Almaden Valley, CA Home Loans
Almaden Valley (Almaden) is an area in Southeast San Jose in Santa Clara county. When looking to buy a home in Almaden, buyers have many loan options available to them. Almaden Valley is not eligible for USDA financing since it lies in an urban/suburban area, however the area is eligible for all other types of residential financing, including Conventional, FHA, VA, Jumbo, and Portfolio loan products.
In the calendar year 2015, 414 homes sold in the Almaden area of San Jose. Prices ranged from $482,000 up to just north of $4 million. Prices vary greatly by property type & size, but the area supplies homes for a wide range of budgets. For detailed sales data, click the house to the right. 2015 was a great year for sellers in Almaden, as the market heavily favored them with competitive offerings and short inventory.
Almaden Valley FHA Loans
Santa Clara county boasts the highest available loan limits in the contigious US through HUD's FHA loan program, so those looking to buy a home in Almaden using FHA financing can borrow up to $625,500 for the purchase of a single family home (multi-units have even higher loan limits). The benefits of an FHA loan are that buyers in the Almaden area only need a 3.5% down payment, and with the ability to get up to 6% sellers assistance, large asset statements aren't necessarily required to purchase a home here.
The FHA loan program is somewhat lenient on credit history and offers extremely low rates to those with less than perfect credit. FHA loans are also assumable, which is a tremendous benefit to home owners should they decide to sell in a higher interest rate environment.
The one downside to the FHA program is the PMI. PMI is expensive on FHA loans, and for buyers with less than 10% down, the PMI is attached to the mortgage loan for it's entirety (guidelines for 30 year fixed and ARM FHA loans ).
Almaden Conventional Loans
Conventional Loans are another great option for buyers in Almaden Valley, CA. Since Santa Clara county is considered by Fannie mae to be a high cost area, they have a maximum loan limit higher than many other areas of the country. Conventional loans can be obtained in Almaden up to $625,500.
Conventional loans require a minimum 3% down payment, and with less than 20% down, buyers will be subject to PMI. For those with good credit, LPMI is an option to keep monthly payments low. Conventional loans offer very low rates, and are tiered based on credit and down payment amount (for example, a buyer with perfect credit and a large down payment would see a better rate than a buyer with average credit and a small down payment). Conventional loans also allow for sellers assistance. With less than 10% down, a seller can contribute 3% of a purchase price toward a buyers closing costs. With more than 10% down, that limit is raised to 6%.
Note for Cash Buyers: Those looking to buy a home with cash can also take advantage of a conventional loan's 'delayed financing' feature.
Other Mortgage programs for Almaden Valley buyers
VA loans are available for eligible veterans looking to buy in Almaden and other areas of Santa Clara county. The county loan limit for VA loans is $625,500. Since VA loans finance up to 100% of a home purchase and also allow for sellers assistance an eligible veteran can buy a home in Almaden with little or no money out of pocket.
Jumbo loans are loans that exceed the caps established by Fannie Mae, Freddie Mac, FHA, USDA, and VA programs. In Almaden Valley, jumbo loans are available up to $10 million and program LTVs and guidelines vary by our lenders. One of our most popular jumbo products is a 10% down jumbo loan up to $750,000 with NO PMI. Jumbo loans will sometimes have a slightly higher rate than other financing avenues, but they allow buyers to finance a much larger sum of money.
Portfolio 'Niche' Products are products tailored to a specific type of borrower. Many niche products favor high net worth buyers, investors, or foreign buyers. Some of our most commonly used niches are stated income products, asset depletion loans, foreign national loans, and buyers with more than 10 financed properties.
If you have questions on a loan product or program, you can get an immediate answer by asking here.
Almaden Valley, CA offers a great opportunity for those living & working in Silicon Valley to enjoy a recreational area with great homes and close proximity to downtown San Jose. If you're considering buying or selling homes in Almeden Valley or the surrounding areas, I'd highly recommend speaking with David Verbera of Realty World. David knows his marketplace, has excellent negotiating skills, and provides a much higher level of service than is common in today's Real Estate industry.
If you have questions on a mortgage in Almaden, CA or the surrounding areas, give me a call at 484.680.4852 or ask an expert here. I specialize in residential purchases AND refinances for everyone from the first time home buyer to the seasoned investor.