Purchase Mortgage Loans

31Dec2011
Author:
Scott Sheldon
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Purchase Home Loans from Sonoma County Mortgages

Get A Free Mortgage Quote To Buy A Home!

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Sonoma County Home Purchase Loans made easy and convenient. Looking for a mortgage to purchase a primary residence? How about a purchase mortgage loan for a second home or even an investment property. We offer flexible and competitive mortgage rates for purchase mortgage loans throughout Sonoma County.

Here's how we work:

  • Complete No obligation mortgage rate quote online prequalification form, securely
  • Receive Mortgage loan numbers for your unique scenario
  • Give us a call to discuss to discuss the mortgage loan numbers
  • Select the loan program that makes the most sense for you

Begin a secure online mortgage rate quote request today. Choose from a variety of local mortgage loan programs. We offer fixed rate mortgages and some variable-rate programs.

Get pre-qualified today quickly and securely. Choose the right purchase mortgage loan for your financial situation. Our system allows you to compare loan programs against each other to determine which program makes the most sense for you. Compare mortgage rates on fixed-rate mortgages as well as deciding whether not to pay discount points.

Need help deciding which mortgage loan program makes the most sense? Check out our mortgage tips with the latest news and mortgage loan guidelines or try out our online mortgage calculator for your convenience.

Mortgage Advice

A Free Guide To Sonoma County Home Buying

Learn how to begin the home buying process.

First Time Home Buyer Programs

Research first time home buyer programs for your home purchase.

The Top 10 Reason Why You Cannot Buy A House

Understand the biggest obstacles home buyers have in securing a home.

How The Loan Process Works

See how the loan process works from start to finish.

Steps To Buying A Home: Where To Begin

Here are the steps to buying a home.

Buy A House Without 20% Down

Yes, buying a house without 20% Down is a reality.

Paper Trailing Funds In A Loan Transaction

How to document and source monies used for securing a home loan.

What To Expect When Buying A Home

See what you can expect to happen to decide to purchase a home.

First Time Home Buyer Loan Program Eligibility

Learn the loan programs first time home buyers are eligible for. Some government programs have no down payment requirement!

Investment Property Programs

Find information related to investment property mortgage loans.

Get That Loan Approved!

Learn what the banks want to get your purchase mortgage loan approved quickly.

Browse Q&A

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Recent Questions & Answers

Are There Any More First Time Home Buyer Loans?

Unfortunately not, there is no specific Santa Rosa or Sonoma County first Time home buyer program available anymore. Down payment assistance options come in the form of pulling money out of retirement accounts such as stocks, bonds, IRA and 401(k) options. Another fantastic source for a down payment is gift funds. Many potential homebuyers are also unaware that a security deposit is also eligible money for use for closing costs or or a down payment.

These programs allow for a first-time home buyers to successfully purchase a home:

FHA Loan: allows for a buyer to purchase a home with as little as 3.5% down. Previous short sale, foreclosure or even a previous bankruptcy or even a combination of multiple previous credit challenges is still okay with this financing type. While the credit requirements for this type of financing are incredibly flexible, this is also one of the more pricey types of mortgages available on the market today with mortgage insurance being just over 1% of the loan amount on a monthly basis. Still, this one could be a great bridge loan into purchasing a home and subsequently refinancing in the future into a loan with no or little private monthly mortgage insurance.

Conventional Loan: Can be used to purchase a property with as little as 5% down. 5% down on this type of financing would require a monthly mortgage insurance payment however, approximately half of what the mortgage insurance would be compared to an FHA Mortgage. Alternatively, if a buyer can come up with a 10% down payment, they would be eligible to purchase a home with lender paid mortgage insurance where the mortgage lender actually pays the PMI associated with the mortgage providing a substantially lower monthly payment for an extra 5% skin in the game.

Are you thinking about buying a home in Sonoma County or Santa Rosa, California? If yes, start today by getting a complementary mortgage rate quote.

 

Is USDA Eligible For A Santa Rosa Rosa Mortgage?

No,unfortunately it’s not, the USDA mortgage loan program, is only eligible in certain parts of Sonoma County. Santa Rosa, California is not considered to be a less densely populated area according to US Department of Agriculture. Additionally, Santa Rosa, Rohnert Park, Cotati, and Penngrove are also not USDA eligible. If you are looking for a Santa Rosa mortgage, you would be better served looking at a conventional mortgage or another loan program, that would require a down payment. For any loan other than USDA and the VA, you’ll need a down payment 3.5% the purchase price for FHA and in some cases for a conventional loan 5% down.

A nice lending perk is that all of the down payment even the closing costs can all be gift funds. That’s right mom, dad, aunt, uncle, relative, cousin are all eligible sources for providing gift monies. Do remember that all monies used for gift funds need to be documented with bank statements as well as a gift letter which can be provided by the lender.

Should you be looking at the USDA loan, look outside of Santa Rosa. All of West County is eligible as is Healdsburg, Windsor,  Sonoma are areas that are considered to be less densely populated. There are some limitations to the program, but otherwise can be a very beneficial loan program for the right type of borrower.

Looking for a home loan? Not sure where to start, contact scott [Email address: scott@sonomacountymortgages.comscott #AT# sonomacountymortgages.com - replace #AT# with @ ], to see what homebuying choices are available to you.

Why Is My Financed Loan Amount On My FHA Loan Bigger?

Buying or refinancing a home? An FHA loan much like a USDA loan, has two forms of mortgage insurance. There is an upfront mortgage insurance premium, UMFIP for short, which is based upon 1.75% of the base loan amount ( difference between the down payment amount or appraised value relative to equity) which is then added to the loan, creating the financed loan amount.

The financed loan amount is what the principal and interest payment is based off of as well is what the term of the loan is based off of. Additionally, there is a monthly factor typically about 1.3% of the loan amount before upfront mortgage insurance is factored in. So it’s important to remember when looking at FHA loans there is two forms of PMI, an upfront premium paid to HUD and then a monthly factor as well.

Planning to buy a home? If you have an FHA mortgage now, maybe refinancing might make more sense? Start today by getting a complimentary mortgage rate quote for an FHA loan or another mortgage type its online fast and free.

 

Can I roll the fees into my loan when buying real estate?

When you decide to purchase a home, you’ll have certain hurdles to overcome separate from the real estate purchase negotiation.

Down payment

Depends on which loan program you can qualify for what the property occupancy is. Assuming you’re purchasing a primary home- down payment can be as little as 3.5% or in some cases 0% financing on some government loans including USDA and VA mortgages.

Plan on 10% down for a second home and 20% down if the property is going to be a rental. The down payment is the difference between the purchase price and the loan amount, your skin in the game. These monies are due at close escrow less any earnest money you initially put into the transaction when you made your purchase offer. Some contracts are written up putting in earnest money followed by an increased deposit upon release of loan contingency (the point in the transaction where you fully commit to purchasing the property and would have attained loan approval at this point as well).

Closing costs

Use approximate 3% of the purchase price which includes closing costs  (independent of discount points) and also accounts for prepaid items such as prepaid property taxes and fire insurance if you plan on having a monthly escrow account where the lender pays the taxes and insurance on your behalf. Otherwise, plan on approximately 1.75% of the sales price and paying property taxes and insurance separately.

How to reduce cash to close when buying a house

Seller concession- let’s say you find house for $400,000. You make an offer to purchase the house for $410,000  with $10,000 back for closing costs. This does make your offer the same as it would be if you offered $400,000 without a credit as the seller’s net proceeds are equal.

However, if you ask for a lower purchase price and ask for credit for closing costs your offer becomes weaker because the seller doesn’t receive as much monies to pay off any liens or encumbrances (like loans) they may have on the home, in other words, their net is reduced, thus making your offer weaker. While credits for closing costs are difficult to obtain, it is still a viable option for reducing your cash to close.

Higher loan amount/Less Down-if you can qualify-taking a bigger loan amount will reduce your cash to close. However, higher loan amount means a few things you must be aware of as informed home buyer:

  • higher loan amount means bigger loan-to-value
  • bigger loan-to-value potentially means higher interest rate
  • higher interest rate has the ability to make loan more pricey

Concession Options

Lender credit-a lender credit simply means taking a higher interest rate in exchange for getting a lender credit to absorb closing costs and subsequent cash to close. This option does mean higher interest rate which means a larger interest expense over time unless you plan to repay your principal each month, which could counteract having to take a higher interest rate. In fact, prepaying your mortgage is something you can do anyway to save substantial interest over the term of the loan.

Agent credit- can come from your buyer’s agent or the listing agent or a combination of the two. While this is definitely challenging to come by, it is something that is an option if cash to close becomes tight. Agents earn their commission and work your tail off for you as a home buyer. So use this option as a last resort scenario if you absolutely need additional funds to close.

Trying to buy a home? Want to see how much you get get pre-approved for? Start today by getting a free mortgage rate quote.

 

Do Tax Losses On Closed Business Hurt My Chances To Qualify For A Mortgage?

No as long as the business is actually closed it should not hurt your ability to qualify from an income standpoint. For example let’s say you opened up the side business a couple of years ago, claimed some monetary losses on http://bayarearealestatetrends.com/your tax return, but have subsequently closed the business. Lender will not need to take the losses as a liability against your income which should not have any effect on your borrowing power.

What you’ll need:

  • documentation from the Secretary of State showing the business is in fact closed
  • an explanation of why the businesses closed and why the business losses were taken

However, if you presently own a business that is still running and you’re taking losses or showing lower income to avoid paying higher taxes which is customary showing larger profits, you could very well run the risk of not having enough income to qualify for mortgage loan you may desire. This is the conundrum if you will self employed borrowers deal with.

On one hand of the spectrum if you show maximum profits you’re going to pay income taxes on those profits, but at the benefit of being able to qualify for a loan substantially more easily. The other option is showing lower profits, lower income which keeps the tax man at bay, but at the expense of risking the chances of qualifying for a home mortgage.

Are self employed or own your own business? Been told you can’t qualify for a mortgage? Get a second opinion by getting a complimentary mortgage rate quote for your purchase or refinance today!