Home Loans California & Arizona

Looking to buy a house in Ontario CA in the Inland Empire area of San Bernardino County. What type of home loan programs are available to purchase a home?

There are several home loan programs to purchase a house in Ontario CA such as loans with FHA, VA, Fannie Mae, Freddie Mac and Down Payment Assistance home loan programs.

The FHA home loan program are not limited to first time home buyers, this loan program is available to the vast majority of home buyers today. As of today the down payment is as little as 3.5% down of the purchase amount, which can come from a DPA (down payment assistance) program, gift from a family member, retirement plan and many other approved source of funds. The debt to income ratio can go higher than other loan program, once of the highest allowed, some compensating factors will help with an approval of a high debt to income ratio such as higher credit scores and reserves of funds that are sourced and verified.

The VA home loan program is available to active and retired service members that are in good standing with the Veteran's Affairs. This is a no money down payment purchase program in California with no monthly mortgage. This by far is the best performing home loan program on the market today, even at 100% financing with very liberal underwriting standards this loan program has the lowest foreclosure and delinquency rates amongst all other purchase programs. If you are a active or retired military personnel this is the program for you.

The Fannie Mae and Freddie Mac home loan programs almost a mirror image of one another with some minor adjustments with underwriting qualifications. Both now offer a 3% down payment purchase home loan program, this opens more opportunities for homebuyers to compare this option with the FHA loan program. Putting less than 20% for the down payment will require monthly mortgage insurance, on the Conventional loan program the MMI can be bought out and will eventually drop off, unlike FHA will remain throughout the life of loan if you put less than 10% down. Fannie Mae and Freddie Mac do have tighter underwriting standards than any other purchase programs, but still an option to explore when buying a home in Ontario California.

There are many Down Payment Assistance Program in California starting with local cities, counties and statewide programs. There are DPAs that are open to non-first time home buyers, a great option to purchase a house with limited funds to do so. The DPAs do have income limits that depend how many dependents will be living in the home, more dependents there are the more income can be used to qualify for the programs, some of the programs have high income limits so do not count this option out till we investigate your option utilizing a Down Payment Assistance programs.

There are several other purchase programs in the state of California that one can take advantage such as the USDA-RD no money down purchase program (not available in Ontario CA) as well as the HUD 184 Native American home loan program.

I welcome the opportunity to discuss your goals of buying a home in Ontario CA weather a first time home buyer or rebound buyer, let's explore your lending options. Call or text me at 909-503-5600 or email me HERE to start the conversation.

by Nathan Rufty   

 
Posted by Nathan Rufty on April 12th, 2015 10:49 AM

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