Compare California Mortgage Loans from Local Lenders

Rates in California dropped again with low rate home loan offers for jumbo refinance mortgages, VA and FHA home loans. Take advantage of special incentives available to qualified California homeowners looking to refinance their interest only or negative amortization loan into a safer, fixed rate mortgage. Military veterans may qualify for low California mortgage rates guaranteed by the VA.

If you don’t have VA loan eligibility, take advantage of record low California FHA mortgage rates. Homeowners from San Diego to San Francisco are refinancing in high volumes because California mortgage rates have dropped to amazing levels for conforming, FHA and VA home loans. Nationwide was founded as a California Corporation and now has aligned itself with multiple California mortgage lenders. Our lending roots continue to grow beyond the state lines, but our heart and soul can be found in our corporate headquarters in small business friendly town in Encinitas, located on the coast between Solana Beach and Carlsbad.

Shop for the Best California Mortgage Lenders

Interest Rates Drop Again on California Mortgage Loans for 30-Year Lows

Borrowers from the “Golden State” have been active refinancing their jumbo California mortgage loans and we have found that most borrowers still favor interest only for refinance and negative amortization for purchase transactions. Homeowners have found a good refinancing solution with several new refinance products with Fannie Mae, Freddie Mac and FHA.

Unfortunately California borrowers are limited to $625,050 mortgage loan amounts with FHA lending programs, even in high cost areas. Conforming loan limits in California set forth by Fannie Mae and Freddie Mac remain capped at $417,000. For updated information on local loan limits visit us online at FHA Limits in California.

What is the CALHFA zero interest program?

The California Housing Finance Agency (CalHFA) Zero Interest Program (ZIP) is a subordinate loan with a 0% interest rate designed to cover closing costs and prepaid items. It is available through CalHFA’s CalPLUS program, which assists first-time homebuyers with down payments and closing costs. The ZIP loan can be used with both the CalPLUS Conventional and CalPLUS FHA programs.

Here are some key points to know about the CalHFA ZIP:

Interest Rate: Utilizing the ZIP loan will result in a higher interest rate on your first mortgage.

Repayment: While the ZIP loan must be repaid, there are no monthly payments. Repayment is deferred until the first mortgage is paid off, the property is sold or transferred, or the first mortgage is refinanced.

Limitations: The ZIP loan cannot be used for down payments, debt payoff, or to generate cash back. Additionally, it doesn’t allow for additional fees.

California Mortgage Loans up to 100%: Fixed rates have fixed monthly payments!

Includes additional options for lower monthly payments or lower interest rates, and potential tax savings.

We offer fixed rate first and second mortgages that allows customers to know what the payment will be for the entire life of the mortgage.
— Home Mortgage Loans to $3,000,000
— Stated Income Loans to $2,500,000
— Second Mortgage Loans to $500,000
— Sub-Prime Loans to $1,000,000

Closing Costs to Expect When Buying a Home in California

When purchasing a home in California, one important expense to consider is the cost of a home inspection. Before finalizing the purchase, there’s typically a window during which you can arrange for a home inspection to assess the property’s condition and identify any potential issues. If problems are discovered, you may have leverage to negotiate with the seller for repairs or a price reduction.

Home inspection costs usually range from $200 to $500, with larger homes tending to fall on the higher end of the spectrum. Certain mortgages, like VA-backed loans, may require additional inspections, such as termite checks. While these extra services increase costs, they can help uncover significant issues like mold before you move in. Additionally, it’s worth considering radon testing. Although California generally has lower radon risks than other parts of the U.S., some areas, such as Tulare, are identified by the California Department of Conservation’s radon potential map as having higher concentrations. It’s advisable to check whether your property is located in one of these high-risk zones.

If the inspection results are satisfactory and you proceed to close on the home, you’ll need to account for closing costs. These fees can vary based on factors like location, the home’s value, your mortgage lender, and other elements. In California, closing costs generally range from 0.86% to 2.67% of the home’s value, depending on the county.

Should I Cash In on My Home Equity and Refinance My Current Mortgage Loan Before the Bubble Bursts?
By Nick Rian

A Los Angeles Times report highlights an interesting phenomenon in California’s real estate market. Despite a 17% surge in house prices in 2012 following a 3% drop in 2011, homeownership reached record levels instead of decreasing due to affordability issues.

The trend is attributed to Californians’ inclination to use interest-only loans, enabling them to purchase homes beyond their actual affordability. However, this practice becomes risky when fair market values (FMV) start to decline, potentially triggering a downturn in the housing market, leading to concerns about a housing bubble burst.

The San Diego Union Tribune notes that higher interest rates are dissuading prospective homebuyers, leading homeowners to reduce their property prices. The Federal Reserve data indicates that homes’ appraised value made up 145% of nominal gross domestic product in March, surpassing the worth of stocks and mutual funds at 82% of GDP.

The increasing number of foreclosures in California is a cause for concern and could impact mortgage rates. Mortgage companies reported the highest number of home loan default notices in over a decade in the last quarter, driven by declining prices, reduced home sales, and market repercussions from the excesses of the 2003-2005 home-buying frenzy. Data Quick reports that California mortgage lenders filed 53,943 Notices of Default in the April-through-June period, a 15.4% increase from the previous quarter and a significant 158% surge from second-quarter 2023.

Most of the defaulted California home loans originated between July 2005 and August 2006, with adjustable-rate mortgages peaking at 77.8% in May 2005. Homeowners with home equity lines of credit were, on average, eight months behind on payments, owing $3,457 on an average $67,121 home equity credit line.

The rise in foreclosures prompts concerns about potential tightening of California mortgage lending guidelines. David Lehrer, Chief Economist of the National Association of Realtors, previously predicted a continuous real estate boom in his book “Why the Real Estate Boom Will Not Bust and How You Can Profit from It.” However, the recent surge in foreclosures and a plunge in home prices from 2020 to 2023 might necessitate a reassessment of this perspective. The rebound in house values in 2023 due to strong real estate sales and record-low mortgage rates is expected to continue in 2013 and 2014, contributing to a robust California housing sector.

• FHA Home Loans replace subprime mortgages for borrowers with bad credit.
• Foreclosures Rates Rise Simultaneously with Adjustable Rate Mortgages
• Orange County Borrowers seek Fixed Rate Refinancing Solutions
• California Homeowners seek Jumbo Mortgages for Refinancing

Local Spotlight—–California Brokers Get Involved

CENTURY 21 Award, headquartered in San Diego, saw a great opportunity to use the System’s affiliation with Major League Baseball to secure a marketing program with the San Diego Padres, for example. The 13-office company developed a promotional relationship with the Padres that included in-stadium signage, full-page advertisements in the Padres Home-stand game day programs and a creative Easter Seals fundraising and awareness program titled, “Runs for Kids.”

California mortgage brokers and realtors continue to get involved in bettering the community. Even though the California mortgage and real estate industries have seen brighter days, “People just can’t help giving back to California.” The Runs for Kids program raised $12,200 for Easter Seals of Southern California.

The California Department of Housing and Community Development announce the new program accepting applications under the Cal-Home Program.

First-Time Homebuyer Mortgage Assistance
Owner-Occupied Rehabilitation
Homeownership Project Development Loans
For more information, please visit HUD – hcd.ca.gov/fa/calhome

Finance Related State News – California Update

Housing Affordability in California

According to the California Association of Realtors in Los Angeles, the percentage of households in California able to afford a median priced home stood at 14% in November, compared with 19% for the same period a year ago, according to a report released today by the. The minimum household income needed to purchase a median-priced home at $548,400 in California in November was $133,390. The Wine Country, San Luis Obispo and Santa Barbara regions were the least affordable in the state at 7%.

Home-Ownership Increases for Hispanics in California and in the US.
The rate for Hispanics owning homes hit a record 50% in the 4th quarter according to the U.S. Census Bureau. The Census Bureau reported that 50% of Hispanic households own their own homes, up from 48.9% in the 4th quarter of 2004. Alphonso Jackson, the HUD secretary stated that 2 million minority families bought homes in the past 2 years. The U.S. home-ownership rate in 2005 was 69%.

Pick a Payment Loans offer increased purchase power with the lowest possible payment. With interest rates that start at (see lender), it is a good idea to discuss the option arm guidelines with your Nationwide loan officer to see if it is a good fit for your financial plan. Since such a high percentage of these option ARM loans defaulted, most California mortgage lenders have stopped offering payment option and interest only loans.