So here is the number 6 and 7 what of home mortgage. For more Information on California Home Loans go to mortgages4california.com
6. What are the different loan types? There are FHA home loans which are backed by the Federal Housing Administration. FHA home loans offers 2 types of loans. They are Conforming (up to $417,000) and High Balance ($417,000 to $625,500). There is a slight difference in interest rate.
USDA - Home loans are back by the US Dept of Agriculture. These loans have limited loan amounts due to income limits. USDA is for low to moderate income families.
VA - Loans are backed by the Veterans Administration. They are for veterans and current military. VA offers 100% financing on loans up to $625,500, but loan amounts are limited by your entitlement amount.
Conventional Conforming - Loans are loans backed by Fannie Mae and Freddie Mac that offer loan amounts up to $417,000.
Conventional High Balance - Are loans backed by Fannie and Freddie that have loan amounts $417,000 to $625,500. But the maximum loans amounts are dependent on county loans limits. These limits are based on county incomes.
Jumbo home loans - Are loans with loan amounts from $625,500 and up. These guidelines are much stricter. FICO scores need to be higher and down payments are higher. Why? Because, these loans are not backed buy and government programs. These are made by private investors and they want more security for their money.
For a preappproval and more info Click here hollistermortgage Up to date information on home loans.
7. What is a preapproval? - A preapproval is a loan approval based on the application, credit report, bank statements and pay stubs. This is not a full approval. This is an approval based on basic information provided by a borrower.
Keith Woeste
American Financial Network
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831-801-8667
hollistermortgage
mortgages4california
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