Loan Programs
There are many loan programs available - too numerous to cover them all, we've highlighted the programs more commonly offered today. Characteristics of each loan program are unique, so consult your mortgage professional for more information and to become familiar with the details of the programs available to you.
To help determine the best loan program for you, consider the following:
- How important is payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.
- How important is rapid equity buildup? If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.
- Do you anticipate increasing or stable income?If income growth is anticipated, you could take advantage of a lower start rate on an ARM or a temporary buydown.
- Other factors to consider include:
- ability to qualify at market rates for loan amount selected
- anticipated term of occupancy
- possibility of significant rate changes
- existence of up-front costs
| Loan Programs | Characteristics |
| 15- and 30-Year Fixed-Rate Mortgages |
- Interest rate does not change.
- Principal and interest (P & I) does not change.
- Fixed-rate mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term.
- Different loan terms are available (15- and 30-year terms are most popular).
- The shorter the term, the faster equity is built and the loan is paid off.
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| FHA Fixed-Rate Mortgages |
- Great for first time buyers.
- 3.5% down payment can come from relative
- Lower credit score requirements
- Low rates similar to traditional loans.
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| Cal STRS Mortgages |
- For California Teachers and staff only.
- 3% down payment. 1% must come from home buyer. The rest can be gift from family.
- 1st and 2nd loan. 2nd loan is silent and deferred with no payment for 5 years.
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| CalPERS |
- For California State Employees.
- 100% No down loans.
- For those currently participating in CalPERS retirement plan.
- Fixed Rates similar to traditional financing.
- Low fee's
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| VA-Veterans Assistance Mortgages |
- 100% financing available depending on time spent in military.
- Low Fixed Rates.
- Low fee's to Veterans.
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