The San Diego housing market is both an opportunity and a challenge for homebuyers. While there is a lot of sales activity, it can be challenging to navigate the buying process, including getting a mortgage. Whether you are a first-time homebuyer, looking to buy-up, or need to refinance an existing mortgage loan, it helps to rely on the advice of qualified mortgage professionals.
Community Mortgage is a community-focused mortgage broker serving clients in the greater San Diego area. By collaborating with a network of respected mortgage lenders, we provide our clients with a wide range of financing options. Our dedicated team offers comprehensive, personalized service and has a track record of bringing borrowers and lenders together. If you would like to discuss your mortgage needs, please call our office today at (619) 692-3630 to schedule a consultation.
TYPES OF MORTGAGE LOAN PROGRAMS
Our experienced mortgage consultants take the time to understand your financial situation and unique objectives and help you explore a wide range of options to finance a home purchase or refinance a current loan.
For many individuals, buying a home, condominium or property will most likely be the single largest financial transaction that they will undertake during their lifetime. This is an investment in the future, since the property values historically increase over time. And to make such a big purchase , most prospective home buyers need to obtain a home purchase loan. With the competitive pricing on San Diego homes and the risk of overextending your family. It is valuable to have the advice and counsel of experienced mortgage consultants.
At Community Mortgage, we know that qualifying for a loan hinges on a number of factors, such as your income and creditworthiness. Our team works to arrange a home purchase loan that is affordable and suits your financial situation. We can also help you obtain a loan to cover the cost of improvements on an existing home or one that you intend to purchase.
Currently, obtaining a loan can be difficult because lending requirements are strict and banks tend to reject borrowers who do not meet specific criteria. By working with multiple lenders, we help you secure a mortgage loan at a reasonable interest rate and with good payment terms for your situation.
For those who already own a home and are paying monthly mortgage payments, this might be the right time to consider a refinance. With a properly structured refinance, you can obtain a lower interest rate or change the term of the mortgage loan. In so doing, you can lower your monthly payments, save money, build equity in your home and improve your credit score.
A conventional mortgage loan is one that is not insured or guaranteed by the government, such as the Federal Housing Administration (FHA) or the U.S Department of Veterans Affairs (VA). Conventional loans can have fixed or adjustable rates, and typical terms are 30, 20, and 15 years. Most lenders require borrowers to make a down payment in a range of 3 to 20 percent of the total loan amount, and borrowers are typically responsible for paying origination and appraisal fees.
In order to qualify for a conventional loan, borrowers typically need to have a good credit score. Borrowers must also have sufficient income to justify the loan. Generally, the rule of thumb is that the mortgage payment should not exceed 31 percent of a borrower’s monthly income. Additionally, the total debt payments should not be greater than 45 percent of a borrower’s monthly income.
In short, conventional loans are best suited for individuals with good to excellent credit. The main benefits for borrowers are (1) access to competitive rates and lower costs, (2) affordable payment options for those who have less than the 20 percent down payment and (3) certain loan fees can be negotiated. At Community Mortgage, we assess your financial situation and credit status to determine whether a conventional loan is the best option for you.
OTHER MORTGAGE LOAN PRODUCTS
Our team of mortgage professionals may also recommend a variety of other mortgage loans that may better suit your needs, including:
- Jumbo Loans– Also referred to as non-conforming loans because they do not conform to the loan limits set by Fannie Mae and Freddie Mac – presently $424,100 for a single family dwelling. Borrowers in San Diego often require jumbo mortgage loans because of the higher home values in the area. These loans tend to have higher interest rates than conforming loans.
- Super Conforming Loans – Also known as a “high-balance” conforming loan, these loans allow qualified borrowers to pay a lower interest rate, despite the fact the loan is available for a more expensive home because San Diego is designated a high-cost area.
- FHA Insured Loans – These loans are provided by private, HUD approved lenders and insured by the Federal Housing Administration. FHA insured loans only require a 3.5 percent down payment. However, borrowers are also required to obtain mortgage insurance. FHA loans are ideal for first-time homebuyers who are unable to make the 20 percent down payment necessary to qualify for a conforming mortgage loan.
- VA Home Loans – The VA guarantees loans made by private lenders to eligible veterans who meet certain credit criteria. No down payment is required since the VA guarantees up to 25 percent of the loan amount, not greater than the present loan limit of $612,950 in San Diego.
- HARP Loan Program – The Home Affordable Refinance Program (HARP) was introduced in 2009 by Department of Housing and Urban Development (HUD). This program is designed to help struggling borrowers whose home values have fallen below the amount of the underlying mortgage loan, or are “underwater.” The program allows qualified borrowers who are current on their mortgage to lower their interest rate, modify the loan term, or convert from an adjustable to a fixed-rate mortgage, and there is no minimum credit score required. The program deadline has now been extended to December 31, 2018.
- Reverse Mortgage – Designed for senior citizens to provide income to pay monthly bills by converting some of the equity in the home into cash. Payments on the new loan are not due until the home is sold or vacated. A reverse mortgage allows the owner to maintain title to the home and pass it on to his or her heirs as part of the estate.
WHY YOU SHOULD CALL COMMUNITY MORTGAGE
At Community Mortgage, our team is dedicated to serving home buyers, owners and sellers in San Diego. Knowing that the mortgage loan process is complicated and frustrating, especially for first-time home buyers, we work closely with you to secure the best financing option. Our mortgage consultants guide you through the process and explain everything along the way so that you can make an informed financial decision. We help you complete the application, review your credit report, and collect all the necessary documentation that lenders typically require to approve a mortgage loan.
Our mission is to build the community by educating consumers and helping them reach their goals. Call our office today at (619) 692-3630 or fill out a contact form for a free, personalized consultation to learn about your best mortgage options.