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 insurance for FHA loans in California. Another advantage of a conventional loan vs FHA is that if a spouse is not going on the loan, with conventional you do not have to check their credit and include their debt obligations. With FHA loans in California, you have to check the non-borrowing spouse’s credit and include all their debt obligations in the loan. This can make conventional a better option if one spouse carries a lot of debt and/or has had credit issues in the past such as a short sale or foreclosure.
But remember that conventional loans with mortgage insurance have stricter underwriting rules for credit and debt-to-income ratios than FHA.
If you have questions or would like to get approved for a home loan in California please don’t hesitate to email me at homeloan8@gmail.com or call at 858-922-7899.
Some tips about conventional loans with mortgage insurance in California:
- Conventional and FHA loan limits in California are FALLING as of October 1 2011. FHA and conventional loan limits in San Jose, San Francisco area, Orange County, Anaheim, Santa Ana, Los Angeles will be $625,000. FHA and conventional loan limits in San Diego will be $546,250. Other areas Fresno ($281,750), Riverside ($355,350), San Bernardino ($355,350), Stockton ($304,750) will be $417,000. Sacramento will be $474, 950.
- Condos are available with 5% down but require 51% of the units to be owner occupied
Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
homeloan8@gmail.com
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