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California Loan Options and Mortgage Rates

November 8th, 2012 9:27 AM by Nathan Rufty

California is the populous state in USA and the largest in land mass. The Pacific Ocean borders the western coast and provides a temperate climate throughout the year largely to a big part of the southern state. Most of its cities are renown globally like San Francisco, which is the financial hub of the whole west coast. Napa valley is home to one of the finest and largest wine regions worldwide. Hollywood and Los Angeles are the world’s entertainment capital.

Whether it is up coast or down coast, residents of California enjoy diversity of nature. It has arid desert landscapes, lush farming regions, sprawling metropolis and exclusive ocean enclaves. Irrespective of your chosen area of residence, you will most likely find great home choices, California mortgage rates and loans programs all in California.

California mortgage rates, down payment assistance and loans

CHFA (California Housing Finance Assistance) has many available special programs for both first time homeowners and previous homeowners over the past 3 years. All eligible applicants must meet the income level threshold, home sale price limit and maximum loan amount. There are some cases where borrowers are allowed to purchase a single property such as a condominium, manufactured home or PUD. In addition, they can receive down payments assistance going up to 5% of purchase price of intended home as their second mortgage. They can also get more than 100% combined value to loan ratio.

The department of housing and community development of California has at least 200 programs for buyers and homeowners that include government subsidies, competitive current California mortgage rates for California, interest free loan as well as grants.

California mortgage interest rates and jumbo loans

FHA insures all loans up to $417,000 via the lending partners. These are commonly referred to as conventional conforming loans. Most areas in California are high cost areas with home values going at significantly above the threshold. In these areas, the buyers have to find other financing options apart from FHA. These are termed as jumbo loans. Jumbo loans are not therefore insured by FHA or any other government backed institution. Choose the best California mortgage rates that will offer you convenience.

In spite of this, they are very popular. There are hundreds of traditional banks, which still avail jumbo loans in California. There is not one set rate for jumbo loans in the state of California. Therefore, the buyers need to shop around for the best California mortgage rates for these loans. As a result, of high loan values and high loan payments, getting a qualification for these loans is not easy. If you need the jumbo loans, then it is viable for you to contact your lender and request documentation sheets, which list the limits for credit score and income.

In addition, if you want to estimate your jumbo loan payment, you can simply use the mortgage calculator tool. In getting a loan for buying a home in California, you have to be very smart about it. This will help you get a cost effective mortgage rate that you can easily pay back without any difficulty.
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Posted by Nathan Rufty on November 8th, 2012 9:27 AM

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