Using Loan Against Retirement For FHA Loan Down Payment In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
To qualify FHA loan it is required that you have a minimum of a 3.5% FHA loan down payment. This 3.5% can also come as a gift from a relative. Another way to come up with the FHA loan down payment is the get a temporary loan from borrowing from your IRA or 401k. There are some excellent benefits to using this method to get the down payment to qualify FHA loan:
- When you borrower from your 401k or IRA, the underwriter will not count the monthly payment you make to pay back this loan for FHA loan approval
- Many times when to take out a loan against your 401k or IRA there is no interest and you only pay yourself back
- When you take a loan out against your 401k or IRA vs. cashing it out, there is no penalty and you keep your money invested gaining interest
So if you are struggling for a way to come up with the required 3.5% FHA loan down payment, consider taking a temporary loan out against your IRA or 401k to raise the down payment.
And here are some very up-to-date latest benefits of both FHA loans in California and conventional loans in California:
FHA
- FHA loan interest rates are REDICULOUSLY low right now! The lowest I have EVER seen in the business! Ask me about a refinance!
- FHA loan down payment is only 3.5% and that can be a gift from a relative, this is lowest down payment available of any loan today (outside of specialized loans such as VA loans for military and USDA loans for rural properties)
- Qualify FHA loan with very lenient guidelines…only 620 FHA loan credit needed and 56.9% debt-to-income ratio (conventional needs a 680 credit score and 45% debt ratio)
- Maximum FHA loan up to $729,750 in many California areas such as Los Angeles, San Diego, San Jose, San Francisco, Santa Barbara and other areas. This would allow you to buy a house with FHA loan California up to $756,217 with only 3.5% down
Conventional
- 5% down available if you have a 720 credit score with 41% debt-to-income ratio
- Conventional loan limits in California up to $729,750
- Homepath mortgage available on Homepath properties with 3% down and 10% down for 2nd home buyers and investors
- Homepath financing available on Fannie Mae owner condos without any condo checks
For more FHA, conventional or Homepath loan information in California feel free to send me an email at homeloan8@gmail.com or call at 858-922-7899.
Warmly,
Rob Chomentowski
Sr. Loan Officer (FHA, VA and conventional loan specialist)
858-922-7899
Just a reminder that if you are a VA eligible borrower and you were deployed for 90 days between April 30th 2009 and April 30th 2010 you can still get the $8,000 home buyer tax credit. As a reminder, once you close on a house, you apply for the tax credit and the IRS will send you $8,000 if you paid at least $8,000 in federal taxes this or the prior year. This means $8,000 in your pocket shortly after closing with no strings attached.
So send me an email or give me a call if you want to get approved for a VA loan to purchase a home n California and think you might qualify for this special tax credit extension. 858-922-7899 or homeloan8@gmail.com.
Here are some of the latest up-to-date highlights and benefits of VA loans in California:
- VA loan benefits allow any veteran receiving any VA disability pay to have the VA funding fee completely waived! This can amount to many thousands of dollars in savings.
- VA loan credit does not need to be perfect, a 620 credit score can get you a 100% financing VA loan with excellent VA loan interest
- VA streamline refinances are an INCREDIBLE benefit of VA loans! If you have a VA loan you can painlessly drop your rate down to market. Right now VA loan interest rates in California are the lowest I have EVER seen. Take advantage of it while it is here!
- VA loan limits in California can go upwards of $900,000 in many counties. San Diego, Los Angeles, San Jose, San Francisco, Santa Barbara, Orange County and more all have very high maximum VA loans.
- Get a second VA loan, and even a third, fourth, etc… However you can only have one VA loan at a time
Don’t hesitate to call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all or would like to apply for a VA, FHA or conventional loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
Get a VA Loan to Purchase in Califorinia Until April 2011 and Still Get $8,000 Tax Credit is a post from: VA,FHA and Conventional Loans 858-922-7899
Keys to Qualify FHA Loan on 2-4 Units Owner Occupied in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
FHA has wonderfully flexible and lenient guidelines that allow home buyers in California to get FHA loan to buy a 2-4 unit property as an owner occupant. If you buy a duplex, triplex or fourplex and live in one unit and rent the others, you can buy the property with the low FHA loan down payment of 3.5% and also get today’s record low FHA loan interest rates. Whereas an investor who buys a 2-4 unit property as an investment property they will not live in has to put 25% down and have much tougher loan qualifications and not quite as good interest rates. So there are some huge advantages to buying a duplex, triplex or fourplex with FHA financing.
Now here are some of the keys to keep in mind when get FHA loan to buy a 2-4 unit. First of all, if you a buying a 2 unit duplex property, there is no difference to the FHA loan approval qualifications of a condo or single family home. You just need the minimum FHA loan down payment of 3.5% down (and that can be a gift from a relative), a 620 credit score and all of the other standard qualifications. But with a 3-4 unit building there is an extra twist to qualifying for FHA financing. With a 3-4 unit building, the total market rents of all the units (including the one you will live in) must be equal to or greater than the principle and interest of the loan + monthly property taxes + month home insurance (otherwise known as PITI). If the total rents do not equal the PITI, then you must increase your down payment until they do equal the PITI.
Also keep in mind a real big advantage to buying a 2-4 unit property with an FHA loan is that you can use the rents from the units you don’t occupy as income to help you qualify for the loan.
It can be a very financially smart thing for a home buyer to buy a 2-4 unit property:
- They can one day move out of the property and retain the property as a investment property for cash flow, appreciation and tax benefits
- If they plan to stay in the property, as time goes on the other units you do not occupy rents will rise eventually paying for 100% of the expense of owning the property allow you to essentially live for free
- In expensive areas of California such as San Francisco, San Jose, Los Angeles, Orange County, San Diego and Santa Barbara where single-family homes have would be too high of a housing payment, owning a 2-4 unit can allow you to make ownership more affordable because you can collect the rents of the units you do not occupy
So please give me a call or send me an email if you are buying a 2-4 unit property with an FHA loan and/or would like to be approved for an FHA loan to buy one.
Here are some reminders about some of the benefits of buying you home with FHA loan in California or a conventional loan:
- FHA loan credit score does not have to be perfect, a 620 score can get you excellent FHA loan interest rates in California
- Maximum FHA loan in California is $729,750. Many counties and cities in California such as San Diego, Los Angeles, Orange, San Jose, and San Francisco allow you to go all the way up to $729,750 with just 3.5% FHA down payment
- FHA loan vs conventional loan…FHA requires only 3.5% down payment, allows lower credit scores and higher debt-to-income ratios. Conventional can be had with 5% down, no up front mortgage insurance but had much higher credit score and debt-to-income ratio standards
- FHA loan down payment minimum is only 3.5% and can be a gift from a relative
- FHA loan interest rates are STILL close to record historical lows!
- Conventional loan offer the Fannie Mae Homepath loan with as little as 3% down and no appraisal needed, see my earlier article about Homepath (http://www.socalfhahomeloans.com/fannie-mae-homepath-loans-an-excellent-alternative-to-getting-fha-loan-california/)
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a FHA, VA or conventional Loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
VA loan streamline refinances have a really nice feature if you have moved out of the property you once purchased with a VA loan that is now a rental. Even though the property is now a rental, you can still do a VA loan streamline refinance on it with the same VA loan interest rates and VA loan qualification guidelines as if you lived in it.
This is really a huge benefit. Because anyone else who wants to refinance a rental property with any other type of NON-VA loan on it, has to go through a very tough and stringent underwriting process with getting a full appraisal, only able to go up to 80% of the property value, full credit pull, full income documentation, etc… But on a VA loan streamline you do not need any of this on your rental and you can refinance even if the loan balance is 100% or more of the property value. Below are some of the advantages of VA loan streamline refinances:
- No income or job documentation required
- In many cases no credit report required, you only need to have not missed a mortgage payment in 12 mos
- In many cases no appraisal, and if there is an appraisal it will not be a full appraisal
- The loan balance can be 100% of the property value and sometimes more if no appraisal is needed
- VA loan streamline refinances can be done with no cost to the borrower and reducing to VA loan interest rates lower than anyone ever imagined!
If you have any questions about getting a VA loan streamline refinance on your rental property or other type of property give me a call or email at 858-922-7899 or homeloan8@gmail.com.
And other general current and up-to-date advantages of VA lending:
- VA loan credit scores do not have to be perfect, a 620 score can get you a top VA loan interest rate
- VA loan limits in California go up above $900,000 for 100% financing in certain counties. And many cities and counties such as Los Angeles, Orange County, San Diego, San Jose and San Francisco have very high VA loan limits
- VA homeloans have NO monthly mortgage insurance, a big advantage over FHA and conventional loans
- VA lending requires NO down payment, the loans are 100% financing
- Interest rates VA loan are still at close to 50 yea historical lows
- VA loan streamline refinance allows you to drop into a low interest rate easily if you already have a VA loan
- You can get a second VA loan if you have paid off your first VA loan, even a 3rd, 4th etc… But you can only have one VA loan at a time
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA, FHA or conventional loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
VA Loan Streamline Refinance on A Rental Property In California is a post from: VA,FHA and Conventional Loans 858-922-7899
Each county in California has a VA loan limit for the maximum dollar amount you can get 100% financing on a VA loan. Below are some examples of the maximum VA loan for 100% financing in the more populated counties in California:
- Alameda County $962,500
- Contra Costa County $962,500
- Los Angeles County $593,750
- Orange County $593,750
- Sacramento County $418,750
- San Diego County $437,500
- San Francisco County $962,500
- Santa Clara County $633,750
- Fresno County $417,000
So you can generally get a VA loan for 100% financing zero down payment as long as your purchase price does not go over the amounts for the counties above. But you can go over these VA loan limits, but you would have to put down a small amount. Here is the formula for how much you have to put down if you go over the maximum VA loan for your county:
- (purchase price-county loan limit)*25%
So here are some examples. If you wanted to buy a $700,000 house in LA County with a VA loan, you would have to put down $26,562. This was calculated by: ($700,000-$593,750)*25%. If you wanted to buy a $500,000 house in San Diego you would have to put down $15,625. ($500,000-$437,500)*25%.
Give me a call if you have any questions about using this formula to figure out the VA loan limit f0r your VA purchase.
Here are some of the most up-to-date benefits of VA lending:
- VA homeloans are 100% financing, no down payment
- VA lending allows the seller to pay all your closing costs, so combine this with 100% financing of VA loans and you can buy a house with practically zero out-of-pocket costs
- VA loan interest rates are at 50 year+ lows, if not all time historic lows
- VA loan streamline refinances allow you to lower your rate to market rate without an appraisal, income documentation or credit checks
- You may be able to get a VA loan even if you think you have bad credit, ask me and I can help you improve your credit
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
VA Loan Limits in California and What Happens If You Go Over The Limits is a post from: VA,FHA and Conventional Loans 858-922-7899
How to Qualify FHA Loan When Rent Out Current House and Buy a New House in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
Many people today are living in the current house they own but they want to take advantage of today’s bargain house prices and qualify FHA loan with 3.5% down payment to buy a new home. And at the same time they want to rent out their current house and keep it, or they cannot sell their current house because they do not have enough equity. But many home buyers need to count the rent as income that they could get on their old house qualify for the new FHA loan. Here are the rules for counting the rent as income if you move out of your current home and plan to rent it and then buy a new home:
- To count the rental income on the house you are moving out of, you must have at least 25% equity. During the loan process an appraisal will be done to verify your current house has 25% equity and the FHA appraisal will also note the average rents for a house such as yours. You can then count 85% of the projected rent as income towards FHA loan approval.
- If you do not have 25% equity in your current house you are moving out of, you will have to qualify FHA loan with both housing payments; your current house payment and your new house payment of the house you want to buy.
These same rules also apply to conventional and VA home loans. So keep this in mind if you want to move out of your current house and buy a new house to take advantage of the huge price drops across California. Give me a call or email if you have any questions at all about these rules or other FHA, VA or conventional loan qualification, 858-922-7899, homeloan8@gmail.com
Here some up-to-date and current advantages of FHA loans:
FHA benefits
- Right now FHA loan interest rates are the lowest in 50 years, if not ever
- Maximum FHA loans across California can reach $729,750 in areas such as Los Angeles, Orange County, San Diego, San Francisco, San Jose, Santa Barbara and more. This means you could buy a $756,000 house with a 3.5% down FHA loan.
- FHA loan credit score only has to be 620 (call me if you need assistance improving your credit score)
- FHA loan down payment is only 3.5% and can be a gift from a relative
- FHA home loan requirements are very flexible allowing your debt-to-income ratios to be up to 56.9%.
Conventional loan benefits
- 3% down on Fannie Mae owned properties, this is called a homepath mortgage (read more about Homepath from my article here http://www.socalfhahomeloans.com/fannie-homepath-mortgage-great-option-to-buy-in-california/)
- Fannie homepath loans do not require a condo to qualify, no information on the condo is requested
- Conventional loans allow up to 10 loans for investors will multiple properties
- No up front mortgage insurance
- 5% down standard conventional loans available on any property (does not have to be Fannie Homepath property)
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and Homepath, FHA, VA specialist)
858-922-7899
We are a direct lender offering Homepath Financing.
VA allow VA eligible borrowers to get a second VA loan, and third, fourth and so on. However there are some rules around the re-use of your VA loan eligibility that you should be aware of:
- You are only allowed to have one VA loan at a time. So let’s say you got a VA loan a few years ago, moved out of that house and rented it and now want to buy with another VA loan, you can’t do that unless you refinance that house of a VA loan or sell it
- You are only allowed to retain one property that formerly had a VA loan. Let’s say you bought a house 10 years ago with a VA loan and refinanced to a conventional loan and kept the property as a rental. Then 5 years ago you bought another home with a VA loan and also refinanced that and kept it as a rental. In this case you could not get full eligibility to get a VA loan to buy a third house. You would have to sell one of the rentals to restore your VA eligibility.
So there are some quick rules about re-using your VA eligibility to get a VA loan to buy a home. If you have any questions don’t hesitate to call or email me, 858-922-7899 or homeloan8@gmail.com
And here is a quick reminder in the latest updates of the benefits of VA lending in California:
- If you qualify VA loan it is a 100% financing zero down loan. It is the only 100% financing mortgage loan available today. The next best is FHA with 3.5% down.
- VA loan 30 year fixed interest rates are still very, very low compared to historical norms
- California VA loans available with 100% financing all the way up to $600,000, $700,000 and beyond depending which county you buy in California. This allows you to buy with VA 100% financing even in coastal areas such as San Diego, Los Angeles, San Jose, San Francisco and Orange County. A VA loan over $417,000 is a jumbo VA loan.
- VA loan credit scores do not have to be perfect, you just need a 600 score to qualify.
- You can get a second VA loan (and 3rd, 4th, etc…) even if you have had a VA loan before, but you can only have one at a time.
- VA loan benefits include a waived VA funding fee for veterans if you receive any VA disability pay. This is a savings of thousands and thousands of dollars
- VA lending has NO monthly mortgage insurance. You have to put 20% down to get any other type of mortgage with no monthly mortgage insurance.
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
Re-using Your VA Loan Benefits In California is a post from: VA,FHA and Conventional Loans 858-922-7899
Conventional Interest-Only and Adjustable Loans Now Harder to Qualify for In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
Adjustable mortgages and interest-only loans were extremely popular from 2002-2007 when values in California went through the roof. Fannie Mae and Freddie Mac have now made it difficult to qualify for these loans. And remember, FHA loans and VA loans are ALL fully amortizing loans. Interest-only is not available with FHA or VA.
Here are some of the changes:
Changes to interest-only loans:
- Interest only loans not available AT ALL on cash-out refinances, investment properties and 2-4 unit properties
- Only available on primary residences and 2nd homes if you loan balance is 70% or less of your property value
- 720 min credit score required
Changes to 3 and 5 year fixed ARM’s:
- You must qualify using the start rate + 2% – this makes it much more difficult to qualify, especially since conventional loans now have a max debt ratio of 50%
So those are some changes raising the bar significantly for interest-only loans and 3 and 5 year ARM loan qualification. Please contact me if you have any questions, 858-922-7899.
Here are some very current benefits of conventional and FHA loans:
FHA loans:
- FHA loan interest rates have recently dropped again and are even lower than former historic lows!
- Maximum FHA loan if California can get all the way up to $729,750 in many counties of California. FHA loans in Los Angeles, San Diego, Orange County, San Jose and San Francisco can have very high loan limits.
- FHA loan down payment is only 3.5% and that can be a gift from a relative
- FHA home loan requirements allow a very lenient debt-to-income ratio of 56.9% where conventional loans are 41%-45% with less than 20% down.
- FHA loans do come with up front mortgage insurance that is rolled into the loan balance and monthly mortgage insurance for the first five years.
Conventional
- 5% down available if you have a 720 credit score with 41% debt-to-income ratio
- Conventional loan limits in California up to $729,750
- Homepath mortgage available on Homepath properties with 3% down and 10% down for 2nd home buyers and investors
- Homepath financing available on Fannie Mae owner condos without any condo checks
For more FHA, conventional or VA loan information in California feel free to send me an email at homeloan8@gmail.com or call at 858-922-7899.
Something to keep in mind if you get a VA loan in California to purchase a property and the property has other structures on it in additional to the main house, is you may need a termite clearance on ALL the structures.
It is fairly well know that it is standard when you get a VA loan in California that a termite clearance will be required on the main house. This means you will need to cure all section 1 and section 2 items that come back in the pest inspection report before the VA lender will fund your loan. But many times buyers are caught off guard if the property has a guest house, detached garage or barn for example when they find out that these structures may also need section 1 and section 2 termite clearances. Generally the VA underwriter will want a termite clearance on those structures UNLESS the appraiser does not give value to those structures in the appraisal. In this case the underwriter may waive the requirement for a termite clearance on those outbuildings.
So make sure when you are writing an offer on a property that has additional structures not attached to the main house that you are prepared to possibly get a termite clearance on those structures and the cost related to this. Sometimes you can get the seller to pay for this. But in this current market dominated by bank owner REO sales and short sales, often the seller will not pay for termite work required for a clearance.
And as a reminder here are some of the great benefits of VA homeloans in California:
- VA loan benefits allow any veteran receiving any VA disability pay to have the VA funding fee completely waived! This can amount to many thousands of dollars in savings.
- VA loan credit does not need to be perfect, a 620 credit score can get you a 100% financing VA loan with excellent VA loan interest
- VA streamline refinances are an INCREDIBLE benefit of VA loans! If you have a VA loan you can painlessly drop your rate down to market. Right now VA loan interest rates in California are the lowest I have EVER seen. Take advantage of it while it is here!
- VA loan limits in California can go upwards of $900,000 in many counties. San Diego, Los Angeles, San Jose, San Francisco, Santa Barbara, Orange County and more all have very high maximum VA loans.
- Get a second VA loan, and even a third, fourth, etc… However you can only have one VA loan at a time
Don’t hesitate to call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all or would like to apply for a VA, FHA or conventional loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
Termite Clearance Needed On All Buildings When Get a VA Loan in California is a post from: VA,FHA and Conventional Loans 858-922-7899
Convention Loan vs FHA – Conventional Now Requires 7 Year Wait After Foreclosure in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
When it comes to getting a new conventional loan vs a FHA loan, if you recently had a foreclosure you may have to wait seven years to get a new conventional loan, but still only three years to get FHA loan.
Recently Fannie Mae (who controls most of the lending guidelines for conventional loans) came out with a new guideline where borrowers will have to wait seven years after the date of a foreclosure sale in order to get a new conventional loan. This time period can be cut to five years if you can document an extenuating circumstance that was the reason for the foreclosure. This change has been made by Fannie Mae due to the number of “strategic defaults” where borrowers who can pay choose to walk away. This also encourages the pursuit of short sales for borrowers who are underwater and can’t sell. Fannie Mae only requires a two year wait after a short sale to obtain a new conventional mortgage.
FHA still remains only a three year wait after the date of a foreclosure sale to obtain a new FHA loan. VA loans are the most lenient with only two years after foreclosure needed to get a VA loan.
This new rule is especially impactful on investors wanting to get non-occupied investor loans. FHA and VA loans are only for owner occupants. So the ONLY option for investors to get a mortgage is conventional financing. And investors are now out of the market for seven years following a foreclosure on their record.
Here are some of the most up-t0 date benefits of conventional and FHA loans:
FHA
- FHA loan interest rates are REDICULOUSLY low right now! The lowest I have EVER seen in the business! Ask me about a refinance!
- FHA loan down payment is only 3.5% and that can be a gift from a relative, this is lowest down payment available of any loan today (outside of specialized loans such as VA loans for military and USDA loans for rural properties)
- Qualify FHA loan with very lenient guidelines…only 620 FHA loan credit needed and 56.9% debt-to-income ratio (conventional needs a 680 credit score and 45% debt ratio)
- Maximum FHA loan up to $729,750 in many California areas such as Los Angeles, San Diego, San Jose, San Francisco, Santa Barbara and other areas. This would allow you to buy a house with FHA loan California up to $756,217 with only 3.5% down
Conventional
- 5% down available if you have a 720 credit score with 41% debt-to-income ratio
- Conventional loan limits in California up to $729,750
- Homepath mortgage available on Homepath properties with 3% down and 10% down for 2nd home buyers and investors
- Homepath financing available on Fannie Mae owner condos without any condo checks
For more FHA, conventional or Homepath loan information in California feel free to send me an email at homeloan8@gmail.com or call at 858-922-7899.
Warmly,
Rob Chomentowski
Sr. Loan Officer (FHA, VA and conventional loan specialist)
858-922-7899