For many Californians, there are so many barriers to purchasing a home or investing in real estate that it may seem like more trouble than it is worth. Often, potential homebuyers are dissuaded from their interest in owning California real estate due to unreasonable interest rates and restrictive requirements. Fortunately, there are a variety of mortgage loans that can help make homeownership a reality, even if you do not have a perfect credit score.
If you are buying a house in California, choosing a lender with your best interests in mind is critical. Griffin Funding offers consumer-oriented loan programs with competitive interest rates and flexible underwriting options including bank statement, FHA, and VA home loans.
Areas We Serve
Whether you’re looking to purchase a home on the coast, in the mountains, or anywhere in between, Griffin Funding provides loan services for California buyers all across the state, including:
- San Diego
- Del Mar
- Chula Vista
- Point Loma
- San Clemente
- Orange County
- Los Angeles
- San Francisco
Wherever you choose to invest, our loan officers can help you find a mortgage that suits your circumstances. Discover our favorable California mortgage programs today.
How Do Home Loans Work in California
Home loans in California work more or less the same as those in other states, however, the higher cost of real estate in the state is a factor that can impact your mortgage and how you approach investing.
Typically, the process is fairly straightforward. Once you find a home, you will need to apply for a loan through a lender of your choosing. You will then need to provide the requested information to determine if you can qualify for a home loan. Once you agree on the terms of the loan, it will be approved and finalized. At this point, you can move forward with buying a home.
Requirements to Buy a House in California
The requirements to buy a house in California are similar to anywhere else. For the most part, the requirements depend on the type of loan you’re applying for. Additionally, each lender has their own list of qualifications. Typically, requirements revolve around several key factors, such as:
- A minimum credit score (600 or higher)
- Income verification
- Down payment (ranging anywhere from 3% to 20%)
- Debt-to-income (DTI) ratio (43% or lower)
- Loan amount
Traditional loans usually have strict requirements. However, Griffin Funding focuses on offering more flexible loan options that cater to investors, self-employed individuals, and first-time buyers.
Rates and Fees
An important aspect of California home loans is the associated rates and fees. Fees can range from appraisal and processing costs to the origination fee for your mortgage. It’s important to keep in mind that in addition to the rates and fees associated with your mortgage, there are also other fees that you may be responsible for when buying a home in California, such as real estate commission, title fees, and more.
The interest rate of a loan is determined by several factors, including your financial position, loan type, where the home is located, and the price of the home. Usually, those with lower credit rates and down payments are saddled with higher interest rates.
If your current rate is too high, you should consider refinancing your mortgage. Refinancing could save you substantially by lowering your payments and reducing how much you pay in interest over the life of the loan. In the long run, it could even save you thousands of dollars. After reviewing your current mortgage, one of our loan officers can help you determine whether refinancing is the best financial decision for you.
Our California Mortgage Programs
DSCR Loans in California: DSCR loans allow real estate investors and mortgage brokers to qualify for financing based on their debt service coverage ratio (DSCR) rather than through traditional means. By calculating the DSCR, lenders can measure a potential borrower’s operating income in relation to their mortgage debt, and thus determine whether they will be able to repay a loan.
Asset-Based Loans in California: When you take out an asset-based loan, you’re borrowing against the value of your assets. The more valuable your assets are, the more financing you can receive. This enables borrowers to tap into the equity of their assets and access financing.
Bank Statement Loans in California: These loans allow you to qualify for a mortgage with your bank statements instead of the income verification methods required for traditional home loans. This option is typically advantageous for self-employed individuals whose W2’s do not accurately reflect their income.
FHA Loans for First-Time Homebuyers: An FHA loan is recommended for buyers who do not have funds available for a large down payment. Since these loans are insured by the FHA (Federal Housing Administration), you can buy a house with as little as 3.5% down.
VA Home Loans: Qualifying active-duty service members, veterans, and surviving spouses can take advantage of the home loan benefits afforded by the Department of Veteran Affairs. Because these loans are insured by the VA, you can secure much lower rates and even forgo a down payment.
USDA Home Loans: Depending on where you want to buy a home in California, you may be able to apply for a USDA mortgage. These loans are reserved for homes in qualifying rural areas.
Speak with one of our loan officers today to determine which of our California home loans best suits your needs.
Buying a House in California
While the general process of buying a home is similar in whichever state you choose to buy, there are certain factors that differ for homebuyers in California.
What Is The Current Home Loan Interest Rate In California?
There is not one flat interest rate for mortgages in California. Instead, the interest rate is dependent upon your credit, income, down payment, and lender’s loan programs.
Griffin Funding strives to provide competitive interest rates to our borrowers in diverse financial situations. Learn more about our fixed-rate and adjustable-rate mortgages by discussing your circumstances with one of our experts.
How Long Can You Finance a House In California?
While you can find a 50-year mortgage, 30-year and 15-year mortgages are much more common for California buyers. This is because 50-year mortgages typically run into the later years of retirement when income is usually at its lowest which is not ideal when paying off loans.
Apply for a California Home Loan
Buying a home in California is easier than ever with the assistance of a Griffin Funding loan officer who can help you qualify for a mortgage tailored to your needs. Our application process is stress-free and we can often complete the California home loan process within 30 days so that you do not miss out on the home of your dreams. Contact our San Diego Corporate office or our branch on Coronado Island.
Begin the application online or request a free quote today!