FHA Loans With Bad Credit in San Diego

The FHA home loan program was traditionally largely a loan program for borrowers with bad credit or credit challenges.  It got away from that “bad credit” focus after 2008 as FHA took on a much larger portion of the total home loan market in the U.S.   After 2008 FHA home loans had much higher average credit scores then it did historically.  But now FHA is moving back into its traditional role as a loan program for credit challenged and first time home buyers.  Below are some highlights of FHA home loans right now:

  • 550 credit score and borrowers can still get a cash out refinance up to 85% of their properties value
  • 550 credit score and a borrower can purchase a home with a low down payment
  • FHA home loans only require a two year wait after a Chapter 7 bankruptcy and a 1 year wait after the start of payments on a Chapter 13 bankruptcy
  • FHA home loans only require 3.5% down payment even with a low credit score
  • A borrower can get a FHA home loan only 3 years after a prior foreclosure or short sale
  • A home buyer can get 100% of the down payment as a gift with a FHA home loan
  • FHA loan limits can go up very high in many counties even for borrowers with credit challenges and scores down to 550: San Diego County FHA loan limit:$546,250, Orange County: $625,500, Los Angeles County: $625,500, Sacramento County: $474,950, Alameda, Contra Costa, San Francisco, Santa Clara Counties: $625,500
  • FHA home loans allow a non-occupying co-borrower to help qualify even without perfect credit
  • FHA home loan interest rates are not credit score driven, even borrowers with very low credit scores can get rock bottom 30 year fixed interest rates

I hope this information and these bullet points helps you realize that FHA home loans are very flexible with credit challenges, first time home buyers, repeat home buyers and home owners wanting to refinance.  Also, we are very knowledgeable about the credit scoring system so we will go over your credit report in detail with you.  Often there are many small changes we can make to your credit report to bump up your score significantly in a short period of time.  So don’t hesitate to call or email us at homeloan8@gmail .com with any questions your might have.

What Is A VA Jumbo Loan In California?

When the term “VA jumbo loan” is used, it technically refers to a high balance VA loan that is over $417,000.  In this article I will talk about some of the unique aspects of VA jumbo loans in California.

First of all, a VA borrower can obtain a loan for a lot higher than $417,000 in California.  With zero down payment a VA borrower can go up to the VA county limit for their particular county in California.  For example, the San Diego County VA loan limit for 100% financing is $546,250.  Some examples of other county loan limits are: Los Angeles $687,500, Orange $687,500, Sacramento $474,950, Riverside $417,000, San Bernardino $417,000 and so on.

But a VA borrower can also go way above these county limits with a small down payment.  A quick calculation to figure out how much you would have to put down if you want to go above the county limit is: (purchase price-county limit)X25%.  So for example if a VA borrower wanted to buy a $800,000 home in San Diego, you would take ($800,000-$546,250)X25%=$63,437.  A VA borrower with full VA eligibility would only have to put $63,437 down to buy a $800,000 home in San Diego County.  And of course if they wanted to buy a $546,250 house they could put zero down.

OK so back to some more unique features of VA jumbo loans.  One unique aspect of VA jumbo loans is for borrowers with prior short sales.  We have a niche where we can lend to a borrower only one year after a prior short sale if they keep their VA loan below $417,000.  If the VA loan is above $417,000, the borrower would need to wait two years after a prior short sale to qualify for a VA home loan.  The rules for waiting period after a prior short sale for bankruptcy or foreclosure are the same for VA jumbo loans, which is only a two year wait.

Often times the VA underwriter can be a bit more conservative with VA jumbo loans vs. VA loans <$417,000.  They may look for compensating factors if the debt-to-income ratios are high or if there are prior credit issues.

I hope this article helps explain better what a VA jumbo loan in California is.  Don’t hesitate to email us at homeloan8@gmail.com or call at 858-922-7899 if you have any questions at all about mortgage financing in California.

FHA Loan Highlights in San Diego

FHA home loans can be a valuable option for home buyers and home owners in San Diego (and the rest of California).  There are a number of factors that make FHA home loans unique and sometimes the only choice for certain home owners and home buyers.  Below I will point out some of the factors that would make a home buyer or home owner choose a FHA home loan over a conventional loan:

  • FHA only requires a three year wait after a prior foreclosure (conventional requires a seven year wait)
  • FHA loan limits in San Diego County are $546,250 (loan limits in Los Angeles, Orange County are $625,000)
  • FHA down minimum down payment is 3.5%
  • FHA still allows up to 55% debt-to-income ratios where conventional with a low down payment is generally about 45%
  • FHA only requires a two year wait after a prior bankruptcy to apply for a FHA loan (conventional loans require a four year wait)
  • FHA loans allow a cash out refinance to 85% of the property value with just a 620 middle credit score
  • FHA loans allow a non-occupant co-borrower
  • FHA loans allow all of the down payment to be a gift from a relative
  • FHA loans require a three year wait after short sale (conventional loans with less than 20% down require a four year wait after short sale)
  • You can get a FHA home loan with as low as a 560 credit score
  • FHA interest rates are not as credit score driven as conventional loans, which means even if you have a low credit score you will get an excellent interest rate

So those are some of the highlights of getting a FHA loan in San Diego (and anywhere in California for that matter).  Don’t hesitate to email us at homeloan8@gmail.com or call at 858-922-7899.

Mortgage After Bankruptcy In San Diego

Over the past 5-6 years many California residents have had economic difficulties resulting in having to file a personal bankruptcy.  But now many of these same people are back on their feet doing well and wanting to enter the home market to buy a new home.  Some great news that many may not be aware of is that the wait after a prior bankruptcy to apply for a mortgage loan in San Diego (or anywhere in California) is not that long.  Below are the waiting periods for different loan types to apply for a home loan after a Chapter 7 bankruptcy:

  • FHA home loan: 2 years
  • VA home loan: 2 years
  • Conventional home loan:4 years

The wait after a Chapter 13 bankruptcy is only one year if all payments have been made on time and you get permission from the bankruptcy court.

It’s important to keep in mind when you apply for a home loan after bankruptcy that you have to have re-established your credit after the bankruptcy and you want to have no late payments or derogatory credit issues following the bankruptcy.  A great way to begin to re-establish your credit following a bankruptcy is to get a secured credit card from the bank where you have your checking account and to apply for other small store cards or credit cards.  Just charge small items you would need anyway on these cards, make your payments monthly, and these on time payments will report to the credit bureaus and you will be re-establishing your credit.

So I hope this gets you excited if you had a prior bankruptcy that you can apply for a mortgage loan very soon after the bankruptcy.  Don’t hesitate to call 858-922-7899 or email homeloan8@gmail.com if you have any questions regarding applying for a home mortgage in California.

Regards,

Rob Chomentowski

Homeloan8@gmail.com

858-922-7899

Sr. Loan Officer

Affinity Financial

Jumbo Loan Two Years After Short Sale in San Diego

Over the past few years there were many home owners that had to short sell their homes due to many reasons often related to the economy.  Some excellent news that I wanted to relay in this article is that we can fund jumbo loans in San Diego (and anywhere in California) only two years after a prior short sale.  When I say “jumbo loans” what I am referring to are loans above the Fannie Mae loan limit for San Diego (or for any county in California).  The 2014 Fannie Mae loan limit for San Diego County is $546,250.  So any loan amount over this amount would be considered a true jumbo loan.  And we can lend over $546,250 to borrowers only two years after a prior short sale.  The Fannie Mae loan limits for Orange, Los Angeles, Contra Costa, Santa Clara, San Francisco, Alameda, Marin counties is $625,000.  And we can lend over these limits with only a two year wait after a prior short sale.  And by the way, even if your loan is at or below the Fannie Mae limit it is still a two year wait after a prior short sale.

We can lend all the way up to $3 million loan amounts and above with only the two year wait after the short sale.  Here are some basic guidelines for jumbo home loans:

  • 20% down payment minimum
  • Credit scores generally need to be over 660
  • Debt-to-income ratio has to be 43% or under
  • 30 year fixed loans and 5 and 7 year fixed ARM loans available
  • Single-family homes and condo’s acceptable

So I hope this gets you excited that you can be back in the market to purchase your dream home only two years after a prior short sale.  Don’t hesitate to call 858-922-7899 or email homeloan8@gmail.com if you have any questions at all about this or any other mortgage products.

Regards,

Rob Chomentowski

Sr. Loan Officer

Affinity Financial

homeloan8@gmail.com]

858-922-7899

VA Loan One Year After Short Sale San Diego

A really terrific niche that we have is the ability to approve a VA borrower only one year after a prior short sale.  Only 12 months has to pass since the short sale closed and we can get you fully approved for a VA home loan in California.  The key date to look up to know when you can close on your new home is the date the deed transferred for your prior short sale.    One year after this point we can get you approved for a VA loan.

The first step in the process is to contact us and we can pull your current VA eligibility.  Then we can take a full loan application over the phone and get you started.   If it has been only one year after a prior short sale, the maximum VA loan you can get approved for is $417,000.  If it has been two years or more after a prior short sale we can go up to as high as $1.5 million with a VA loan in California.

So if you have had a short sale a year ago get excited as you can be back in the market again looking for a home with a 100% financed VA home loan.  Don’t hesitate to call at 858-922-7899 or email us at homeloan8@gmail.com

Regards,

Rob Chomentowski

homeloan8@gmail.com

Sr. Loan Officer (and VA specialist)

Affinity Financial

858-922-7899

 

 

 

VA Loan Limits Increase For California in 2014

While FHA loans and Fannie Mae loan limits decreased in 2014, VA loan limits have increased in many counties in California.  These are the limits to which a veteran or active military borrower can buy or refinance with zero down /100% financing.  Remember you can always go above the VA county loan limit with a small down payment (25% of the difference between the purchase price and VA loan limit).  Below are the new VA loan limits for California counties.  Anything not on the list below still has a VA loan limit of $417,000.

  • Alameda County: $1,050,000
  • Contra Costa County: $1,050,000
  • El Dorado County: $437,500
  • Los Angeles County: $687,500
  • Marin County: $1,050,000
  • Monterey County: $500,000
  • Napa County: $575,000
  • Orange County: $687,500
  • Placer County: $437,500
  • Sacramento County: $437,500
  • San Benito County: $827,500
  • San Diego County: $527,500
  • San Francisco County: $1,050,000
  • San Luis Obispo: $518,750
  • San Mateo County: $1,050,000
  • Santa Barbara County: $643,750
  • Santa Clara County: $827,500
  • Santa Cruz County: $681,250
  • Sonoma County: $500,000
  • Ventura County: $556,250
  • Yolo County: $437,500

I hope this gets you excited about what you can buy with your VA home loan benefits in 2014.  Don’t hesitate to call us at 858-922-7899 or email at homeloan8@gmail.com if you have any questions about getting approved for a VA home loan in California.

Rob Chomentowski

Sr. Loan Officer

Affinity Financial

homeloan8@gmail.com

858-922-7899

VA Cash Out Refinance to 100% Property Value San Diego

We have a special niche loan available where we can fund a cash out refinance for veterans and active military with a VA loan up to 100% of their property value in San Diego (or anywhere in California).  Many VA loans available can go only to 90% but we are able to go all the way up to 100% of the property value.

There are many different reasons a VA eligible home owner may want to get a cash out refinance in San Diego, some are listed below:

  • Pay off higher interest consumer debt.  An added bonus is when higher interest debt is paid off with a cash out refinance, that debt now becomes tax deductible as part of the mortgage and will have a low 30 year fixed rate.
  • A veteran or active military member may want to refinance from a non-VA loan to a VA loan.  For example they may have a FHA loan with mortgage interest they want to refinance into a VA loan that has no mortgage insurance.  Or they may have a conventional loan with a higher interest rate they want to refinance out of to a VA loan with a lower rate.
  • Take cash out to remodel the house.  A VA cash out refinance can give you a low interest way to get cash out to do a major remodel on your home.  This can also increase the value of the home.

There are many, many more reasons a veteran or active military member may want to get a cash out VA home loan in San Diego (or anywhere in California).  And it is nice to have the flexibility to be able to go up to 100% of your home’s value with the new cash out loan.

And remember, veterans who receive VA disability pay get the VA funding fee waived, which make the VA home loan even better.

A VA borrower can go all the way up to 100% of the VA county loan limit in California.  Below are the VA loan limits in some of the major counties in California:

  • San Diego County: $500,000
  • Los Angeles County: $668,750
  • Orange County: $668,750
  • Napa County: 521,250
  • Alameda, Contra Costa, Marin, San Francisco, San Mateo Counties:$987,500
  • Santa Clara County: $823,750
  • Sonoma County: $448,750
  • Ventura County: $546,250

If you have any questions about obtaining a VA home loan in California don’t hesitate to call me at 858-922-7899 or email me at homeloan8@gmail.com.

Rob Chomentowski

Sr. Loan Officer

Affinity Financial

homeloan8@gmail.com

858-922-7899