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FHA loans are backed by the Federal Housing Administration and are designed to help lower-income borrowers buy a home.
In addition to a lower down payment requirement, FHA loans also have more flexible credit score requirements than conventional loans. While the exact credit score needed to qualify for an FHA loan will vary depending on the lender, a score of 580 or higher is generally considered the minimum for most FHA loans.
The FHA loan process in California is similar to the process in other states, with a few minor differences. Here are the steps to getting an FHA loan in California:
Find a lender: You will need to find a lender that offers FHA loans and get pre-approved for a mortgage.
Submit an application: After you have been pre-approved, you will need to submit a mortgage application to your lender.
Get an appraisal: The lender will arrange for an appraisal of the property you want to buy to determine its value.
Review and finalize loan documents: The lender will review your application and supporting documents and finalize the loan documents.
Pay any required fees: In California, you may be required to pay certain fees, such as a loan origination fee, at this stage of the process.
Close the loan: Once the loan documents have been finalized, you will need to sign them and pay any closing costs.
Get the keys: After the loan has closed, you will receive the keys to your new home.
Again, keep in mind that the specific steps in the FHA loan process may vary slightly depending on your lender and location.
By far, the single-largest benefit of the VA loan is that qualified Veterans can purchase without a down payment. This huge advantage allows Veterans and service members to buy homes without having to spend years saving for that typical lump-sum payment.
Here’s another big way the VA loan program saves Veterans money: Having the lowest average fixed rates on the market.
VA loans have had the lowest average 30-year fixed rate on the market for the last six years, according to data from ICE Mortgage Technology.
VA interest rates are typically 0.5 to 1 percent lower than conventional interest rates. Lower rates help Veterans save every month and over the life of their loan.
All mortgages come with fees and closing costs, but the VA actually limits what Veterans can be charged when it comes to these expenses. In fact, some costs and fees must be covered by other parties in the transaction. These safeguards help make homeownership affordable for qualified homebuyers.
What is not allowed for a VA loan?
Real estate attorney fees: Attorney fees are not allowed for VA home loans. Real estate broker fees: You cannot pay for real estate broker fees when buying a home with a VA loan. Agent or Realtor fees: VA borrowers cannot pay real estate agent fees.
What will cause VA loan to get disapproved?
The most common reason why VA home loan applications get denied is because of errors on the application itself. Lenders can’t issue loans unless they’re sure that your personal and financial details are correct. Before you submit your application, take the time to review each statement you make and numbers you enter.
Is there a 90 day rule for VA loans?
You may have heard of a VA 90-day flip rule that says you must flip the home within 90 days of you being on the title. This is not true. Many people confuse the FHA 90-day flip rule with the VA.
The VA does not have any flip rules in its official lending guidelines.
What is the VA 1% rule?
38 C.F.R. 36.4813 limits the fees that a veteran may pay when obtaining a VA-guaranteed home loan.
Veterans may pay a maximum of a one percent origination fee charged by the lender (plus reasonable discount points) as well as reasonable and customary amounts for certain itemized fees.
What is the credit limit for a VA loan?
Eligible Veterans, service members, and survivors with full entitlement
no longer have limits on loans over $144,000. This means you won’t have to pay a down payment, and we guarantee to your lender that if you default on a loan that’s over $144,000, we’ll pay them up to 25% of the loan amount.
Can a VA loan be denied at closing?
Although it’s rare for lenders to deny VA Loan applications, it does happen on occasion.
How often does a VA loan get denied?
VA loan denial isn’t uncommon. According to HMDA data, 12% of VA loan applications received a denial in Q2 of 2022, compared to 17% of FHA loans.
How long does a VA loan take to approve?
How Long Does it Take to Close a VA Loan? Most VA loans close in 40 to 50 days, which is standard for the mortgage industry regardless of the type of financing. In fact, dig into the numbers a bit and you don’t find much difference between VA and conventional loans.
You can find more info at:
Mortgage Loan Officer/ Branch Manager
NMLS: 1501920 I NMLS: 1421 | APM: 1850
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AZ BK 0906702
Licensed by the Dept of Financial Protection and Innovation under the CRMLA
Georgia Residential Mortgage Licensee
Licensed in AZ, CA, GA, TN, TX, WA
All information contained herein is for informational purposes only and, while every effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. PURSUANT TO THE REQUIREMENTS OF SECTION 157.007 OF THE MORTGAGE BANKER REGISTRATION AND RESIDENTIAL MORTGAGE LOAN ORIGINATOR ACT, CHAPTER 157, TEXAS FINANCE CODE, YOU ARE HEREBY NOTIFIED OF THE FOLLOWING: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE, SIGN AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE DOWNLOADED AND PRINTED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENTS WEB SITE AT WWW.SML.TEXAS.GOV.
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