As brokers, we have access to multiple wholesale lenders. We currently offer Conventional, Conforming High-balance, Jumbo, FHA, FHA Streamline, VA, and VA Streamline. We also have various Alternative Qualified Mortgage (Alt-QM) mortgage products if you do not qualify for a traditional mortgage.
We have some great options for low down payment home loans.
3% down – 1% from You, 2% coming from the lender
We have access to a 3% down with 1% down payment from you and 2% down payment from the lender. Good credit and income limits may apply in some areas. Additional restrictions will apply.
We can do a Conventional loan with 3% down, FHA Loan with 3.5% down or a VA loan without a down payment up to 100% of the home’s value.
Loans with down-payment assistance
For low to moderate income borrowers, we have two options. The down payment is usually the biggest challenge for home buyers today. Both programs may allow you to buy a home with minimal out of pocket money. One is California Housing Finance Agency (CalHFA), the other is Golden State Financial Authority (GSFA) Grant Home Loans. CalHFA offers down payment assistance with MyHome Assistance. CalHFA offers closing costs assistance with Zero Interest Program (ZIP). GSFA has Down Payment Assistance (DPA) with zero percent interest and forgiven after 3 years. Both programs have Conventional, FHA, VA and USDA loans.
To sum it up, you choose a fixed rate mortgage offered by the program, then you use the programs down-payment assistance programs to help with the down-payment and closing costs. For example, CalHFA is a 30-year fixed rate mortgage using Fannie Mae HFA Preferred requiring 3% down payment up to $453,100. You combine the first with MyHome Assistance for the down-payment. If you need more money for the closing costs, you may combine with a ZIP program for the closing costs. Similarly, for GSFA, you get a fixed rate mortgage and then apply the DPA.
Do you offer mortgages for people with bad credit?
Most loans are subject to credit restrictions. We have access to multiple wholesale lenders with many products. If we can’t do a loan today, we will give you a game plan for the near future.
What is the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)?
Is a federal law signed by President Barack Obama on 7/21/2010. This bill was drafted as a result financial crisis of 2007-2008.
What is a Qualified Mortgage?
Is a residential mortgage with regular periodic payments for a specified term. The principal balance does not increase with no deferment or negative amortization. Loan originators are required to make a reasonable effort to verify you have a reasonable ability to repay your mortgage. This can be found in Subtitle B, Minimum Standards for Mortgages, of the Dodd-Frank Act. A Qualified Mortgage plus verifying your ability to repay creates a “safe harbor.”
Do you offer sub-prime loans?
Sub-prime loans was a loan often offered to borrowers who have been turned down or away from traditional loan programs. Often because of credit or other income based factors. There were popular between 2000 and 2007. Most loans nowadays need to be a Qualified Mortgage. Some Alternative Qualified Mortgages are loan programs that may allow you to qualify off your assets, bank statements or cash-flow for investors.
Do you offer Adjustable Rate Mortgages?
We offer a unique adjustable rate mortgage, the 5/5. It’s fixed for 5 years, adjusts once after 5 years and is fixed for the next 5 years. It adjusts once every 5 years. We also offer 10/1, 7/1, 5/1, and 5/5 ARMS.
We don’t currently offer a HELOC. We do not recommend a HELOC in a rising rate environment. Most people are not diligent to pay the fully amortizing payment (principle and interest) during the initial 10 years. Then the loan recasts and the payment goes up drastically. Often you are paying an interest only payment on an adjustable rate mortgage.
In 2018, with the new tax plan, interest tax deduction is restricted on HELOCs (see IRS post here).
Do you offer commercial or construction loans?
We don’t currently offer commercial or construction loans.
We have various Fixed Rate and Adjustable Rate Mortgages for 1-4 unit investment properties. If you are buying a new investment property, looking to cash-out or just want to refinance to a lower rate, we can help.