Saratoga, CA Home Loans
Saratoga, CA is a city in Santa Clara county located just west of San Jose on the western edge of the Silicon Valley. Ranked highly amongst the most well-educated and highest-earning towns in the country, residents of Saratoga enjoy many recreational activities, the benefits of some of the top ranked schools in the state, and the lifestyle of small town suburban living with the convenience of easy access to the bay area's major cities.
When buying a home in Saratoga, CA, buyers have many options for mortgage financing. Since Saratoga is not a rural area, it is not eligible for USDA financing, however Conventional, FHA, VA, Jumbo, and Portfolio loans are all available to Saratoga home buyers & current residents.
In the calendar year 2015 there were 367 residential sales in Saratoga, CA, ranging in price from $665,000 for a condo all the way up to $6.7 million for the highest priced single family home sale. Price ranges vary greatly by property type, and you can see detailed sales data by clicking on the house above.
Saratoga, CA FHA loans
FHA loan limits in Santa Clara county are set at $625,500 for single family homes, the highest loan limit available for FHA loans in the contiguous United States. FHA loans require a 3.5% down payment, which can come from a borrowers assets or gift funds. In addition, FHA allows a seller to contribute up to 6% of a purchase price toward a buyers closing costs, so a buyer using FHA financing in Saratoga, CA does not need a huge down payment to achieve home ownership.
The main benefits of FHA loans in Saratoga, CA are in the interest rates and the flexibility when it comes to credit history. FHA interest rates are very low, and are far more forgiving when it comes to credit history than other financing options. FHA loans are also assumable, which will prove to be a benefit to those with FHA loans if and when interest rates rise in the future.
The one major downside to FHA loans in Saratoga, CA comes in the form of high PMI payments. With less than 10% down, PMI on an FHA loan is expensive AND permanent. For this reason, many people who purchase a home with an FHA loan will later refinance into a conventional loan to get rid of the monthly PMI.
Saratoga, CA Conventional Loans
Conventional loans are another great option for buyers and residents of Saratoga, CA. Loan limits for Santa Clara county conventional loans are set at $625,500 and these loans require a minimum 3% down payment. Conventional loans offer low rates and typically have lower PMI costs than FHA loans. For buyers with 20% or more down, there is no PMI at all. Buyers with good credit can also consider LPMI when deciding on the best down payment option.
Saratoga, CA conventional loans also allow for sellers assistance. For those with less than 10% down, a seller can contribute up to 3% of the sales price toward a buyers closing costs. With 10% or more down, that number increases to a 6% allowance.
Conventional loans are more sensitive to credit history than FHA loans, so those with lower credit scores will often see a higher interest rate than those with perfect credit. The best conventional interest rates come from a large down payment and a FICO score of 740 or higher.
Note for Cash Buyers: Those looking to buy a home with cash can also take advantage of the 'delayed financing' feature available under conventional guidelines.
Saratoga, CA VA Loans
VA loans are available to eligible veterans in Saratoga, CA. In Santa Clara county, the loan limit for VA loans is $625,500, and these loans do not require a down payment. Since VA loans also allow for sellers assistance an eligible veteran can buy a home in Saratoga, CA with little to no money out of pocket.
Saratoga, CA Jumbo Loans
Jumbo loans are those loans that exceed maximum loan limits established by Fannie Mae, Freddie Mac, HUD or VA. In Saratoga and the surrounding areas, jumbo loans are available up to $10 million. Loan LTV's and guidelines vary from lender to lender, but many guidelines are flexible and rely on common sense underwriting. One of our most popular jumbo loan programs is a 10% down loan up to $750,000 with NO PMI. Jumbo financing sometimes comes with slightly higher interest rates, but allows buyers to finance a much larger sum of money.
Saratoga, CA Portfolio/Niche Loan Programs
Portfolio 'Niche' products are tailored to meet a specific type of borrower's financing needs. Many niche products favor high net worth buyers, investors, and foreign borrowers. Some of our most commonly used portfolio products are stated income, asset depletion loans, bank statement programs, foreign national loans, and loans for buyers with more than 10 financed properties.
If you have questions on a particular loan product, you can get an immediate answer by clicking here.
Saratoga, CA offers a tremendous opportunity for buyers in and around the Silicon Valley area. With great homes, highly ranked schools, and easy access to city centers and recreational fun, quality of life doesn't get much higher. If you're considering buying or selling a home in Saratoga, CA, I would highly recommend speaking with David Verbera of Realty World. David knows his marketplace, has excellent negotiating skills, and provides an uncommonly high level of service to his clients, always putting their interests first.
If you have questions about Saratoga, CA Home Loans, or would like more info on buying a home in Santa Clara county, 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.