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Guide to California Mortgages
Maybe you are buying your first home in California, or perhaps you're relocating to California from another state. Then again, you may be a long-time California resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on California home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in California:
The median price of a home in California is $211,500. Recently, homes in California have been appreciating at rates well above the national average. As a result, income levels in many parts of California are too low to purchase a median-priced home with a conventional loan. Although average interest rates in California are below the national average, California has one of the lowest levels of home affordability in the nation.
In California, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
California's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. California law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, California law enacted a set of anti-predatory lending laws in order to help protect California homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of California, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for California FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for California's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of California also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, California's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the California Housing Finance Agency.
Last Updated: Wednesday, September 17, 2008
California Real Estate Market View
updated Wednesday, September 17, 2008
| Housing & Social Facts |
California |
United States |
| Total housing units |
12,989,254 |
n/a |
| Owner-occupied housing units |
58.4% |
66.9% |
| Renter-occupied housing units |
41.6% |
33.1% |
| Vacant housing units |
6.9% |
10.8% |
| Average Home Value |
$477,700 |
$167,500 |
| Average Mortgage Payment |
$1,912.00 |
$1,295.00 |
| Average Rental Payment |
$388 .00 |
$388.00 |
| Total Population |
35,278,768 |
n/a |
| Percentage Male |
49.6% |
49.0% |
| Percentage Female |
50.4% |
51.0% |
| Median Age |
34.4 |
36.4 |
| Under 5 years |
7.6% |
7.0% |
| 18 years and over |
72.6% |
74.6% |
| 65 years and over |
10.5% |
12.1% |
|
1 Year Market Value Change for California |
| 1yr | 5yr | 10yr |
 |
|
Popular California Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Anaheim |
328,014 |
$47,122 |
| Bakersfield |
247,057 |
$39,982 |
| Chula Vista |
173,556 |
$44,861 |
| Fremont |
203,413 |
$76,579 |
| Fresno |
427,652 |
$32,236 |
| Glendale |
194,973 |
$41,805 |
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| MortgageOne USA |
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MortgageOne USA is strongly committed to assisting you find the right mortgage product that suit your financial needs. MortgageOne USA fully understands that each borrower has different needs which are why we offer a variety of products to meet your individual requirements. We make the process of securing a mortgage simple and straightforward by offering you the latest in financial tools that enable you to make sound financial choices. Our mortgage professionals will assist through every step of the process to address any concerns or answer any you may have, to make the loan process easy, efficient and stress-free. MortgageOne USA offers a variety of loan programs to meet your needs. We work with the leading lenders in the industry to provide: We do loans for the following: All Credit Categories, Conforming (A Paper), ALT-A and Sub-Prime, Foreclosure Bailout, All Programs, Amortized, Interest Only, Pay Option ARM, Unusual Properties, Bare Land and Manufacturing Home. MortgageOne USA is a D.B.A. of Vineyard Financial Services, Inc.
Auburn, CA 95603
Phone: 530.888.8877
Fax: 866.534.8582
Get a no-obligation California mortgage quote today!
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| Allert Financial |
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The Mission of Allert Financial Corporation is to facilitate the growth of a distinctive and exceptional organization. With an eye toward the future, Allert Financial provides a unique blend of mortgage planning, credit management, and exceptional personal and professional service to generate new business as well as maintain long term clientele. Customers first: Borrowers who are happy with the mortgage loan we helped them get are more important to us than anything else. Our goal is to make the loan process as simple and worry-free as possible. We pride ourselves in offering the highest level of customer service, and appreciate the opportunity to earn your business. Whether you want to refinance for a lower mortgage rate, get a new home mortgage, home equity loan or second mortgage, our purpose is to satisfy your needs. By putting you first, we assure you a pleasurable transaction. Our goal is to keep the customer informed every step of the way whether it is mortgage processing and underwriting to loan closing and funding. 2200 Pacific Coast Highway Suite 303
Hermosa Beach, CA 90254
Phone: (310)798-5707
Toll Free: (877)ALLERT1
Get a no-obligation California mortgage quote today!
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| Providers Financial |
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Finding a mortgage company that you can trust to assist you in obtaining a home loan with the best interest rate and terms, but without a lot of unnecessary junk fees, can be extremely daunting and frustrating. With so many mortgage companies making the same promises about rates, loan programs, services, etc. it can be difficult to decipher a good mortgage company from a bad one. That is why we have put together this inside look at our company so you can see what our customers and vendors are saying about us, as well as where we stand as a business. Best Price Guarantee: We will give you $500 if you are able to find a better rate and payment within 30 days after closing. Proof of lower rate and payment with similar terms and costs, in the form of a legitimate approval from another lender (as determined by Providers Financial in its sole discretion) must be provided within 30 days of your loan closing with Providers Financial. If you are not happy and cancel your approved loan application for any reason, we will pay you $100, upon request. Talk directly with an experienced loan professional who is completely committed to your satisfaction. We understand that the purchasing a home or refinancing an existing mortgage is one of the largest, financial commitments that you will have in your life. We also know that the loan process can be a frustrating, confusing and stressful experience. We make ourselves readily available to address any concerns and answer any questions that you have in order to make the loan process easy, efficient and stress-free. We offer fixed rate mortgages, adjustable rate mortgages, balloon mortgages, refinancing and much, much more!!! 3186 Vista Way 3rd Floor
Oceanside, CA 92054
Tel: 1.800.864.8882 California Finance Lender #603A282
Get a no-obligation California mortgage quote today!
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| Mortgage Partners |
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We know that each customer has specific needs, so here at Mortgage Partners, we strive to meet those specific needs by providing quality service and individual attention. We pride ourselves in giving you the mortgage information, loan options and convenient assistance you are seeking. With a variety of loan programs and an established network of lenders behind us, we will find the loan that best suits your needs, at a very competitive rate. We offer conforming, non-conforming and government loan programs. Let Mortgage Partners guide you through the home buying or refinancing process, and provide you with the best service available. We are a California mortgage broker and a direct lender that specializes in A, B, C & D papers home loans for purchases, refinances or home equity. We have no seasoning requirement use the current market value of your home for refinance or to pull out any equity. We have stated income and no income documentation loans. We offer 2nd mortgages with little or no equity. We offer 2nd mortgages to 125%. We have 100% financing on owner and non owner occupied. We have purchases up to 107% on homes. 4629 Cass Street #247
San Diego, CA 92109
Local: (800)283-7565
Toll Free: (800)283-7565
Fax: (619)702-4482 Mortgage Partners is a real estate broker licensed by the CA Dept of Real Estate License #01157005
Get a no-obligation California mortgage quote today!
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