Los Angeles Westside California Home Loan

Finance Information

How much home can you afford? Use our finance center to learn about your loan options below. There are several loan programs available, and depending on your credit history, there is bound to be one that is perfect for you. Here are a few examples of the most popular programs offered today:

Types of Mortgage Loans

There are two primary categories of mortgage plans - Conventional or Government. Conventional loans are those that are made without government underwriting by a bank or wholesale lender. The loan size determines whether they are considered 'conforming' (with a current limit set at $417,000), which feature lower interest rates, 'agency jumbo' or 'conforming jumbo' ($417,000 to $625,500) with an intermediate rate and 'non-conforming' (currently, any amount above $625,500 also known as 'jumbo') loans carrying higher interest rates.

Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. Both corporations are presently under federal conservatorship, which gives them unfettered access to global capital markets at rock-bottom costs because their borrowings are fully guaranteed by the U.S. Treasury.

Finally, these various mortgage programs may be structured as either fixed-rate loans, adjustable-rate loans or those with varying combinations.

The government also backs or insures loans primarily as FHA (a unit of the U.S. Dept. of Housing and Urban Development) and VA loans.

FHA Loans

The Federal Housing Administration (FHA), offers loans to qualifying home buyers and are becoming more and more of a mainstream option. They can feature low down payments, typically around 3.5 percent and have relatively easy requirements compared to conventional loans. Loan limits in California were recently raised to $729,750. FHA mortgages are subject to statutory limitations, but have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!

Adjustable Rate Loans

With a fixed-rate mortgage, the interest rate stays the same for the life of the loan. But with an Adjustable Rate Mortgage (ARM), the interest rate changes periodically and is typically tied to an index. There are numerous indexes such as the U.S. Treasury (T-Notes 10-yr.), Bank Prime Loan (the Prime Rate) or the London Inter-Bank Offering Rate (LIBOR) from which one will be selected at the time of application.

Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed-rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today - knowing your income will rise in the future, then this loan may be right for you. It's also used when you expect to be in the home only for a short time.

Find The Loan That's Ideal for You!

Let us help you find the program that's right for you. Use our home loan finder and get started today!

 

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Contact Information

Photo of Craig Whitlock Real Estate
Craig Whitlock
COLDWELL BANKER BRENTWOOD
11661 San Vicente Blvd., 10th Floor
Los Angeles CA 90049
Mobile: (310) 488-4399
Fax: (310) 820-1457

Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of properties provided by the seller or obtained from Public Records or other sources as presented in this website.  Interested parties are advised to independently verify the accuracy of all information through personal inspection and with appropriate professionals.  Information herein deemed reliable but not guaranteed.

CalBRE LIC 01827537