Carlsbad, CA Home Loans
Carlsbad, CA is a coastal community in North San Diego County. When buying a home in Carlsbad, buyers have many options when it comes to mortgage products. Conventional, FHA, Jumbo, VA, and Portfolio niche loans are all available in Carlsbad and the surrounding areas. One loan program that cannot be used in Carlsbad is the USDA program. Due to it's vicinity to nearby San Diego, the rural loan program is unavailable in Carlsbad (but is available further inland).
In the calendar year 2013 there were 1202 Single family homes sold in Carlsbad. The average sales price for the area was $807,329 with the lowest priced single family home selling for $325,000 and the highest sale price being $6,350,000. On average, homes were on the market for 35 days. These figures are independent of town homes & condos, which are also available for purchase in Carlsbad.
Carlsbad FHA Loans
FHA loans in Carlsbad require a 3.5% down payment, which can come in the form of a gift. Also allowing up to 6% sellers assistance, the FHA loan program makes it possible to buy a Carlsbad home with little money out of pocket. Since Carlsbad is in San Diego county, FHA allows base loan amounts up to $546,250 for single family homes.
FHA loans offer many benefits to Carlsbad home buyers. Rates are low, and are more forgiving of lower credit scores or previous credit issues than conventional loans typically are. They are also assumable, which is a nice feature for home owners if rates rise in the future.
The one down side of an FHA loan is the PMI associated with these loans. With less than a 10% down payment, the PMI is expensive and permanent. Many buyers who use FHA loans will later refinance to remove the PMI for this reason.
Carlsbad Conventional Loans
Conventional loans are another good lending option in Carlsbad, CA. Conventional loans require a 5% down payment, offer low rates, and typically have lower cost PMI than FHA loans. For those with 20% or more down payment, there is no mortgage insurance on a conventional loan. The maximum loan amount for conventional loans in Carlsbad is $546,250.
Conventional loans in Carlsbad also allow for sellers assistance to help a buyer with closing costs. With less than 10% down, a seller can contribute up to 3% of the purchase price of a home toward the buyers cost. With more than 10% down, contributions are capped at 6%.
Conventional loans are more sensitive to credit scores, so those with lower credit scores may see higher rates than those with great credit. PMI on conventional loans is also tiered on a sliding scale based on FICO score & down payment percentage.
Other Loan Programs
VA loans are available for Carlsbad home buyers and allow for up to 100% financing with a maximum loan amount of $546,250. VA loans also allow for sellers assist, so it's possible for qualified veterans to obtain the dream of home ownership with little to no money out of pocket.
Jumbo loans are loans exceeding the maximum loan amounts that other programs are capped at. In Carlsbad, CA, jumbo loans are available up to $10,000,000 with a substantial down payment. For certain jumbo programs, up to 90% of a home purchase can be financed with NO PMI. Typically, jumbo loans have slightly higher rates than conventional loans, but allow home buyers to finance a much larger amount of money.
Portfolio "Niche" products are those products that fit unique borrowers. Asset depletion programs, loans for foreign nationals, or for unique properties all fall into "portfolio lending". These niche products ensure that buyers with all types of backgrounds & financial situations can obtain a loan.
If you have questions on a loan product or program, you can get an immediate answer here.
Carlsbad, CA offers a tremendous opportunity for home owners to enjoy the lifestyle of a fun coastal community with close proximity to San Diego. If you're considering buying a home in Carlsbad or the surrounding areas, or want more area specific information, I'd highly recommend speaking with Jeff Dowler of Solutions Real Estate. Jeff's market knowledge is unmatched, and his experience in real estate transactions can help make the process of buying or selling a Carlsbad home seamless.
If you have any questions about a Carlsbad, CA mortgage, don't hesitate to give me a call at 484.680.4852 or ask an expert here. I specialize in residential home purchases AND refinances.