FHA - The
Federal Housing Administration (FHA), a wholly owned government
corporation, was established under the National Housing Act of
1934 to improve housing standards and conditions; to provide an
adequate home financing system through insurance of mortgages;
and to stabilize the mortgage market. FHA was consolidated into
the newly established Department of Housing and Urban Development
(HUD) in 1965. Since 1934, FHA has been extremely successful in
achieving these goals. An FHA loan allows you to put a very low
down payment on your home. The maximum loan limit is based on
the average cost of living in your area. The FHA program for homebuyers
is one of the most popular due to the ease of qualifying and low
down payments. back to top
FHA-EEM
- An FHA Energy Efficient Mortgage recognizes the energy savings
of a home. It allows the buyer (or homeowner who is refinancing)
to qualify for a larger mortgage to finance the construction or
installation of improvements that will increase the home’s
energy efficiency. Improvements might include insulation, new
energy efficient heating and air conditioning systems, new water
heaters, etc. The maximum amount is 5% of the property value (not
to exceed $8,000) or $4,000, whichever is greater. This loan can
be used on existing single family homes or two unit properties
(such as a duplex.) The home must be inspected by an energy
consultant. The fee for the inspection may be financed by the
loan. The rating report will determine if the cost of the improvements
(plus any maintenance costs) will increase the energy efficiency
of the home. If the improvements will save money on the utility
bills, the cost of the improvements may be financed in the loan.
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VA - The purpose of the VA-guaranteed loan program
is to provide loans to veterans to purchase or refinance a home.
Veterans can obtain up to 100% financing on purchases. The benefits
of a VA loan are: no down payment, no cash reserves, existing
home or new construction, manufactured homes or lots, can be used
for refinance, no monthly mortgage insurance, no need to be a
first time buyer, can repay without penalty. The limitations
are: co-borrower must be spouse or have own entitlement, only
open to veterans, active duty military or reservists, funding
fee is added to the loan and the loan limit is $203,000.
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CalPERS - This loan program is for members of the California
Public Employees' Retirement System who are eligible for the 100%
Financing Program may be able to get into a home with no out-of-pocket
money. All active, inactive, and retired members of CalPERS,
the Legislators' Retirement System, the Judges' Retirement System,
and the Judges' Retirement System II are eligible to participate.
sThey can receive a secured CalPERS Personal Loan for their down
payment for up to 3% of the purchase price of the home.
The Personal Loan fulfills the minimum 1% down payment required
from the borrower's own funds. In addition, a 3% Silent
Second from California Housing Loan Insurance Fund (CaHLIF) can
be used for closing costs (recurring and non-recurring), permanent
interest rate buydowns, and down payment. Also, seller contributions
of up to 3% towards closing costs are allowed. (Note: the
borrower cannot receive any cash back) back
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CalSTRS
- This loan program is for members of the California State Teachers
Retirement System and has competitive loan rates on a variety
of mortgage loan programs:
- CalSTRS Conventional
30-15 year Fixed Rate Program
- CalSTRS No Points,
No Fees Program
- CalSTRS/CaHLIF
Zero Down Preferred Program
All program interest
rates are set by CalSTRS. It has highly experienced
Correspondent Lenders with program participants. Also a
free 60-day interest rate lock upon application submittal and
two "float down" options if interest rates fall. Purchase
or refinance plans are available. All income derived from
mortgage payments goes directly into the Teachers' Retirement
Fund.
PERS - Members
of the Public Employees' Retirement System are eligible for financing
home purchases and refinances up to $350,000. Members or annuitants
receiving benefits are eligible under the P.E.R.S. Member Home
Loan Program. Public employees who are participating in P.E.R.S.
second tier retirement programs and are not required to contribute
to the system are considered active members. An annuitant is a
person who receives a monthly retirement benefit from the retirement
systems described above.
P.E.R.S. loans are
available to finance one to four unit properties, townhomes and
condos located in California. Borrowers must occupy the property
for at least 1 year. back to top
MTA - MTA
loans use the 12-Month Treasury Average Index. A 12-MTA is based
on average annual yields on U.S. Treasury Securities as made available
by the Federal Reserve is adjusted to a constant maturity of one
year. In the past, MTA mortgage loans have not exhibited sharp
interest rate increases such as those that occurred in the late
1980s. The 12-MTA has never increased more than .25% in any month
for over a decade.
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COFI - The
cost of funds index (COFI) is not an interest rate. It reflects
the average interest paid by savings institutions for their various
sources of funds over a specified period of time. Deposits in
checking and savings accounts including certificates of deposit,
money market deposit accounts, transaction accounts, and passbook
accounts are the primary source of funds for most savings institutions.
Other sources of funds include loans obtained through credit programs
(known as "advances") and money borrowed from other financial
institutions.
In general, the COFI
does not move up or down as rapidly as market interest rates (such
as the prime rate, the discount rate, or Treasury bill rates)
because many savings institutions rely on fixed rate deposits
of medium- and long-term maturities as a primary source of funds.
Since rates on these deposits are not affected by changing market
interest rates until the deposit matures, the total interest expense
paid by savings institutions in a particular month reflects, to
a significant degree, interest rates that were prevalent in previous
months or years. back to top
CalHFA -
CalHFA as it is sometimes known, is operated by the California
Housing Finance Authority. It is designed to provide up to 100%
of home loan financing to prospective eligible first-time homebuyers.
It generally consists of a standard 97% FHA - CHFA fixed-rate
30-year mortgage and a 3% CHFA down payment assistance second
mortgage, which is also called a "sleeping" or "silent" second.
The second mortgage is offered for 30 years at 3% simple interest.
All payments are deferred on this second mortgage until one of
the following happens: the CHAFA first mortgage becomes due and
payable; the first mortgage is paid in full or refinanced; or,
the property is sold. back to top
JUMBO LOANS -
Offers 30 and 15 year fixed rate mortgage with full document,
alternate documentation and limited documentation. This product
is for our elite borrower’s, therefore, offers higher loan
amounts and very competitive pricing. Some FHA loans are available
as a jumbo loan and depending on where you live, you could put
as little as 3.5% down with your jumbo loan, or get a cash-out
refinance for up to 80%. Call our qualified home loan experts
at (800) 555-0150 to find out what kind of jumbo loan you qualify
for.
Cash out and No cash out refinance
are allowable. Single family detached, Condo's, PUD's and
1 unit second homes can be financed with no prepayment penalty.
Secondary financing is allowable on lower LTV's. back
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CAL VET -
CAL-VET is a program very similar to the VA programs. We can provide
all the information that you will need to determine if a CAL-VET
loan is a good option for you.
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FUTURE VALUE LOANS - A borrower may acquire a loan on construction
or improvement of a property based on the value of that property
upon completion of the construction and/or improvements. back
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HIGH DEBT RATIO LOANS - Borrowers having the ratio of their
monthly bills to their monthly income higher than 50% is concidered
a high debt ratio. Loan programs are available for these
borrowers, allowing them to finance the purchase of a home or
property. back to top
