Somerset Mortgage Lenders Mortgage Refinance, Reverse Mortage, Home Loan
  Reverse Mortgage Divorce Buyouts Debt Consolidation Home Improvement Purchase Refinance
Search Somerset:
Print this page    E-mail this page

CA New Home Financing in California

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

Local new home financing directory for CA :
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Vacaville Valley Village Vernalis Vina
Valencia Valyermo Victor Vineburg
Vallecito Van Nuys Victorville Vinton
Vallejo Venice Vidal Visalia
Valley Center Ventura Villa Grande Vista
Valley Ford Verdugo City Villa Park Volcano
Valley Springs

Return to our new home financing page

Bad Credit? click here.

Call for COMPLETE details NOW!

(800) 675-9783

California News
State Senate Nears Vote On Democratic Budget Plan

The state Senate is expected to vote on a Democratic spending plan similar to the one outlined last week by Gov.


Prop. 11 backers file complaint against Perata

Backers of an initiative to change the way California draws its political districts filed a complaint Thursday against Senate President Pro Tem Don Perata and the state correctional officers union charging that ...


Boy Dies After Being Stabbed With Pen

A 13-year-old California boy who was stabbed with a ball-point pen during a fight over the weekend has died from his wounds, officials in Williams confirmed Wednesday.


California Prisons Prepare For Same-Sex Weddings

Now that same-sex couples can get married in California, state prison officials are trying to figure out what that means for gay inmates.No prisoners so far have sought to arrange weddings with same-sex ...


Drive less, pay less for insurance?

The less California motorists drive, the less they might pay for auto insurance under regulations proposed Wednesday.


Some charges dropped against NY-based designer

Prosecutors dropped more than half the sexual assault charges against New York-based fashion designer Anand Jon Alexander just before jury selection began for his trial.

The district attorney's office, without giving an explanation for its actions, said on Wednesday that it was striking 30 of the 59 charge but reserved the option of pursuing them later. The charges involved 10 women and girls.

The remaining 29 charges range from forcible rape to committing lewd acts on a child. The 10 alleged victims were 14 to 21 years old.


Calif. Voters Oppose Gay Marriage Ban

A majority of California voters oppose a ballot initiative to ban gay marriage, though they are evenly split on the practice itself, according to a poll released Wednesday.


Layer42 enhances Californian

' August 27 2008 - ' Californian network and services company Layer42, based in Santa Clara, has improved its network and quality of services following an installation of equipment from Transmode, a leading ...


Calif. lawmakers reject ban on fire retardants

A bill that would have phased out the use of fire retardants that some fear are harmful to human health has died in the state Legislature.


Schwarzenegger Could be No-Show at GOP Convention

When the Republican convention opens Monday night, its prime-time lineup could be missing one of its biggest draws: California Gov.


McCain, Leno trade jibes

Republican John McCain traded jibes with "Tonight" show host Jay Leno, with his age and houses the main target but McCain turned serious to defend his wife's family wealth.


Calif., Nevada Show Biggest Housing Price Drops Compared to 2007 2Q

Find the lowest gas prices around town! Medical Minutes It's Not Just Politics Great local and international recipes right here! Looking for a great place to eat? Check out the Featured Restaurants or search by ...


Highway 101 Bandit pleads guilty

A Napa resident, dubbed the Highway 101 Bandit, today pleaded guilty to 20 charges in connection the robbery of 20 banks throughout California and Utah, the U.S. Department of Justice announced.


Governor to sign bill on high-speed rail plan

Backing off his pledge to sign no bills before lawmakers adopt a state budget, Gov.


Calif. Parolees Released Without Proper Review

Nearly 5,000 California parolees -- including hundreds of sex offenders and those convicted of violent felonies -- have been released from supervision without proper review, according to a state audit released ...


Arnold Schwarzenegger says he will sign some bills despite budget impasse

SACRAMENTO -- He drew a line in the sand a few weeks ago, vowing to veto every bill that reached his office before a state budget was in place.


Calif. stop-smoking campaign saved $86 billion: report

CHICAGO - California's large-scale tobacco control campaign has saved $86 billion in health care costs in its first 15 years, U.S. researchers said on Monday.The $86 billion reduction in health costs, based on ...


Calif. AG: Some medi-pot dispensers may be illegal

Medical marijuana dispensers that operate for-profit likely violate California law, according to guidelines that may encourage local police to join a federal crackdown against the enterprises.

State Attorney General Jerry Brown said Monday that formal cooperatives registered under the state's Food and Agricultural Code or organized as less formal 'collectives' are legal under the law.

But he said anyone running a for-profit storefront dispensary not operating as either a registered cooperative or collective may be arrested and prosecuted by local authorities.


Dan Walters: California is borrowing like there's no tomorrow

A well-established economic principle, called the "wealth effect," holds that consumers' spending is influenced more by their sense of well-being than by their incomes.


Christopher Plummer generates star power as Caesar

STRATFORD, Ontario : Is there anything Christopher Plummer can't do? Maybe walk on water, although I wouldn't be surprised to see the man skimming the surface of the Avon River that snakes through the heart of ...


Save time with our easy online mortgage application.
With Somerset's many FHA home loan programs, owning your dream home is more than just a dream.
 
"Our family would like to thank Somerset Mortgage Lenders for getting us out of foreclosure. Without your help we do not know what would have become of our family. When we first called, we were in Chapter 13 bankruptcy...Not only will we now be able to keep our home, but we'll be able to put ourselves on track financially, thanks to all the efforts of the wonderful people at Somerset. We will be forever grateful to you all." - Scott & Amy
© 2006 Somerset Investors Corp. All rights reserved.
home | about us | Mortgage Blog | contact us | privacy policy | state licensing | search | links | link to us | site map
mortgage calculators | refinance | purchase | fha | reverse mortgage | divorce buyout | debt consolidation
Eqaul Housing Lender Member of the Better Business Bureau (BBB) Member of the National Reverse Mortgage Lenders Association (NRMLA)