Cupertino, CA Home Loans
Cupertino, CA is a small, affluent city just west of San Jose. When buying a home in Cupertino, buyers have many options for mortgage financing, so it's important to work with a professional in making the right choice on a loan product. Conventional loans, Jumbo loans, FHA, VA, portfolio, investor, and rehab loans are all available options when buying a home in Cupertino. In fact, the only program that is not readily available in the area is USDA financing, due to the fact that Cupertino is in close proximity to major cities.
Prices for homes vary greatly in the high end and very competitive Cupertino market. In 2015, the lowest priced condo sold for $425,000 for a 1 bed, 1 bath, and ranged all the way up to $4.1 million for a 9 bed, 6 bath new construction home. The market offers something for all budgets, with prices depending largely on size and property type. In this highly competitive market, it's important to have great professional guidance in buying or selling.
For more detailed 2015 sales data for Cupertino, click the house!
Cupertino, CA FHA Loans
FHA loans in Cupertino 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 Cupertino home with little money out of pocket. Since Cupertino is in Santa Clara county (an area considered by HUD to be 'high cost'), FHA allows base loan amounts up to $625,500 for single family homes.
FHA loans offer many benefits to Cupertino home buyers. Rates are low, and are more forgiving of lower credit scores or previous credit issues than conventional loans. 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.
Cupertino, CA Conventional Loans
Conventional loans are another good lending option in Cupertino, CA. Conventional loans require a 3% 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 Cupertino is $625,500.
Conventional loans in Cupertino 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 Cupertino home buyers and allow for up to 100% financing with a maximum loan amount of $625,500. 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 Cupertino, 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.
Cupertino, CA offers a tremendous opportunity for home owners to enjoy a very high quality of life in the heart of Silicon Valley. If you're considering buying a home in Cupertino or the surrounding areas, or want more area specific information, I'd highly recommend speaking with David Verbera of Realty World. David knows his market, is an expert negotiator, and most important of all, puts his clients wants & needs first and foremost in every sale.
If you have any questions about a Cupertino, 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.