The process of acquiring financing for a home is crucial to your search and will ultimately determine what you can afford. The conversation is an easy one to have when you trust the lender you are working with. Start with your local bank. They know you. You know them. Maybe they can help you. If you need a place to start searching for a good lender, I know quality lenders who can help.
Find a Lender
A conversation with a lender about financing a home purchase is the first step in establishing a relationship of trust that will enable you to get the right information about rates, costs, risks, terms, and all the fine print. I can help point you in the direction of lenders that have delivered consistent quality customer service to my clients. Contact REALTOR® to speak to a preferred lender
Loan Products
There are a variety of loan products offered in today’s market. There are a handful of commonly known loan products that are used in financing a home purchase. Here is a brief outline of the most common:
Conventional
A Conventional loan is typically described as a loan that is not insured by the government or any agency. This loan is typically fixed in its terms and rate. Typically, this loan requires 20% down, but some lenders offer conventional loans with as little as 5%.
FHA
The Federal Housing Administration, generally known as “FHA”, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family homes, multifamily properties, residential care facilities, and hospitals. It is one of the largest insurers of mortgages in the world, insuring more than 46 million mortgages since its inception in 1934.
Check out the FHA website for bit of history and the purpose of this loan product. Lenders that follow the Federal Housing Administration’s guidelines offer these types of loans.
VA
VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
Check out the VA’s website for a detail on loans offered, benefits, eligibility, and how to apply.
CALHFA
For more than 40 years, the California Housing Finance Agency (CalHFA) has supported the needs of renters and homebuyers by providing financing and programs so more low to moderate income Californians have a place to call home. Established in 1975, CalHFA was chartered as the state’s affordable housing lender. The Agency’s Multifamily Division finances affordable rental housing through partnerships with jurisdictions, developers and more, while its Single Family Division provides first mortgage loans and down payment assistance to first-time homebuyers. CalHFA is a completely self-supporting state agency, and its bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.
For more detailed information on home loans and rates, Contact REALTOR® Erick Salgado for one of his preferred lenders.