Traditional Loan Programs
Each with a number of avenues to get you there.
Traditional Loan Programs
With a number of avenues to get you there.
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
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
- Reverse mortgages are loans offered to homeowners who are 62 or older who have equity in their homes. The loan programs allow borrowers to defer payment on the loans until they pass away, sell the home, or move out. Homeowners, however, remain responsible for the payment of taxes, insurance, maintenance, and other items. Nonpayment of these items can lead to a default under the loan terms and ultimate loss of the home. FHA insured reverse mortgages have an up front and ongoing cost; ask your loan officer for details. These materials are not from, nor approved by HUD, FHA, or any governing agency.