Economic Risk Factor Update: May 2024 [SlideShare]
Home loan in california
1. A presentation by Carl Holmes Mortgage Service
Home Loan in
California
There are many types of home
loans you can avail in California.
These include:
2. 30-year Fixed Rate Mortgage: Has fixed principal and
interest rate over 30 years of tenure with changes in tax
rates and insurance.
15-year Fixed Rate Mortgage: It works the same way as the
30-year plan but has lower interest rates as the tenure is
reduced by half.
Adjustable-Rate Mortgage: It lasts over a tenure of 10-15
years, where initial interest rates are low and then they keep
changing.
California FHA Loans (Government Insured): They are
meant for first-time buyers and have 3.5% down payment.
For smaller down payments, mortgage insurance premium
is necessary.
3. Services
There are various programs
that help first time home buyers
as well as people with low-
medium credit scores afford
home loans in California.
4. MyHome Assistance Program: This is a
small loan which is meant to help first-time
buyers make down payment and settle
other closing costs. You can borrow up to
5% of the total loan amount.
Zero Interest Program: This amount is
meant to help you with the mortgage and
consists of 3% of the loan amount. As the
name suggests, you don’t have to pay
interest here.
5. Conventional 97 Loans: These are easy
conventional loans which require you to
give only 3% down payment and the
balance 97% is the mortgage amount.
Fannie Mae HomeReady: This is part of the
Conventional 97 Loans meant for low-
moderate income level as well as first time
home buyers which allows more
contributors.
6. Home Possible Mortgages: Here, the down
payment varies between 3-5%, depending
on income level, property location, and
property type.
FHA 230K: These loans are provided for
renovation, repairs and remodelling of your
house. For projects below $35,000, you
take the Limited 230K while for projects
above the amount you take the Standard
230K.
7. Reverse Mortgages: This is meant for
senior citizens who wish to cash out their
equity while still staying at home in order
to make any emergency or home
improvement payments.
Refinancing: You can replace your
mortgage with another one if you want to
pay off your loan faster, lower your
monthly payments, cash out your equity,
consolidate a debt, change your mortgage
plan or settle a divorce.
8. Helps people of all
kinds of income
groups own a home
They come with
several tax benefits
There are several
plans for lower
interests and down
payments
Advantages
9. Evaluate current budget based on your income
and expenses
Approach a real estate agent to get good rates in
desired localities
Get a pre-approval for mortgage
Make offers for a property of your choice
After inspections make final purchase with the
home loan
How It Works
