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Alviso, CA New Home Financing in California

Somerset Mortgage Lenders can find Alviso, CA residents the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help Alviso, CA residents match your needs with a loan you’ll love for as long as you own your home. Somerset Mortgage Lenders can find Alviso, CA residents the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help you match your needs with a loan you’ll love for as long as you own your home.

Fixed Rate Loans

Several categories of conventional loans exist, the most common and familiar being the fixed rate mortgage. In the cases of fixed rate mortgages, the borrower will lock in an interest rate, and pay down both the principal and interest on the loan at that interest rate every month until the mortgage is paid off. The most typical term of a fixed rate loan is 30 years, though fixed rate mortgages can also be obtained for much shorter terms, the primary difference being in the size of the monthly mortgage payment.

Conforming Loans

Other conventional loans are known as conforming loans. In these cases, an arrangement is made between borrower and lender that comply with the stipulations of two federally run mortgage trading companies (or Government Sponsored Entities - GSEs) Fannie Mae (FNME) and or Freddie Mac (FHLMC).

Fannie Mae and Freddie Mac do not directly approve or deny loans. They buy and sell home mortgages, working with lenders to make home ownership easier for people to attain. Lenders like to sign up borrowers with conforming loan, because they can then sell these loans to Fannie May or Freddie Mac in order to more quickly receive the funds coming to them, and use those funds to make other investments. Fannie Mae and Freddie Mac, in turn, then repackage these loans to sell to investors as securities.

The current guidelines for a conventional Fannie Mae loan set a maximum purchase price for a single-family home at slightly above $415,000 (though residents of Alaska, Hawaii, or Guam may be able to qualify for an even larger loan).

The interest rate as well as the short- and long-term pricing on a conforming loan is determined primarily by the type of loan applied for. Also taken into consideration will be the amount of funds you already have to contribute to closing costs, your credit rating, credit score, and credit history, your employment history, and the type and location of the home in question.

Jumbo Loans

Other forms of conventional loans are nonconforming loan instruments that do not meet Fannie Mae or Freddie Mac loan qualifications, such as jumbo loans, or loans so large they fall outside the Fannie Mae and Freddie Mac loan limits (or purchase limits). Jumbo loans are provided by private investors and as such ordinarily come with much higher interest rates than conforming loans.

FHA Loans

Government entities from a local to a federal level and private entities alike have worked to develop loan programs that make home ownership a reality for many people considered under-qualified for traditional mortgages. These include loans for first-time homebuyers and people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA).

HUD and the FHA do not make loans directly, rather they insure loans, meaning that the lender still gets paid back even if you default on the home loan. Often, FHA insured loans are available with down payments lower than 3% of the total loan amount. There is a limit to how high of a loan the FHA will insure, but the limit is at least high enough to allow people in qualifying circumstances to buy reasonably priced homes pretty much anywhere in the country.

Subprime Loans

A different type of loan was also created to assist people with poor credit in buying a home. These are called Subprime Loans. A subprime loan may come in various forms depending on the loan amount, loan terms, and loan-to-value ratio. Your risk is still determined by grading your credit, but in the case of a subprime loan it is to determine the type of loan and interest rate offered you rather than whether or not to give you a loan at all.

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Alviso, California News
San Jose police sketch artist recognized as one of the best in his field

New age music, sometimes even a whiff of incense, floats from the wood-paneled artist's studio next to a bank of holding cells and a wall of weapon lockers in the basement of the San Jose police department.


More grants aid in Alviso adobe renovation

Future improvements and new grants to help renovate the historic but dilapidated Jose Maria Alviso Adobe have been approved by city leaders.


Man accused of killing friend, buying alcohol with his Social...

Police say a homeless San Jose man killed his friend and buried him in a shallow grave near Alviso, and that the suspected killer spent the next four months cashing the dead man's Social Security checks to buy ...


Milpitas school board trustee running for county school board

Milpitas Unified School District Board of Education member Carmen Montano decided not seek re-election to the local board in the Nov.


College prep middle school opens to help push kids onto college.

A small South Bay community finally has its first middle school and Tuesday was the first day of classes at the new Downtown College Preparatory School in Alviso.


Rescuers hope to save 200 feral cats in San Jose

One of 200 cats at a former horse ranch in San Jose that will have to be euthanized if a home cannot be found for it.


Famous tale inspired by valley dog, estate

If you're of a certain age - OK, don't stand up at once - chances are that you were required to read Jack London's masterpiece, "The Call of the Wild," in the seventh grade.


Backstreet Shuffle

I N 1980, San Jose carved itself up into what's often lambasted as the "mini-mayor system," a fragmented balkanization of 10 jagged, haphazard regions represented by 10 councilmembers with their own individual ...


North San Jose development compromise reached

San Jose's City Council and developers reached an agreement Tuesday that advances a plan to build 32,000 homes and create 83,000 jobs in the area.


Alviso Slough Restoration Project is Outside of Water District's Core Mission

Alviso sits at the foot of San Francisco Bay, where Coyote Creek and the Guadalupe River wind through sloughs on their way to the sea.


Alviso Slough Restoration Project is Outside of Water District's Core Mission

Alviso sits at the foot of San Francisco Bay, where Coyote Creek and the Guadalupe River wind through sloughs on their way to the sea.


Alviso river project raises hopes, tensions

Dick Santos was only 11 years old, but he still vividly remembers when flood waters raged out of the Guadalupe River toward his family's home in Alviso.


Santa Clara water board praises part-time CEO, extends high-pay contract

The Santa Clara Valley Water District today extended the contract of its interim CEO, continuing a relationship in which she will work part-time and receive $432,000 this year by drawing both a state government ...


Man survives being hit by train near Fremont

A 43-year-old man suffered head injuries and a compound fracture of his right arm Monday night when he was struck by a commuter train passing through an area near Drawbridge, an abandoned town in the marshlands ...


Police Blotter

Albert Way, 3:12 a.m. June 27 A man and woman acting "suspicious" in a vehicle were determined to be under the influence.


Herhold: Water board's latest drain: public gazebo

For a journalist, the beauty of the Santa Clara Valley Water District - the Golden Spigot - is that its leaders never learn their lessons.


Herhold: The best ways to fritter away time

The ballots are in, and so are the winners. A couple of weeks ago, I asked readers how they might while away an hour or two without BlackBerries, the Internet or expenses of more than $15. And as summer begins ...


Marks Art Img

San Jose Mayor Chuck Reed dangled a $45 million carrot in front of Santa Clara school district leaders in hopes of heading off a ballot measure to impose a $30,000-per-unit tax on houses built in North San ...


Biz break: Google's Brin reserves seat for space flight

Google's rocket-man: Google co-founder Sergey Brin put down a $5 million deposit with Space Adventures, reserving a chance to orbit the Earth some day.


Planners Hope To Make Alviso Into 'Sausalito Of South Bay'

South Bay residents may need to use their imagination to envision a city like Sausalito in their neck of the woods.


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"Every other company said they could not help us. After speaking to about five companies, we really believed that no one could. Then we called Somerset, and your company proved us and those other companies wrong. We can't thank you enough for all your hard work and effort in getting us a low fixed rate. We can now breathe easier..." - L. Braun
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