A type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trend, are made up of Conventional Mortgages. Conventional loans can be either a Fixed rate mortgage or an Adjustable Rate Mortgage (ARM).

Fixed Rate Mortgages

A fixed rate mortgage means the interest rate and the principal payments remain the same for the entire life of the loan. (Taxes and insurance of course may change). 

Advantages: Consistent principal and interest payments make the loan stable your rate won't change, so you don't have to worry about rising payments. A good choice if you're likely to stay in the hous for a long time.

Disadvantages: May cost you slightly more, these loans are usually priced higher than an adjustable rate mortgage.

Types of Fixed-Rate Mortgages:

40 Year Fixed-Rate

30 Year Fixed-Rate

20 Year Fixed Rate

15 Year Fixed Rate

!0 Year Fixed Rate

FHA (Federal Housing Administration) loans were created by the Federal Government to provide affordable financing for qualified borrowers. FHA insures the loan, therefore limiting the risk of thelender. The borrower pays an upfront insurance premium which is approximately 1.75% of the loan amount. This money can be either paid in full at time of closing or it can be financing directly in the loan amount. In addition to this fee, the borrower pays a monthly premium of .55% of the loan amount (divided by 12 months). The FHA requires a down payment of 3.5%. This money can be a gift. No cash reserves are required. FHA guidelines are generally more relaxed in cases of bankruptcy, alternative credit and higher debt to income ratios. FHA interest rates are competitive with Conventional rates.

VA mortgages are insured by the Department of Veterans Affairs and are available to military service veterans, reservists and active-duty service members. These loans make home financing easier and more affordable by offering some of the most generous approval requirements of any mortgage program. Eligible borrowers can receive up to 100% financing with no down payment required.

A Reverse Mortgage is a loan available to seniors 62 years and older and is used to release the equity in a property as one lump sum or multiple payments. The homeowners obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g. into aged care facility).

To qualify for a reverse mortgage the borrower must be at least 62 years old. There are no minimum income or credit requirements, but there are other requirements and homeowners should make sure that they qualify for the loan before they invest significant time or money into the process. The monies received can be used for any purpose. The borrower must payoff any existing mortgage(s) with the proceeds from the reverse mortgage.

Some dwellings do not qualify, while others (like mobile homes) have special requirements in order to be approved.

Before borrowing, applicants must seek third party financial counseling from a source which is approved by the Department of Housing and Urban Development. The counseling is for the borrower to make sure they completely understand how this type of mortgage works.

The CalPERS Member Home Loan Program offers members security, protection, and choice when purchasing or refinancing a home. The program is available nationwide through more than 40 approved lenders.

All active, inactive, and retired members of CalPERS, the Legislators' Retirement System, the Judges' Retirement System, and the Judges' Retirement System II are eligible to participate.

The program offers both fixed and adjustable rate loans, 90 percent loan financing, special loan programs, rate lock options, and more.

The California Department of Veterans Affairs and its CalVet Home Loan program is committed to helping veterans and active duty personnel attain the American Dream of home ownership

Cal Vet offer below market interest rates with low or no down payment that increase your purchasing power and keep your payment down. CalVet offers  expanded eligibility so that nearly any veteran wanting to buy a home in California is eligible.

Whether you are dreaming of buying a new home, lowering your existing payments, or taking cash out, the CalSTRS Home Loan Program can help by offering competitive rates on a variety of mortgage loan programs:

• Conventional 15 or 30 year Fixed Rate Program — Competitive rates are available for buying a new home or refinancing to meet your individual needs. Mortgage loan amounts are available up to $834,00.
• 80/17 Program — Qualifying for a larger home mortgage is now available because of the low payment during the 5-year second mortgage deferral period.Mortgage loan amounts are available up to $650,000.

Offering 100% financing with no down payment, this Guaranteed Rural housing Loan Programs provides compelling affordable housing options.

Properties must be located in eligible rural areas. Income limits are 115% of U.S. median. No monthly mortgage insurance premium payment is required.

Through the Federal Housing Administration(FHA) 203k mortgage insurance program, borrowers can purchase or refinance their home and include the costs to rehabilate and repair it in the same loan.  Up to $35,000 above the purchase or appraised value maybe be financed for rehabilitation needs.