California Mortgage Rates
July 29, 2016 08:00 AM Eastern
California Mortgage Rates and Loan Options
California is the most populous state in the country, and it is also one of the largest in terms of land mass. Its entire western coast is bordered by the beautiful Pacific Ocean, providing a temperate climate year round for much of the southern part of the state.
Several areas in California have achieved global notoriety, including San Francisco, the financial hub of the West Coast; Napa Valley, home to one of the largest wine regions in the world; and of course Los Angeles and Hollywood, the entertainment capital of the world.
Up and down the coast, residents of California enjoy nature's diversity, from arid desert landscapes to exclusive ocean enclaves, and lush farming regions to sprawling metropolises. Regardless of the area in which you choose to live, you'll find almost limitless possibilities for home choices, loans, and mortgage rates programs in California.
Special California Mortgage Rates, Loans and Down Payment Assistance
The California Housing Finance Authority makes available special programs for first time home buyers and those who have not had ownership interest in a home over the last 3 years. Eligible applicants have to meet a threshold income level, a maximum loan amount, and a home sale price limit. In some cases, the programs allow the borrower to:
- purchase a single family home, including a condo, PUD or manufactured home
- receive down payment assistance up to five percent of the purchase price of the home as a second mortgage
- obtain more than a 100 percent combined loan-to-value ratio
The California Department of Housing and Community Development offers more than 200 additional programs to homeowners and buyers including government subsidies, interest free loans, competitive current California mortgage rates, and grants.
Jumbo Loans and CA Mortgage Interest Rates
The FHA insures loans up to $417,000 through its lending partners. These are called conventional conforming loans. Many areas in California are high cost areas and have home values significantly above that threshold limit. Buyers of these homes have to use financing options other than the FHA. These loans are called jumbo loans, and are not typically insured through the FHA or other government-backed institutions. Despite this fact, and because of their popularity, jumbo loans in California are still made available through hundreds of traditional banks and lending institutions. CA mortgage interest rates for jumbo loans vary greatly, so borrowers should shop around.
Due to higher loan values and higher loan payments, qualifying for these loans can be difficult. Borrowers seeking a jumbo loan should contact their lender and request documentation sheets listing income and credit score requirements. To estimate your future jumbo loan payments, you can use one of many lendingtree.com mortgage calculator tools.