Call Lee now (323) 717-1144
Call Chris now (909) 841-3058
Call Lee now (323) 717-1144
Call Chris now (909) 841-3058
Call Lee now (323) 717-1144
Best Mortgage Rates Available. When choosing a loan program that is right for you it is important to take into account the pro’s and con’s of the different types of loan programs.
VA Loan (Best Mortgage Rates Available).
Zero down payment.
No Mortgage insurance.
Assumable by another Veteran.
If you have served our country then 1st off … THANK YOU FOR YOUR SERVICE.
One of the many benefits that the U.S. Government gives our veterans is use of the VA loan. The Veterans Administration does not give VA loans. The VA insures VA loans. The VA basically tells the investor-bank-lender that the VA will insure 25% of the VA loan to county loan limit.
The VA also sets the loan limit for zero down payment on the VA loan. See loan limits here LINK.
People often get confused believing that the county loan limit is the max amount the the VA loan is good for. Rest assured the VA loan can go into the millions if the rest of the requirements are met.
After you reach the loan limit then 25% of the additional amount is to come from the Veteran for the VA Loan. I have personally funded many 1.2 Million dollar VA loans. The VA loan is not driven by “loan to value” or “debt to income” but is driven by “residual”. Residual is a calculation that is unique to the VA loan that takes all income into account, then all debts including Federal taxes, State taxes, and housing maintenance fee, and members of the family supported by the Veteran. Then the liability calculation is compared against the income of the Veteran (side note income can not be grossed up to meet residual only for DTI ratios).
The VA residual amount is set by the VA and varies based on location. If the Veteran meets the residual then the “debt to income” ratio is not necessarily a disqualifying factor. The VA loan has many unique characteristics, I.E. “VA non allowable s” these are fees that are not allowed to be paid for by the veteran and must be paid for by another party. VA also mandates a termite inspection for the protection of the veteran.
The great news is that the VA loan allows you to get the best mortgage rates available. IMPORTANT if you are “Service Connected” then you MUST request the “COE” Certificate of Eligibility and ensure that it notes “Veteran exempt from VA funding fee” This will literally save you Tens of thousands of dollars as the VA funding fee is 2.15% ($9,118.15 of loan limit in San Bernardino and Riverside county) of the loan for the 1st time use and 3.3% ($13,995.30 of loan limit in San Bernardino and Riverside county) of loan amount every use there after.
A great benefit of the VA loan is the VA IRRRL loan. This loan is only used for one purpose, lower the interest rate. NO Cash out, NO fix up the house, NO wave runners… just lower your interest rate, Best Mortgage Rates Available.
If you are a veteran, do yourself a favor and call me, Lee Duran (323) 717-1144 You can even visit me on YELP.
This is Lee Duran in front of a fighter jet in his military days.
FHA Loan (Best Mortgage Rates Available).
If you are a first time home buyer then maybe the best loan for you might be an FHA loan.
3.5% down payment.
Higher DTI (debt to income) ratios allowed as compared to conventional loans.
Gifts allowed to qualify.
Down payment programs tend to compliment the FHA loan.
580 FICO scores allowed with proper compensating factors.
When it comes to home loans FHA is the starting point for most people, reason being low down payment and better DTI allowances.
FHA does have mandatory “mortgage insurance” that is set by the Federal Housing Administration aka FHA click here to see them LINK.
Congress created the Federal Housing Administration (FHA) in 1934. The FHA became a part of the Department of Housing and Urban Development’s (HUD) Office of Housing in 1965. FHA set loan limits they can be seen HERE.
FHA insures loans given by lenders. For most people buying a home for the first time they are looking for lowest down payment possible and FHA allows you to buy your home with only 3.5% down. If you put 3.5% then the mandatory MI mortgage Insurance is .85% and is permanent . If you put 5% down then the mandatory MI is .80% and is permanent. If you put 10% down then the MI is .80 and will be removed after 11 years. Like with all loans, attention is given to the borrowers ability to pay the loan back and the risk to the lender. If there is very little “skin in the game” then the mortgage insurance will be higher protecting the lender, and conversely if there is more money put down then the lender has less risk so the mortgage insurance is less and the FHA allows the release of the MI if 10% is put down. FHA is a good starting loan and it should be known that FHA is for owner occupied properties only. Investment folks, we will cover your loan in the next segment. We are always trying to get you the Best Mortgage Rates Available
Conventional Loan (Best Mortgage Rates Available).
620 FICO Score
No mortgage insurance with 20% down
50% DTI ratio
Now we are at the “conventional loan section of this page. Conventional loans are great for those who have a large amount to put as a down payment or want to have the mortgage insurance to fall off at 80% LTV (loan to value). The big difference between and FHA loan and a Conventional Loan is the DTI ratio, FHA allows a larger ratio and thus more buying power. Almost everyone that I talk to wants nothing to do with mortgage insurance, and quite frankly neither do I. I do understand that it is a necessary evil and build a mortgage plan around getting out of paying PMI and getting you Best Mortgage Rates Available
The list needed to start the home loan with the best mortgage rate can be seen HERE.
Down payment assistance(Best Mortgage Rates Available).
There are many down payment assistance programs out there.
Here are are few of my favorites
The platinum program is a grant, you do not have to pay it back…there is a catch though… the interest rate is set by Golden State Finance Authority and is usually higher than your standard FHA interest rate. You can see the rates and see that Wholesale Capital Corporation is a authorized lender on this page HERE.
When I use a Platinum program to help a buyer get into a home I will usually plan an FHA streamline refinance for 6 months after the closing of the loan due to the fact that I want my clients to get the best of both worlds, grant to get in the home and lowest interest rate available.
Cal Hafa Program.
In general these are borrower eligibility requirements for all CalHFA programs:
- Must be a U.S. citizen, permanent resident or other qualified alien.
- You will need to meet credit, income limits and loan requirements of the CalHFA-approved lender and the mortgage insurer.
- Borrower will need to live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
- CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
- CalHFA’s down payment programs MyHome and ECTP and the MCC require you to be a first-time homebuyer. See the definition of a first-time homebuyer.
Each of the programs has its pros and cons. When we talk we will consider all options and move forward on the best situation available for you.
Credit Score (Best Mortgage rates available).
Make no mistake about it, your credit score is crucial to getting a home loan and the best mortgage rate available.
520 = VA maybe
580 = FHA maybe
620 = Conventional maybe
These are the floor limit FICO scores on home loans. If you are at the lowest then you will need compensating factors.
Compensating factors = more money down.
The truth is that if you put enough money down then the loan is not very risky and you are more likely to get approved.
If you are needing to better your credit then Chris Dominguez and Lee Duran have methods and professionals that we can utilize and or send you to. Many times people come to us with challenged credit and we are able to correct many inaccurate issues from our software programs and knowledge of the credit industry. If we are not able to fix it ourselves then we have people that we send our clients to.
Here is a little life hack that we have figured out, If you deliver a lot of customers to a business the business tends to treat your customers better because you are a large stream of revenue. Chris Dominguez and Lee Duran run a high producing loan officer team in Southern California and because we send a lot of clients to credit repair companies our clients tend to get top notch treatment. Chris Dominguez and Lee Duran have a simple philosophy… ” We want to be your Loan Officer for life, not just this transaction”. The loan business is a competitive business and like any competitive business customer service is the key. Chris and Lee work hard to get you the best mortgage rate available and always remember that they work for you.
If you are a Realtor and you made it this far down the page… WOW!
You must be serious about growing your business and getting your clients the Best Mortgage Rates Available.
Chris Dominguez and Lee Duran work hand in hand with high producing realtors and we help you get more clients/listings.
Chris and Lee utilize Video, Social Media, Facebook, Linkedin, Instagram. Twitter and the power of the internet. Chris and Lee can take a brand new realtor that is willing to do the work and make them a top producer in a very short period of time. Chris and Lee know what the business is about, what works and what does not.
Most new realtors have these questions…
Should I use/pay Zillow? Realtor.com? Trulia? Kunversion? BoomTown? TopProducer? Tom Ferry? Mike Ferry? Core Training?
Because Chris and Lee have worked with hundreds of Realtors over the years they have the access to know which system works and which ones do not.
If you are interested in meeting with Chris and Lee then reach out to either one.
Fair warning if we do work together you will get more business.
You can see some of our work here