As the next part of my continuing series of affordable loan options for first time buyers here in the LA & Ventura counties, I want to now present safe and affordable 100% financing home loan programs here in LA & Ventura counties. In spite of the loss of most 100% financing for mortgage loans, there are still three options that may help some of those who were hoping to get into their own home this year.
USDA Rural Guaranteed
One such program is the USDA Rural Guaranteed program, which extends 100% financing opportunities to individuals and families.
This program is used to help low-medium income residents purchase homes with no down payment requirement and no monthly mortgage insurance. This program is only available in designated USDA eligible areas. The USDA eligible areas for Ventura and Los Angeles Counties are as follows:
- Ventura County: The areas surrounding Highway 126 as well as the areas surrounding Highway 33 north of Highway 126.
Eligible Cities Include: Oak View, Mira Monte, Meiners Oak, Ojai, Fillmore, Piru and some parts of Santa Paula and Ventura
- Los Angeles County: The areas surrounding Highway 126 west of Interstate 5 as well as the areas north of Highway 118 west of Interstate 5. Other areas include the areas surrounding Highway 14 in the Antelope Valley, areas north of Interstate 210 in the San Fernando and San Gabriel valleys as well as the areas surrounding Angeles Crest Highway.
Eligible Cities Include: Val Verde, Castaic, Frazier Park, Acton, Littlerock, Lake Los Angeles and some parts of Santa Clarita, Newhall, Valencia, Canyon Country, Palmdale, Quartz Hill, Lancaster as well as parts of San Fernando & San Gabriel valleys that are north of Interstate 210.
There are income limit guidelines that applicants must qualify for to be eligible to apply. These income limits are based on 115% of the median income for that county as well as family size. In Ventura County the income limits range from 48k to 130k a year depending on the size of your household. In Los Angeles County the income limits range from 42k to 115k a year depending on the size of your household.
VA Loan Guarantee
The main purpose of the VA Guarantee loan program is to help veterans purchase primary residences with no down payment, no monthly mortgage insurance and competitive interest rates.
Aside from the veteran's certificate of eligibility and the fact that the appraiser is assigned by VA, the application process is not much different than any other type of mortgage loan. The VA loan has a funding fee that can be financed into the loan thus lowering your upfront closing costs.
CalVet Home Loans
Like the VA Loan Guarantee, the CalVet Home Loan program is available to veterans and active duty personnel for the purchase of a primary residence.
However, unlike the VA Loan Guarantee that provides a guarantee up to 25% of the loan that you obtain with a private lender, CalVet is a direct lender and CalVet will service the loans after the close of escrow.
CalVet Home Loans are funded through the sale of tax-exempt bonds. Even though the CalVet Home Loan program has been totally self-supporting and no taxpayer funds have been used to repay its bonds, there are state and federal limitations on the amounts of general obligation bonds that may be sold for the program. As a result, CalVet has the privilege of establishing their own interest rates and loan amounts, which are very competitively set.
This post is the fourth in my series of affordable loan options available to first time buyers here in LA & Ventura counties. Until then, check out my first two posts on affordable home loan options here in LA & Ventura counties.
If you're interested in purchasing your first home here in LA or Ventura counties, contact me about affordable home loan options that you may be eligible for.
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