Are you tired of paying high California rent and find yourself ready to own a property of your own? Well, then you’re probably faced with an overwhelming amount of loan options, each with its own terms and rates.
Picking the mortgage can be stressful. Working with an experienced mortgage broker like The Simpson team can help simplify the process. We sort through all the options and only present our clients with the best loan products offered by trusted lenders.
Figuring out what California Mortgage is right for you starts with your finances and ends with the property and purchase price.
Before you start browsing homes, it’s best to seek pre-approval from a trusted lender through a mortgage broker. They will walk you through the different options, review your finances, and get you ready to start making offers.
Some of the California mortgages a mortgage broker might offer include:
California FHA Loans
These FHA loans are popular with first-time homebuyers looking to enter the property market; however, they can be used by anyone as long as they haven’t owned or had an interest in a property in the past three years. They’re a great option because they have a minimum down payment of 3.5% and lower FICO credit score requirements.
One of the limitations of FHA loans is that they have maximum loan amounts that change depending on the area. Currently, the limit is $420,680 in low-cost areas and $970,800 in high-cost areas. Get more information on FHA loans here.
California VA Loans
VA loans are excellent loan products for eligible active and retired service members. They enable borrowers to purchase primary residences with no money down with no mortgage insurance cost. For more information on VA loans, visit our VA loan information page here.
Conventional/Conforming Loans
These are loans that meet the Fannie Mae/Freddie Mac guidelines. Conventional loans are restricted by loan amount; currently, the limit is $647,200 in low-cost areas and $970,800 in high-cost areas. They have a 20% down payment requirement, but with programs like Home Possible Mortgages, Fannie Mae HomeReady, and the Conventional 97 Loan, the down payment can be as low as 3%. Get more information on California Conventional Loans here.
Non-Conforming Loans (Jumbo Loans)
Loans that exceed the limits in the Fannie Mae/Freddie Mac guidelines are considered Jumbo loans. Because home prices across much of California are considerably high, these are popular loan options. Jumbo loans will finance up to $3 million in high-cost areas, including San Diego. Get more information on Jumbo Loans here.
If you’re unsure which is the right California Mortgage for your next purchase or refinance, get in touch with a member of The Simpson Team. During your free no-obligation phone call, we can discuss your financial and home purchasing goals.
