LOAN PRODUCTS

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• Fixed-Rate Mortgages (FRMs): A loan with a fixed interest rate for the entire term, typically available in 15, 20, or 30-year terms. It offers stability with consistent monthly payments.
• Adjustable-Rate Mortgages (ARMs): ARMs have a lower initial interest rate that adjusts periodically based on market conditions. For example, a 5/1 ARM offers a fixed rate for the first 5 years, then adjusts annually.
• Conforming Loans: Loans that adhere to Fannie Mae and Freddie Mac guidelines. The 2024 conforming loan limit is $766,550 in most California counties, higher in high-cost areas like the San Francisco Bay Area.
• Non-Conforming (Jumbo) Loans: For homes that exceed conforming loan limits. Jumbo loans are common in California due to higher property prices, and they typically require a higher credit score and down payment.

• FHA Loans (Federal Housing Administration): Ideal for first-time buyers or those with lower credit scores, offering down payments as low as 3.5%. FHA loans also have flexible qualification standards.
• VA Loans (Veterans Affairs): Available to veterans, active-duty service members, and eligible family members. VA loans offer benefits like no down payment, no private mortgage insurance (PMI), and competitive interest rates.
• USDA Loans (United States Department of Agriculture): Designed for rural and suburban homebuyers, USDA loans offer zero down payment for eligible properties in designated areas.

• California Housing Finance Agency (CalHFA) Loans: Aimed at first-time homebuyers, CalHFA offers a variety of programs, including conventional loans and FHA-backed loans, along with down payment and closing cost assistance.
• CalPLUS FHA/Conventional Loans: Offers extra down payment assistance with deferred interest to help cover closing costs or down payments.

Jumbo Loans: These loans exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In high-cost areas of California, they are commonly used for more expensive properties. Jumbo loans require stricter qualification, often including a higher credit score and a larger down payment (typically 10-20%).

Interest-Only Mortgages: These allow borrowers to pay only the interest for an initial period (usually 5-10 years), after which they start paying both principal and interest. This product can be useful for buyers who expect their income to increase in the future or investors looking to minimize payments.

HomeReady (Fannie Mae) and Home Possible (Freddie Mac): These programs are designed for low- to moderate-income borrowers with down payments as low as 3%. They offer flexible credit requirements and are available to first-time and repeat buyers.

Bridge Loans: Short-term financing for buyers looking to purchase a new home before selling their current one. These loans "bridge" the gap, allowing homeowners to access equity from their current property.

Home Equity Conversion Mortgage (HECM): Reverse mortgages allow them to convert home equity into income without having to sell the property.

Temporary Buydown Programs: In some cases, buyers can use temporary buydown options (like a 2-1 buydown), where the interest rate is reduced for the first few years of the loan before resetting to the standard rate. This can help lower initial payments.