Looking For A California Mortgage?
We offer low rates on California mortgages everyday on all of or loan products. Don’t have good credit? Not an issue. We offer FHA loan products with fico scores as low as 580. Do you have a lot of medical collection items? Not an issue. However, if you have nonmedical collection items your total balance can not exceed $2,000. What happens if your balance is greater than $2,000? Then, unfortunately the banks will require you to pay down the balance to qualify for a California mortgage or for that matter any mortgage. You also can’t have any nsf charges on your bank statement within the last two months. Borrowers can not currently be in default on any student loan. All student loan payments need to have been paid on time for the last 12 months. Currently, FHA loans require a down payment in the amount of 3.5% of the purchase price.
Conforming & Jumbo Loan Requirements
Conforming loans require a down payment in the amount of 5%. Looking for a JUMBO loan? One can expect to put anywhere from 10%-20%. If you have the full 20%, I would suggest you put that down in order to avoid monthly mortgage insurance which is expensive. Worst yet, the higher the loan amount the higher the mortgage insurance amount. Therefore, you will want to do the math. It’s probably a lot cheaper for you in the long run if you just continue to save up your entire 20% down payment and then apply for a California mortgage. JUMBO loans require a much higher fico score requirement than other loan products. Typically, you need a middle fico score of 680 or higher. Some lenders who offer better rates still require a middle fico score of 720 or higher. Then don’t forget you will also need reserve requirements. What are reserve requirements? The bank wants to see that after you pay your down payment and your closing cost and prepaid items you still have money left over in a checking, savings, money market, or cd account that can be used to pay your mortgage for the next 2-6 months depending upon your loan product. Different loan products have different reserve requirements. FHA loans only require 1-2 months while a JUMBO can require anywhere from 4-12 months depending upon the exact loan amount. Loan amounts over $1 million require greater reserve requirements.
Why go with a mortgage broker?
Unlike the large bank we offer numerous loan products. Plus, we have the ability on any given day to shop around the country from the East coast to the West coast to look for the lowest mortgage rate. When you walk into your local bank, there is only one published rate. That’s it. You either take the rate or you leave it. With us, we have several hundred lenders that we use on an ongoing basis. If we think a companies rates look a little high, we keep going until we find something better. Want to save even more money or obtain a better interest rate? Do you know that if you can get your fico score up over 760 you will be able to obtain the best interest rate out there? So pay down your credit card balances. Pay your bills on time. Pay off those collections, judgments, and liens. Then, give us a call and we would be more than happy to help assist you on your next California mortgage.
Article One: California Mortgage
National Wholesale Mortgage Inc.