NEWS FLASH!!!  Attention California Home Buyers & Home Owners!

More about FHA & VA Government loans:

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs were orginally designed during the Great Depression to entice banks to lend again to creditworthy families who do not meet credit and down payment requirements for conventional loans.

FHA & VA loan underwriting standards are now updated and streamlined.  Gone are the days of mulit layered underwriting guidlines and strict property appraisal requirements.  In fact, processing a FHA & VA loans are now the same as conventional Fannie Mae and Freddie Mac loans.  In the past sellers were reluctant to sell to a FHA buyer, but this is NO LONGER THE CASE.  Sellers need to be aware the process is now very easy and streamlined.

Some of the other benefits of FHA financing:

• Only a 3.5 percent down payment is required.  May be a gift from family.
• Closing costs can be financed, up to 6% of the selling price or paid by the seller.
• Minimum 620 FICO score is now required on all FHA & VA loans (new guildline as of 3-1-2009)
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
• Loans are assumable to qualified buyers.

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rates.
• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

If you currently reside in California,  or if you are planning to relocate to California, you can apply for your FHA or VA loan online 24/7 via our secure SSL protected web site: www.LowerOurRate.com

We are registered bankers with HUD, meaning we are deligated to underwrite and approve FHA & VA loans in-house. Fully underwritten loan committments (approvals) are issued in as little as 24 hours in most cases.

Our "green" operations system is totally paperless with saves you time and money!  No need to get in your car and drive in with your paperwork.  Everything is done online.  Of course if your prefer to work face to face, just give us a call and schedule a personal consultation 1-800-764-0035

As of 4-1-2009, or current turn times are as follows:

Approvals = Same Day

Loan Docs = 48 hours

Funding = 48-72 hours

Get your loan approved and funded in as little as 10 days!

Apply online: www.LowerOurRate.com