Mortgage Loan Programs
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Mortgage Programs

Conforming loans Fixed Rate
Adjustable Rate Mortgage
High Balance Loans
Hybrid Mortgages (with interest only option)
No Income Verification Mortgage
No Downpayment Financing
Manufactured Housing/Mobile homes

Updated 1/19/2012

The maximum loan in Orange County for conforming loans is $417,000. It is possible to do a higher loan amount under the "high balance" loan program available in certain counties throughout the state. The maximum loan amounts by county are set by Housing and Urban Development (HUD) and information can be found by clicking here. Terms may be for 30, 20, or 15 or 10 years. The 15 and 10 year fixed rates offer better pricing with all lenders for both conforming and jumbo. All these A-paper loans normally require a minimum of a 620 mid score of the primary borrower as well as minimum tradeline requirements to pass through automated underwriting. We have seen a few get through with compensating factors in a strong application.


On the other hand, adjustable rate loans can be advantageous for short periods, and we recommend them if you are planning to stay in your property for a few short years. Often, because of the initial low interest rate, it is easier for some borrowers to qualify for financing when buying a home. For others, this is the only type of loan they can qualify for due to their debt to income ratios.

Although the initial rates can be quite low, because of the periodic increases to the interest rate, the rate can exceed the rate of a 30 year fixed rate in a few short years, after which time, it is likely that you would want to refinance. In the case where you have some derogatory credit items and don't qualify for that 30 year fixed rate, the ARM is usually what most borrowers will opt for, to help them get back on track. After enough on time payments have been made, the loan can be refinanced into the 30 year fixed at a later date.


High Balance loans are loans which exceed the conforming loan limit which in Orange County and LA County is $729,750. A loan exceeding this amount and less than the maximum allowable loan limit for the county ($729,750) can still receive an interest rate that is just a shade off the loan amounts under $417,000 and not have to take a jumbo rate. Most lenders have a fixed 30 and 15 year high balance products, along with 5/1 and 7/1 ARMS as well. Loans above the max loan amount for the county fall into jumbo territory and receive different pricing.


Hybrid adjustable rate mortgages include the 5/1, 7/1, or 10/1 ARMs, in which the interest rate will stay fixed for 3,5,7 or 10 years, after which time the rate will become variable and adjust periodically. The periodic change up or down is tied to an index which is usually the 1 year Treasury-Bill, or LIBOR. You get a margin which is fixed for the life of your loan. This is added to the index to determine your current rate. (There are annual and life caps). The main advantage with these loans is the better interest rate that you get over the straight 30 year fixed conforming or jumbo rate. Interest only is an option with most of these products.

These loans are more accomodating for those who aren't sure how long they plan to keep their property, but do plan on selling at some time in the future. Some homeowners feel that it doesn't really matter if they're not chipping away at any principal while their home is appreciating in value since they won't be there that much longer. If your goal is lowering your monthly payment, then the interest only option will certainly do this for you.

No-income qualifier loans or Stated income loans are virtually non existant in the current mortgage marketplace. I have one niche lender who can do this kind of loan on a 5/1 ARM product. A minimum 700 credit score is required. Please inquire for more details on this product.

Index Zero downpayment financing is no longer available unless you are a veteran. Qualified vets can purchase a home at 100% of the purchase price. FHA financing allows you to purchase with a small 1/2% downpayment. This program came out early in 2013.


We also offer loans for manufactured homes. This may include modular housing in which the home is built in a factory to your specifications and then hauled out onto the lot which you have chosen. The home is permanently fixed to the foundation, and normally the passer by cannot detect the difference from this type of housing unit from a site built home.


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