Many borrowers choose to finance their home purchase with a conventional loan. These mortgages have fewer restrictions placed on them than FHA loans, which are backed by the government. Homebuyers with a minimum of 5% down may qualify for a conventional loan, and those who are able to put down 20% or more will also be able to avoid paying Private Mortgage Insurance (PMI). Conventional loans include both fixed and adjustable interest rates and the length of the payment term can vary greatly.
Renovation loans allow borrowers that do not have additional funds to add the cost of repairs or upgrades onto their mortgage. There are a variety of loans that facilitate repairs, but the most common is the FHA 203(k) which allows you to add up to $35,000 for renovations
State governments offer a variety of products to help first time buyers obtain a loan. These programs often include down payment and closing cost assistance. You will need to speak with a USRES Lending associate to find out if you qualify for a Bond Program.
Adjustable Rate Mortgages (ARMs) are generally for borrowers who do not plan to live in a house for more than 5-7 years. These mortgages provide a lower initial interest rate that is adjusted by the lender down the line. A borrower considering this type of loan will need to be sure they clearly understand the terms as they change over time.
The minimum amount for a loan to be considered jumbo varies by county, but many homes in Southern California will meet this requirement. Jumbo loans are not backed by the government, and are considered more risky by lenders. As a result, borrower requirements are often stricter for this loan type.
Reverse Mortgages allow senior borrowers who already own a home to use the accumulated value of their home to either eliminate their existing mortgage or receive cash from their property. Borrowers are still responsible for homeowner’s insurance and property taxes, so careful consideration should be taken before obtaining a reverse mortgage