbing, septic, well, and electrical systems
Replacement of flooring, windows, doors, siding
Weatherization, painting, basement waterproofing
Minor remodels that don’t involve structural repairs
Purchase and installation of appliances
Handicapped accessibility improvements

What items remain ineligible for the Streamlined (k) program?

Properties that require the following work items are not eligible for financing under the Streamlined (k):

Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
New construction (including room additions)
Repair of structural damage
Repairs requiring detailed drawings or architectural exhibits
Landscaping or similar site amenity improvements
Any repair or improvement requiring a work schedule longer than 6 months
Rehabilitation activities that require more than 2 payments per specialized contractor

Mortgagors may not use the Streamlined (k) program to finance any required repairs arising from the appraisal that do not appear on the list of Streamlined (k) Eligible Work Items or that would:

Necessitate a “consultant” to develop a “Specification of Repairs/Work Write-Up”
Require plans or architectural exhibits
Require a plan reviewer
Require more than 6 months to complete
Result in work not starting within 30 days after loan closing
Cause the mortgagor to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted. (FHA anticipates that, in a typical case, the mortgagor would be able to occupy the property after mortgage loan closing.)

Application Process

Homebuyer locates property and signs a sales contract (purchase subject to home inspection)
Homebuyer schedules an inspection with a 203(k) cost consultant, home inspector or appraiser to budget the home improvements
Once budget is approved by borrower, cost consultant completes the work write-up and prepares contractor bid packages to obtain cost estimates
Appraiser uses work write-up to determine “as-is” and “improved value”
Loan closes with an FHA-approved 203(k) lender
Construction begins within 30 days of loan closing.
Must be completed in 6 months or less

USDA Loans

100% financing with no down payment or mortgage insurance! The guaranteed rural housing loan program provides compelling affordable housing options for borrowers
8 acres or less
Property can’t have a pool
Household calculation
All sources
Coding system on website
Flexible Underwriting!
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 monthly mortgage insurance premium payment is required
No cash reserves are required
Borrowers are not required to be first time homebuyers
No Loan limit restrictions
Minimum credit score of 600

CalSTRS Conventional 80/17

Loans for teachers and employees of the school district

Offers 80/17/3 purchase program
80% first and 17% second which is not factored into debt-to-income ratio and not paid for 5 years. Rolled into loan
Amortized over 30 years
2 percent can be in the form of a gift
1 percent from borrower’s own funds

Eligible Properties

Owner-occupied 1- to 4-units; attached and detached single-family residences; coops (conforming only); condos; and planned unit developments
Owner-occupied single-family residences; approved condos; approved attached and detached planned unit developments

Term

15 or 30 Year
30 Year (1st and 2nd Mortgages)

Conforming Loan Amount

Up to $417,000
Up to $505,612 (1st and 2nd mortgages combined)

Non-Conforming Loan Amount

$417,001 to $834,000
$505,613 to $650,000 (1st and 2nd mortgages combined)

Loan-to-Value (LTV) of 1st Mortgage

Loan-to-Value (LTV) of 2nd Mortgage

Maximum Combined Loan-to-Value (CLTV) of 1st and 2nd Mortgages

Down Payment

Min 5% 3%

Sources of Closing Costs

Borrowers own funds, seller contributions up to 3%, gift from relative, or unsecured grant from approved government agency

2nd Mortgage

Not applicable
Deferred payments on the 17% 2nd mortgage for the first 5 years; Contact lender for details Restrictions
Mortgage insurance required for all loans over 80% LTV
May not own any other properties

Eligibility

To be eligible for the CalSTRS Home Loan Program, the borrower must be an employee of a California public school district or California community college and/or a member of the California State Teachers’ Retirement System, or a CalSTRS employee
To be eligible for the CalSTRS Home Loan Program, the borrower must be an employee of a California public school district or California community college and/or a member of the California State Teachers’ Retirement System, or a CalSTRS employee

Reserve Requirement

2 months PITI reserves required
Note: The 80/17 program is for home purchases only (no refinance transactions). All mortgage loans made under the CalSTRS Home Loan Program will have fixed interest rates and terms of 30 or 15 years.

CalPERS

Great for public and local government employees
Can be combined with FHA first for 100% financing options
Competitive interest rates
Controlled closing costs
100% options on Jumbos
Lower M.I. rates
Ability to borrow either 50% of CalPERS retirement account up to $18,400 must be repaid in 15 years at a rate of 9.5%.
Not factored into debt-to-income ratio

The CalPERS Home Loan Advantage

The CalPERS Member Home Loan Program offers a variety of loan options to help you purchase your home. There is no requirement to be a first-time homebuyer, no minimum vesting requirement, and you are eligible for the program on your first day of employment.
If you already own a home, it's easy to use the Program to refinance too. Whether your goal is to consolidate your debts, make home improvements, shorten your loan term, or just lower your monthly mortgage payment, the program can work for you.
Whatever your situation, whatever your goals, we are here to help you every step of the way.

Security & Protection
Buying a home is one of the most important decisions you may make. Learn how the Home Loan Program protects your interests.

Program Flexibility
With a wide assortment of loan options, the Program can help you find the right fit for your home ownership needs.

Program Cost Savings
The CalPERS Home Loan Program can save you money when purchasing or refinancing your home. Find out more here.

CalHFA

CalHFA Conventional Loans
30-Year Fixed Mortgage. This conventional mortgage loan offer up to 95% financing with a 30-year term and a low, fixed interest rate
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/CalVet

One of the only 100% LTV programs around. No down payment required
Loan amounts up to $650,000
Must have DD214 with honorable discharge
Fairly reasonable underwriting guidelines
Must be owner occupied
Multi-Unit by two or more eligible veterans may consist of up to 6 family units
Bankruptcy and foreclosures do not necessarily eliminate veteran from qualifying– looking for 2 years in most cases
No cash reserves required