Loan Programs

* Derek and his team can only lend in the State of California

Your mortgage solution begins with more mortgage choices. You’re unique. The mortgage that will work for someone else simply may not be the best mortgage for you.  That’s why C2 Financial offers the widest variety of mortgage options. It is important that you understand the features of your home loan and that it meets your financial needs and I can assist you in that determination. C2 Financial offers more mortgage financing options as the big banks and at lower rates, faster turn times and often with A LOT less hassle.

As California’s largest and most productive whole mortgage broker, C2 Financial provides choices, convenience, and control throughout the loan process. Below is a sampling of just some of the programs available through C2 Financial.

 

Our growing loan portfolio includes:

  • Conforming Fixed Rate Loans – as low as 3% down
  • Conforming Adjustable Rate Loans (3/1, 5/1, 7/1 and 10/1 ARM’s)
  • High Cost Conforming Jumbo Fixed Rate and Adjustable Rate Loans (County specific)
  • Jumbo / Super Jumbo up to $10 Million
  • VA loans – as low as 0% down
  • 1% down NO Mortgage Insurance (up to $424,100)  1PercentDownMortgageLoan.com
  • FHA  loans – as low as 3.5% down
  • All in One Mortgage LoanPay Principle BEFORE Interest
  • Reverse Mortgages / Home Equity Conversion Mortgages (HECM) – Get the truth!
  • Interest Only Loans
  • Condos in Litigation – OK!
  • The best portfolio loan programs available in the market place today (click here for a sample list of portfolio loans)

Whether you’re buying or refinancing, I’ll work with you to help you choose the right mortgage for your needs, and explain the best options for your budget, lifestyle and future. At C2 Financial, you’ll have more choices and more expert help, so you’ll get the best solution.

 

Learn more about C2 Financial’s loan options:

CONFORMING FIXED RATE LOANS – Click Here to go to the main Conforming loan page

Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit.” The conforming loan limit of $424,100, which is set annually by the Federal Housing Finance Agency, is based off of the mortgage loan amount, not the value of the home. Loans above this limit are known as either High Cost Conforming loans or Jumbo loans.

Fixed rate mortgages are the most common and popular loans available because they never change.  We offer our borrowers the choice of 30, 20, and 15-year fixed-rate mortgages. These loan programs have the same interest rate for the life of the loan and monthly payments (principal and interest) that never change. If you escrow your property taxes and insurance (include them monthly in your payment), those expenses can change, which will affect your monthly payments. A fixed-rate mortgage may be a good choice if you plan to stay in your home for a long time or if you feel more comfortable knowing your payment cannot change. Why consider a Fixed Rate Loan? If you plan to keep your home for a long time and you would like to minimize your monthly payment, a 30-year fixed-rate loan might be your best option.  Or, if your goal is to reduce the total interest you pay over the life of the loan, and you can afford a slightly higher monthly payment, lower terms such as 15 years can reduce interest costs significantly.

Advantages of a Fixed Rate Loan are:

  • Monthly payments are fixed over the life of the loan
  • Can require a low down payment, sometimes only 3 or 5 percent
  • Interest rate does not change
  • Protected if rates go up
  • Can refinance if rates go down
  • Regular payments with no surprises

Disadvantages of a Fixed Rate Loan are:

  • Higher mortgage rate
  • Higher mortgage payments
  • Rate does not drop if rates improve
  • If you prepay your mortgage, you can’t get that money back out without refinancing

Call Derek today to get your personalized rate quote for a fixed-rate mortgage.

 

CONFORMING ADJUSTABLE RATE LOANS (ARM’s) – Click Here to go to the ARM main page

These popular loans—also called 3/1, 5/1, 7/1 or 10/1 ARM’s—can offer the best of both worlds: lower interest rates and a fixed payment for a specific period of time. For example, a “5/1 ARM loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. To keep this risk in check, charges on rate adjustments are limited with “caps.” Caps are a common feature of ARM’s, and they limit the total rate change over the life of a loan.

Why consider an ARM?

  • Lower rates.  ARM’s generally have the lowest possible mortgage rate. In fact, ARM rates, such as that of a 7/1 ARM, can be approximately 1% lower than that of a 30-year fixed-rate mortgage. The 7/1 ARM rate would be fixed for seven years, potentially saving you thousands in interest expense that you could use, for example, to pay off credit card debt, or add to your retirement savings.
  • You plan to sell your home soon. If you plan to sell your home before the loan adjusts, you may save money versus a fixed-rate loan. For example, if a job transfer is likely, an ARM would be a better solution than a higher rate, 30-year fixed-rate mortgage. The lower initial rate of an ARM can be a good strategy for mobile professionals, homeowners who plan to upsize or downsize, and anyone who will live in their home for the short term.
  • You want “more house.” By applying for an ARM, you may qualify for a higher loan amount and can buy a more valuable house.

Call Derek today to get your personalized rate quote for an adjustable rate mortgage.

 

HIGH BALANCE CONFORMING JUMBO FIXED RATE LOANS AND CONFORMING JUMBO ADJUSTABLE RATE LOANS

Government Sponsored Entities, Fannie Mae and Freddie Mac, new conforming-jumbo loan limits make it easier and more affordable for more buyers to “move up” and purchase higher-value homes, or save substantially by refinancing their jumbo loan. Lower FICO score and down payment requirements, lower-than-jumbo rates, and loans amounts of up to $636,150 in some areas create a powerful alternative to a traditional jumbo loan.  TIP – In San Diego County, the maximum conforming high balance loan limit is $612,950.  To see what the conforming loan limits are in your county, please click here https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limits-Map.aspx 

Call Derek today to get your personalized rate quote for a Conforming Jumbo Fixed Rate mortgage.

 

JUMBO / SUPER JUMBO LOANS

A jumbo mortgage is a loan for any amount above the Conforming Loan Limit that is set annually by the Federal Housing Finance Agency.  Jumbo Loans are not eligible for purchase by Fannie Mae or Freddie Mac, two government sponsored mortgage corporations, and must be sold in the secondary market – which means they carry slightly higher interest rates. C2 Financial is a leading provider of jumbo loans. As an experienced jumbo and super jumbo mortgage lender, we offer a variety of programs with competitive rates and beneficial features. C2 Financial offers 30 and 15 year fixed rate mortgages as well as Adjustable Rate Mortgage (ARM) products for jumbo loans up to $10 million dollars. For the homeowner with bigger borrowing needs, a jumbo mortgage provides the opportunity, convenience, and security to purchase or refinance a larger, more expensive home. And, with our established private banking relationships and multi-lender platform, we have even more options available for those who seek higher loan amounts.

Our jumbo loan products offer significant benefits including, but not limited to:

  • Some of the lowest rates available in today’s market
  • Financing up to $10 million
  • Up to 80% LTV to $2,000,000
  • Up to 75% LTV to $3,000,000 (county specific)
  • Up to 70% LTV to $5,000,000 (county specific)
  • Purchase, refinancing and cash-out refinancing options
  • Unlimited cash out on owner-occupied properties and second homes
  • Fixed rate and adjustable rate mortgage programs
  • Interest-only option available
  • Recently Listed Properties – OK to refinance!
  • No add’s to the rate for high rise condos
  • Pending Litigation – case by case – ask me for what is needed
  • Fast turn times
  • Gift Funds Allowed for Down Payment on Purchase Loans
  • Eligible properties include primary residences, second homes and investment properties
  • Non Permanent Resident Aliens – OK!
  • Jumbo Purchase of Owner Occupied Property – borrower can own UNLIMITED 1-4 unit properties
  • Jumbo Purchase of Investment Property – borrower can own up to 10 1-4 unit properties
  • Up to 20 acres allowed (on certain programs)

Call or email Derek today to get your personalized rate quote for a jumbo loan.

 

VA LOANS FOR VETERANS AND ACTIVE MILITARY – Click Here to be taken to my main VA page

VA loans, also called Veteran Administration loans, are available to active military service members, veterans, National Guard or reservists, surviving spouse of a veteran and members of the Public Health Service.  The VA loan program can make it much easier for veterans to secure a home loan by requiring little or no down payment. This home loan is available to veterans and guaranteed by the U.S. Veteran’s Administration, and it frequently offers lower interest rates than ordinarily available. The most outstanding feature of a VA loan is the ability to obtain 100% financing without having to pay private mortgage insurance every month. A funding fee is paid to the VA at closing and the fee may be included in the loan, depending on the loan amount. Although the maximum loan amount varies with property location / county, typically the maximum no money down loan amount for VA loans in San Diego, including the funding fee, is $612,950. Higher loan amounts are also available through a combination of down payment and the Veteran’s available eligibility. The amount of the Funding Fee is a function of the Veteran’s available eligibility.  The 2017 VA loan limits are the same as the above Fannie Mae High Balance loan limits.  Those can be seen by clicking this link – https://www.fhfa.gov/DataTools/Downloads/Documents/Conforming-Loan-Limits/FullCountyLoanLimitList2017_HERA-BASED_FINAL.PDF 

VA loans have a number of advantages including:

  • Buy a home with no down payment or refinance up to 100% of your home’s value
  • Fast approvals
  • Down payment and closing costs may be a gift
  • No monthly Mortgage Insurance
  • 4% seller concessions
  • Qualify with less-than-perfect credit
  • Lower closing costs
  • No appraisal required for select borrowers
  • Most VA loans are assumable

 

1% DOWN NO MORTGAGE INSURANCE LOANS (Lender-Paid Mortgage Insurance) – GREAT PROGRAM!!!

This type of mortgage loan bypasses mortgage insurance costs when your loan-to-value ratio is more than 80%. The interest rate is a little higher on this type of loan compared to an FHA or conventional loan, that is because the borrower is “buying out” the monthly private mortgage insurance from the lender. Meaning, the borrower does not have to pay it at all. Money that would have gone to mortgage insurance, now goes instead to tax-deductible interest payments.  When comparing monthly payments to an FHA 3.5% down loan, this program wins almost every time.

Wouldn’t it be nice to not have to pay for an worry about mortgage insurance which isn’t tax deductible?  If you can put 1% down, this is an excellent loan option for you in today’s market.  And the 1% can be a gift. As a general rule, you need at least a 720 credit score to qualify for this type of loan and the maximum loan size is $424,100.

Click here to find out more about the 1% down NO MI loan program.

 

FHA LOANS – CLICK HERE FOR THE MAIN FHA HOME LOANS PAGE

Formed in 1934 by Congress, the Federal Housing Administration (FHA) insures private loans issued for new and existing housing, as well as for loans approved for home repairs. It acts as a buffer to lenders by reducing their risk in issuing loans, and helps borrowers qualify for the mortgages they desire. FHA loans are available to everyone looking to purchase or refinance a home. FHA mortgages are insured by the Federal Housing Administration, a federal agency within the Department of Housing and Urban Development. FHA mortgages are government-assisted alternatives to conventional financing and are great options for those who want to put less money down or who have lower credit scores. They are popular for home purchases and for refinancing. FHA loans don’t carry the income limits that you might find with other first-time homebuyer programs. However, there are limits on how much you can borrow. While these mortgages do require expenses in the form of monthly mortgage insurance, they still enable many homeowners who don’t qualify for conventional financing to purchase or refinance a home.

Advantages of an FHA loan include:

  • Put as little as 3.5% down
  • 100% of down payment and closing costs may be gift funds
  • Loan amounts as high as $625,500 with only 3.5% down payment (County specific) – Examples: San Diego county up to $612,950, Los Angeles county up to $636,150, Riverside county up to $379,500, Orange County up to $636,150, San Bernardino county up to $379,500
  • 6% seller concessions
  • Qualify with less-than-perfect credit
  • No appraisal required in some instances (FHA Streamline refinance)
  • No pre-payment penalties

Disadvantages of a FHA loan are:

  • You must pay monthly mortgage insurance
  • You could potentially have the monthly mortgage insurance indefinitely

Additional Considerations

  • To qualify for an FHA  loan, the subject property must be “FHA approved” – and the approval process requires several important steps. This is most important when purchasing a condominium. The entire complex must be FHA approved. Be sure to ask Derek or your Realtor to check to see if the complex you are looking at is FHA approved or not.  If you want to check yourself, click here
  • FHA loans require an upfront Mortgage Insurance Premium (MIP) of 1.75%, and .85% annually (paid monthly with your mortgage) on a 30 year fixed loan with > 95.00% LTV 

Call Derek today to see if you qualify and get your personalized rate quote for an FHA loan.

 

REVERSE MORTGAGES / HOME EQUITY CONVERSION MORTGAGES – CLICK HERE TO BE TAKEN TO THE MAIN REVERSE MORTGAGE PAGE

 

INTEREST ONLY MORTGAGES

Typical mortgages require borrowers to pay some interest and principal in every monthly payment. An Interest Only mortgage enables borrowers to lower monthly payments by only paying interest on a mortgage for a specific period of time, typically 5 to 10 years. Interest only loans work very well when used properly. For example, if your income varies due to bonuses or commission-based work, you might save by only paying interest and making larger principal payments when you receive larger portions of your income. Also, if you plan on only being in the home for a short period of time, this type of loan might be your best bet as you pay down only 8% of the loans principle in the first 5 years of a traditional 30 year fixed loan. Interest only loans can be good tools to free-up cash for retirement, college accounts and even a rainy day fund.

Advantages of an Interest-Only loan include:

  • Monthly payments are lower
  • You might qualify for a higher loan amount
  • You can choose to pay the full principal and interest payment
  • You maximize your tax deduction
  • More cash is available for paying down higher cost, nondeductible consumer debt
  • At any time you can make a principal reduction and lower your monthly payment

Disadvantages of an Interest-Only loan are:

  • You are only paying interest each month
  • The rate will adjust at the end of the fixed period and it could adjust up meaning your payment will increase (payment shock)
  • You will not build equity unless you make specific principle payments and this could make it harder to refinance your mortgage down the road
    By making interest only payments during the first ten years of your loan, you can save significant amounts of cash. You can then invest that cash and use it to pay off consumer debt or simply improve your cash flow.

Call Derek today to get your personalized rate quote for an Interest Only loan.

 

PORTFOLIO LOANS – click here for a sample list of portfolio programs Derek can help you with

C2 Financial has access to basically every portfolio loan available in the market place today. Portfolio lenders, are commonly known as Savings & Loan institutions. They are called portfolio lenders, because they originate loans for their own portfolio, but don’t sell them to the secondary market. It is usually due to the fact that the loan does not comply with the underwriting guidelines set by the secondary market investors and/or Fannie Mae and Freddie Mac.

The underwriting guidelines for a portfolio product can more flexible than for a loan which is being sold to a secondary investor. This flexibility can often mean that the underwriter of the portfolio program can use a much more common sense approach when evaluating things such as past credit problems, prior bankruptcies, lack of cash reserves, etc. In some portfolio programs there is no minimum credit score requirement although the borrowers use of other credit and past credit history is a determining factor in any loan program.

If you have a loan which is difficult to fund because your scenario is outside of the standard underwriting guidelines, we can often look at portfolio loan products with you and negotiate for exceptions to the underwriting rules on your behalf.