The good news is it only takes a two year wait after having a foreclosure to get a VA home loan in California. In this economy many veterans across the state of California have lost their home to foreclosure in the past few years, but many of those veterans are already eligible to use a VA home loan to buy once again with 100% financing. It is also one of the better times in history to buy a home in California with VA financing for a number of reasons:
- Prices are down by 50% from the peak in many places across the state
- VA loan interest rates are close to the lowest in the y have
.... Read more
What many former California homeowners don't realize is that conventional loan guidelines only require a two year wait after a short sale to apply for a conventional loan. That means homeowners that had short sales in 2009 and earlier are now eligible to get back into the market and buy.
Conventional guidelines do require buyers to put 20% down to qualify for a loan two years after a short sale. For 10% down you would have to wait four years after a short sale. FHA loans are available three years after a short sale and VA loans (only for veterans and active military) two years after.... Read more
There is a special loan available for properties taken back in foreclosure and currently owned by Fannie Mae. This financing is called Homepath Financing. It is only available on Fannie Mae owned properties. Below are some benefits:
- As low as 3% down payment
- Homepath mortgages do not have mortgage insurance
- No Appraisal required
- No condo documentation required
- As little as 10% down for investment properties and 2nd homes though Homepath financing
The above attributes of Fannie Mae Homepath financing can make it an easier loan to obtain than FHA or standard.... Read more
There is an excellent option for getting a jumbo mortgage loan in California where you will not have to put 20% down. This loan also goes above the new Fannie Mae loan limits of $625,000 throughout California. You can go up to $875,000 purchase with 10% down in Los Angeles County, Orange County, San Francisco, San Jose, Alameda County, Contra Costa County, Santa Barbara County and many more. In San Diego County you can go to% down to $796,000.
This loan has very low monthly mortgage insurance. And if you pay the loan down to 78% of the original purchase price the mortgage insurance can.... Read more
The good news is FHA loan requirements only require you to wait two years after a chapter 7 bankruptcy before you can apply for a FHA home loan.
For a Chapter 13 bankruptcy you only have to wait one year, and:
- all your payments to your creditors have to be on time
- you have to get permission from the bankruptcy court to enter into a new home mortgage
- all the payments to your creditors will be included in your debt-to-income ratio to qualify
Additionally, if you had a chapter 7 bankruptcy, FHA loan requirements will require you to not have any derogatory credit items after your bankruptcy.... Read more
As of late conventional lending vs FHA has become a lot more attractive in California. Mortgage insurance companies have become more lenient with their guidelines and now 5% down with a conventional loan is an excellent option in California.
||FHA 3.5% Down
||Conventional 5% Down
|Up Front Mortgage Insurance
||1% of loan amount
||.7% (700 credit) .9% (620-699 credit)
|Max debt-to-income ratio
|Include non-borrowing spouses debt
|Wait after short sale
|Wait after foreclosure
|Wait after bankruptcy
So as you can.... Read more
The low down financing options for conventional loans in California has really improved in 2011. You can get 5% down in every area of the state of California and pay less mortgage insurance that FHA loans. Remember, conventional loans with mortgage insurance do not have up front mortgage insurance like FHA and have a lower monthly than FHA. Below are some of the options for mortgage insurance with a 700 score:
- 5% down .70% per month
- 10% down .45% per month
- 15% down .25% per month
As mentioned above , this compares favorably to 1% up front and 1.15% per month mortgage.... Read more
A very important FHA loan requirement to successfully get approved for a FHA loan in California is the debt-to-income ratio (DTI). There are two types of types of DTI that are looked at with an FHA loan, the front and the back ratios.
The front ratio is your total monthly housing debt (mortgage+property taxes+insurance+hoa dues if applicable) divided by your monthly income. So for example if you make $5,000 per month and your total housing payment is $2,000 per month, your front ratio would be 40%. This is acceptable to qualify for a FHA loan in California. The maximum front ratio.... Read more
FHA loan requirements only require a THREE year wait after a foreclosure to qualify to buy a home again in California. This is a much shorter wait than conventional financing which requires a SEVEN year wait.
FHA loan guidelines like to see that you have a FHA loan credit score of 640 or above following a foreclosure in your past. Also, FHA guidelines like to see that you have re-established your credit following a bankruptcy. This means that you should have some open and active lines of credit that you have been paying on with out any lates for the last few years after your foreclosure..... Read more
FHA loan requirements have a great rule where they allow non-occupant co-borrowers to help a borrower applying for a loan qualify for a FHA loan in California. So if you want to get a FHA loan to buy a house in California and you can't quite qualify on your own, if you have a relative that would be willing to be a co-borrower, this could put you over the top and have to qualify. Here are some main points about FHA loan requirements for non-occupant co-borrowers in California:
- the non-occupant co-borrower has to be a relative
- all the income and debt obligations will be combined for the
.... Read more