Home Loans California & Arizona

FHA home loans in Ontario CA for purchase and refinance lending, FHA loans is perfect for first time home buyers with low credit scores or limited funds.

FHA stands for Federal Housing Administration and the is to help stimulate the housing market by making home loans more accessible and affordable for those individuals to make homeownership a reality.

For 1st time home buyers looking to buy a house, this is a great home loan program to start with, if you have credit scores in the high 500s or low 600s this is a great program for you. FHA is much more flexible in terms of credit scores than Conventional will be. That are 2 areas of the the credit all lending programs are concerned with are, the credit score and what is in the body of the credit. You may have lendable credit but miss the mark on what is in the body of the credit like collections, judgements, short sale, foreclosure, late pays, etc...

FHA will allow a higher debt to income ratio than Conventional will, once we run your loan scenario through the DU FHA Score Card, it will approve you at the highest debt ratio based on the strength of the file like credit scores and liquid reserves. An FHA underwriter still will need to review the income to determine accurate debt ratios.

Down payment assistance home loan programs are available for all types of home lending but geared more towards FHA loan programs. To see if you are available for any and all types of down payment programs click HERE and complete the short questionnaire form to see what is available for you to take advantage of.

The down payment can come from many sources such as, gift from a family member, retirement program, sell of something of value with proper documentation for the paper trail, down payment assistance program (not limited to first time home buyers), combine 2 more down payment assistance programs to purchase a home, we can always find money for the down payment and closing cost.

FHA lowered the monthly mortgage insurance on January 26th 2015 from 1.35% to .85% with less than 5% for the down payment. This allows buyers to purchase a little higher in price point, that was a big move for HUD to lower that premium, making housing much more affordable for buyers.  

Co-Signers are also allowed when applying for a FHA home loan when buying a house. The co-signer can be a non-occupant co-signer, which means they do not need to live in the property with the primary applicant. The co-signer must also qualify as well with their income and credit. So when bringing in an additional applicant make sure they are just as strong as you are. 

As the guidelines stand today with the down payment are, if you put less than 10% down the monthly mortgage remain in the payment through the 30 year term. If you were to put 10% or more for the down payment the mortgage insurance will drop off after 11 years and you are at 78% of the original purchase amount or the appraised value which ever was less at the time you closed escrow on your property. If you put less than 10% down, the only way to have the mortgage insurance remove is that you must refinance out of the FHA loan and into a Conventional loan. Still an excellent loan programs that offers as little as 3.5% down or .5% down coupled with a down payment assistance home loan program in California.

Once in the FHA program, you can refinance into a lower payment without a credit report, appraisal or income documentation, making the refinance that much smoother to process. Each lender will have their own guidelines when it comes to this program known as the FHA Streamline Refinance Home Loan Program. Need to check with a loan officer to see what they require.

Each applicant must have their loan application reviewed and processed according each mortgage lender's underwriting guidelines. FHA has their basic underwriting matrixes but each lender may add to those matrixes. 

I welcome the opportunity to speak or meet with you to discuss your plans and goals about this great home loan for homebuyers looking to work with a seasoned licensed loan officer.

FHA home loans in Ontario CA for purchase and refinance lending, FHA is perfect for first time home buyers with low credit scores or limited funds to own a house. We offer this program along with many other direct home loan programs in California. Contact me at 909-503-5600 or email me HERE

Posted by Nathan Rufty on June 27th, 2015 9:29 AM

3 Tips to Get a Loan Approval When Purchasing a House! 


Can't Get Pre-Approved for a Mortgage in Southern California
? Here Are Three Tips to Try to Get a Loan Approval When Buying a Home!

Very few homebuyers can afford to buy a house upfront with cash, which is why banks and other financial institutions offer purchase home loans. Also known as mortgages, these types of loans let you make monthly payments to pay off the money you borrowed and the interest charged on that loan. If you can not get approved for a mortgage in California, try implement these few easy tips below.

Improve Your Credit Scores and Over Credit Report:

When applying for a home loan in California, the lender looks at your credit history and credit scores first. Your credit history contains a long list companies you borrowed money from in the past and present, it also shows your total debts, medical bills and if you had any foreclosures, late payments, collections, judgments and bankruptcies. Your credit score is a three digit number based on your ratio of debt to credit, any defaults on your account and any other issues will have an effect on your over all credit profile.

If a lender denies you for a home loan, get your credit scores before you apply again with another lender in California. Even something as simple as paying off more of your debt (pay the revolving balance debt down or off, do not close the account, leave it open) can increase your scores by a few points. Eliminating bad debts and removing any mistakes from your credit report can also increase your credit scores. 

Apply with a Cosigner, like a family member:

Applying for a loan with a cosigner is another option for those with credit issues or debt to income ratios that do not meet underwriting guidelines. The co-singer can help the over all pre-approval when you are applying for a purchase home loan. You want to find someone with a close connection to you such as a family member and someone who has a good credit scores.

Your cosigner will be agreeing to be responsible for that mortgage as well if you happen to default on that loan. The loan will also appear on the cosigner's credit report, which means you need to find someone who is willing to take a chance on you.

Look for Less Priced Home in Southern California:

When applying for a home loan, the lender looks at your credit history, your income, the ability for the down payment and other important qualifying factors to determine how much money you can borrow on a purchase home loan. Applying for a more expensive home might result in a rejection for that higher priced home. The lender will determine based on the information supplied that you may not be able to budget at a certain purchase price, applying for a home that is priced less might help your monthly budget to be able to qualify for a home loan.

It is possible for you to obtain a mortgage that meets your budget and buy a home of your dreams. Applying with a cosigner, improving your credit and looking at a different price point might help your chances in obtaining a full loan approval.

I welcome the opportunity to discuss your goals on purchasing a home in Rancho Cucamonga California. Please complete a short inquiry form HERE or call me directly at 909-503-5600. I look forward in hearing from you and reviewing your plans of homeownership.

by Nathan Rufty

Posted by Nathan Rufty on February 8th, 2015 9:45 AM

Buying a home in California after a Short Sale or Foreclosure can be as little as 2 years utilizing the VA home loan purchase program with no money down!

After 2 years of having a short sell or foreclosure on your primary home, you can purchase a home utilizing the VA home loan with no money down. Explore the opportunity to own a home again after you had a small hiccup on a previous home. The previous foreclosure could not have had a VA loan on that property, if so need to reinstate your VA eligibility in order to use this type of financing to purchase a home.

This time around you have licensed mortgage professionals in the market place, like myself to guide and present you with options on purchasing a home with a fix rate for 10, 15, 20 or 30 years. The VA program is available for active and retired military personnel the opportunity to own a primary home with no money down. 

Need to have active verifiable employment and have an overall credit profile that meets current VA underwriting guidelines. Do not get discouraged on what you hear on the news, from friends, family or co-workers, speak to a direct mortgage lender who lives and breaths this business everyday such as myself who knows and understands the VA home loan program. I would like the opportunity to explore and exhaust all avenues to place you back into homeownership status.

And if we can not make offers today, then lets get you in a position down the road where you can make an offer on a home in California.

Lets get started, does not hurt to explore and see what lays ahead. I am here to assist and present you with options on your next home purchase. With over 20 years associated with mortgage business, it is important to have a professional working with you to ensure that you have a solid loan that will only work to keep you in the home.

I look forward in hearing from you very soon to update you on the loan options in today's lending environment like the VA home loan program that offers no money purchase loan in California.

Let's get started by completing a short inquiry form to know your options on this best performing purchase program. Click HERE to get started!

Posted by Nathan Rufty on January 4th, 2015 8:58 AM
18 Questions to Ask when Interviewing a Real Estate Agent in Rancho Cucamonga, California when Buying or Selling a Home!

 

If you are looking to buy a home or sell a house in the city of Rancho Cucamonga, CA, you’ll probably want to not only find the best agent for your needs, but one with integrity and one that knows the real estate industry. They do not have to be your best friend, but they should be someone that you genuinely know, like and trust, because you will be spending a lot of time with him or her.

Start with recommendations from family and friends. Ask what they liked about them. What they did not like. And then take it one step further — spend about 30-45 minutes and ask them these questions!

  1. How long have you been selling residential real estate?
  2. Is it your full time job?
  3. What are your credentials?
  4. What other type of real estate training courses have you had?
  5. How many homes did you sell last year?
  6. How many buyers did you represent?
  7. What’s the average time to sell a home (if listing your home for sale)?
  8. How do you plan to market my home for sale?
  9. What’s the average time it took you to sell your listings?
  10. What’s the average time you spend with someone buying a home (if buying)?
  11. How close to the asking price, versus the sales price, are you able to negotiate (both for buyers and sellers)?
  12. Will you represent me exclusively (if you are a buyer)?
  13. How many lenders do you work with (if you need a mortgage)?
  14. Why do you like working with these lenders?
  15. What other service providers do you work with?
  16. Do you get any compensation when you refer them to me?
  17. How will you communicate with me?
  18. How often should I expect to hear from you?

Just a couple of things to keep in mind when selecting the right Realtor®. Experience is not a guarantee that the person is successful. Ask additional questions if you don’t understand the answers. Ask for references. Make the telephone calls. And before you buy a home in Rancho Cucamonga, by all means get pre-approved ahead of time.

I welcome the opportunity to review your income, credit and ability for the down payment and present you with loan options that will fit within your budget. My goal is to ensure your best interest are mind when you are looking to sell or purchase a house in Rancho Cucamonga, because this will be one of if not the biggest single purchase you will ever have and it should be done right the first time.

by Nathan Rufty

Posted by Nathan Rufty on December 28th, 2014 10:07 AM

What is a HUD 184 Home Loan Program in California and How do I qualify for one?

 


Purpose of the HUD-184 loan program:

 

The HUD Section 184 program is based on a government-to-government relationship between federally recognized tribes and the United States Government. American Indians and Alaska Natives may access this loan guarantee program as a benefit of purchasing a home as their primary residence while currently enrolled as members of federally recognized tribes, bands, communities, villages, Pueblos and Rancherias in the U.S. 


Borrower Eligibility for the program:

An applicant must be a member of a federally recognized tribe, a regional or village corporation as defined in the Alaska Native Claims Settlement Act or one of the five approved state tribes: Coharie Tribe (North Carolina); Haliwa-Saponi Tribe (North Carolina); Lumbee Tribe (North Carolina); Waccamaw Siouan Tribe (North Carolina); MOWA band of Choctaw (Alabama). To determine if a tribe is federally recognized, consult the Bureau of Indian Affairs website for the most up-to-date tribal directory (found at www.bia.gov under Document Library, referred to as FR Notice – Indian Entities Recognized and Eligible to Receive Services). Proof of membership or enrollment in a federally recognized tribe (or one of the five approved state tribes) will be determined through possession of a tribally issued enrollment card or through possession of a letter from the tribal enrollment office stating that the applicant is a member of the tribe. 


Property Eligibility 

The property that will be guaranteed by the HUD Section 184 program must be in an approved Indian Operating area. As of 2013 there are Indian operating areas in 39 states. The map of approved Indian operating areas can be found on the HUD website at: 

http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/ih/homeownership/184
 

Only properties located on Fee Simple Land are eligible at this time, we do not lend on leased land. 

Note: Eligible tribal members are not limited to purchasing a home in a place where their tribe is authorized to provide housing. For example, if an Oklahoma tribal member wants to purchase a home in California that is allowed. 


Maximum LTV/CLTV Transaction Type 

Max LTV 

Max CLTV 

Purchase 

97.75% 

97.75%2 

Rate/Term Refi 

Cash-Out Refi 

85% 

85% 

2HUD will permit second mortgages when the purchase price of the home is higher than Section 184 loan limits. The second mortgage cannot substitute for the 2.25% required down payment. The combined first and second mortgages cannot exceed the appraised value. Eligible Loan Types 

Owner Occupied Only 

Purchase 

Rate/Term Refinance 

Cash-Out 

Minimum FICO 

600 for all transaction types 


 

Why Should I Use the HUD Section 184 Loan?

There are many advantages in using this program:

Low Down Payment: 2.25% down payment of the purchase amount on loans over $50,000 and only 1.25% on loans under $50,000, this less than the standard requirement on FHA loan of 3.5% down on any loan amount 

No Pre-pay penalty: Can pay loan off at anytime 

No Monthly Mortgage Insurance: only a one time 1.5% up front guarantee fee which can be financed into the loan 

Protection from predatory lending: Program is monitor on the fees that an approved lender can charge Native American borrowers. Section 184 loans cannot be used for Adjustable Rate Mortgages (ARMs), fix rates only

Posted by Nathan Rufty on December 16th, 2014 12:17 PM

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