Family Looking for California home loans

California Home Loans

There are many different types of California home loans available to homebuyers and homeowners. To ensure you are matched with the best possible home loan, you should work with a mortgage company that can offer a wide variety of California home loan programs, which include a straightforward process for getting pre-approved.

Get Pre-Approved

Are you looking to buy a home or refinance a mortgage? Before you can consider locking in a rate, you need to get pre-approved by an experienced loan officer.

Your experienced loan officer will review your application and documentation within 24-48 hours. To ensure you get pre-approved in a timely fashion, the file needs to be complete. Any missing information or documentation will only delay the pre-approval process.

Once you’re pre-approved, you’ll have access to the California home loan programs your loan officer is licensed to provide.

California Home Loan: Get Pre-Approved

A quick home loan pre-approval with exceptional service and low rates.

Loan Programs

Here are the most common California home loan programs available to homeowners and homebuyers.

Conforming Home Loans

The most common California home loan is the Conforming home loan. Conforming home loans offer a wide variety of options, including a small downpayment (as little as 3%). Under many circumstances, Conforming home loans offer a zero-point option.

FHA Home Loans

If you are a First-Time Homebuyer and/or have less-than-perfect credit, then the FHA home loan might be a good fit for you.

And if you currently have an FHA home loan, you might want to consider an FHA Streamline Refinance – one of the best refinance programs in the industry. No appraisal; close in two to three weeks with minimal effort. When it comes to California home loans, specifically refinance loans, the FHA Streamline Refinance is by far the easiest home to get pre-approved for.

FHA 203(k) – home renovation loan

Are you buying a home that needs some work? Maybe it needs a new roof, updated flooring, etc. If so, then the FHA 203(k) might be a good fit for you.

You can also do the FHA 203(k) program for refinance transactions.

VA Home Loans

If you served in the military, you have access to California’s VA home loan program. The VA home loan program is a great way to buy a home or refinance a current mortgage.

For those buying a home under the California VA home loan program, you can purchase a home with 0% down. And for those who are refinancing a current mortgage, you might be eligible for the VA streamline refinance program. As California home loans go, it’s super easy and super quick!

Jumbo Home Loans

Starting in 2024, a California home loan amount above $766,550 is considered a Jumbo loan (unless you live in a high-cost county and/or it’s a multi-unit property). If you live in a high-cost county like Los Angeles or Santa Clara county, then Fannie Mae and Freddie Mac offer a “high balance” loan program.

For loan amounts above these limits, there is our flexible Jumbo home loan program. Our Jumbo home loan program allows for high loan amounts for both purchase and refinance transactions.

Bank Statement Home Loans

A Bank Statement home loan is a loan program that allows you to purchase a home or refinance a current mortgage using your bank statements to show your income (rather than tax returns or pay stubs). Here are the basic requirements for a Bank Statement Mortgage,

  • A middle credit score of 620 or higher
  • No tax returns are needed under this program
  • 10% down payment (or 10% equity for refinances)
  • 12 or 24 months of business and personal bank statements
  • Debt-To-Income (DTI) ratio below up to 50%

The Bank Statement Mortgage is an excellent home loan program for self-employed people who need to document their income in an alternative way.

USDA Home Loans

What is a USDA home loan?

The United States Department of Agriculture (USDA) home loan program was created in 1949 to assist low to moderate-income homebuyers in rural America in purchasing homes. The program, also known as the USDA Rural Development Guaranteed Housing Loan Program, aims to stimulate economic development and improve the quality of life in rural communities.

USDA

The USDA home loan program is a primary source for homebuying and refinancing in rural America. When it comes to California home loans for rural homeowners, the USDA home loan is one of the best options to consider.

Home Loan Rates

Under the various types of California home loans listed above, you have the option of locking in a fixed rate or an adjustable rate. Below we cover the similarities and differences between the two.

Fixed-Rate California Home Loans

The most conservative home loan rate is a fixed-rate home loan, and borrowers have many options to choose from. The benefit of a fixed-rate California home loan is that your payment and rate will never change.

The rate is higher than an adjustable-rate mortgage, but with that higher rate comes more safety and security. The following are the terms available:

  • 10-year fixed-rate home loan
  • 15-year fixed-rate home loan
  • 20-year fixed-rate home loan
  • 25-year fixed-rate home loan
  • 30-year fixed-rate home loan

Adjustable-Rate California Home Loans

The critical point with an Adjustable-Rate California home loan is that at some point in time, that rate you have will adjust. Adjustable Rate home loans are short to medium-term solutions for homebuyers or those looking to refinance their existing mortgage.

Most homeowners have either a five or seven-year fixed, adjustable rate mortgage. This means the loan rate will adjust higher after the fifth or seventh year. Some adjustable rate mortgages are fixed for as little as one month all the way up to ten years, depending on the program. The key to obtaining an adjustable-rate home loan is deciding how long you need the loan.

For example, if you plan on moving in three to five years, you’ll want a 5-year fixed mortgage. If you’re taking cash out and doing a remodel for the next year or two, you might want to lock in the rate for seven years since you’ll be there a bit longer.

When these rates adjust, they will apply your margin (you always want to ask what your margin is) to whatever index the loan is based on (before 2021, it was usually LIBOR), and that will be your new rate.

Most adjustable are now based on the Secured Overnight Financing Rate (SOFR).

California Home Loan: Get Pre-Approved

A quick home loan pre-approval with exceptional service and low rates.

Home Loan FAQs

Here are the answers to some of the frequently asked questions we receive about California home loans.

What are Interest Only Home Loans?

Interest-only California home loans offer a lower payment option when compared to your traditional home loan payment, which includes principal and interest. With an interest-only home loan payment option, you pay only the interest portion of the payment and no principal.

When deciding if you should obtain an interest-only payment option on your next home loan, determine what your short-term and long-term goals are for the property.  Having a clear understanding of what you wish to accomplish with the property is an important factor when deciding if you consider an interest-only California home loan.

What is an Impound Account?

California home loans offer the opportunity to set up an impound account with your mortgage payment. An impound account means that your property taxes and/or property insurance are included with your monthly home loan payment.

Instead of paying a lump sum annual bill, you will pay monthly into the account set up by the lender to have them pay these bills for you. It does not cost you anything to set up an impound account, and many homeowners find it beneficial to have one.

Do California Home Loans Have Pre-Payment Penalties?

Most don’t, but some do. Conforming home loans and the three main government-backed home loan programs (FHA, VA, and USDA) do not have pre-payment penalties.

However, some Bank Statement Mortgage programs have a one to three-year pre-payment penalty. Also, a few Jumbo home loan programs have them as well. Whenever you apply for a California home loan, you should ask, “Does this have a pre-payment penalty?”

This way, you know for sure before getting too deep into the process.

California Home Loan: Get Pre-Approved

A quick home loan pre-approval with exceptional service and low rates..

Your California Home Loan Partner

When you work with JB Mortgage Capital Inc., you’ll find our experience and service are second to none. We work hard to find our clients the best California home loan and we never charge junk fees.

Once we lock in terms, we guarantee your home loan will close exactly as quoted (or we’ll refund your appraisal fee). We not only value your time, but we also value your trust, and that is why the Better Business Bureau gave us an “A+” rating and the Business Consumers Alliance gave us a “AAA” rating (their highest).

Loan Officer Kevin O'Connor

About The Author

Loan Officer Kevin O'Connor has over 17 years of experience as a Mortgage Loan Originator and is a trusted resource for mortgage education and information. He's licensed by the state of California and the Nationwide Mortgage Licensing System. He has a top rating with the Better Business Bureau, Google, Yelp, and Zillow. You can contact him at 1-800-550-5538. CA DRE #01499872 / NMLS #247447

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