Signal Hill (Long Beach, CA) Home Loans
Signal Hill, an incorporated enclave within the greater Long Beach/Los Angeles marketplace, is a town with a view. Home to many residential and commercial buildings, Signal Hill has a rich history with a large role in the California oil industry. It's also home to some of the best sunsets in the Los Angeles area - perks of living on a hill so nearby sea level. When looking to purchase a Signal Hill home or condo, buyers have many mortgage options available. Signal Hill is outside of the allowable USDA areas (USDA is unavailable in urban areas) however the area is eligible for all other types of residential financing including Conventional, FHA, VA, Jumbo, and Portfolio/Niche loan products.
In the calendar year 2016, there were 50 single family homes sold in Signal Hill with an average sale price of $675,000. On average, single family homes were on the market for 70 days in 2016.
There are also many condominiums & townhouses available in Signal Hill. In 2016, there were 130 sales of this property type with an average price of $401,750. Average time on the market for condos/townhomes was a quick 55 days.
Signal Hill FHA Loans
Los Angeles 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 Signal Hill with an FHA mortgage can borrow up to $636,150 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 and around Signal Hill 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 flexible on credit history and offers 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 now a permanent fixture for FHA loans, present on a 30 year mortgage loan until the loan has been paid off in full.
Signal Hill Conventional Loans
Conventional Loans are another great option for buyers in Signal Hill & the surrounding Long Beach marketplace. Since Los Angeles 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 Signal Hill up to $636,150 with just 5% down (3% down for first time home buyers).
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 Signal Hill home buyers
VA loans are available for eligible veterans looking to buy in Signal Hill and other areas of Los Angeles county. The county loan limit for VA loans is $636,150. 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 Signal Hill 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 Signal Hill, 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 offer luxury buyers the opportunity to borrower large amounts of money at rates similar to conventional programs.
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 bank statement for 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.
Signal Hill offers a great opportunity for those living & working in the greater Los Angeles area to enjoy a great community with close proximity to downtown LA, the ocean, downtown Long Beach, and the nearby San Gabriel mountains. If you're interested in buying or selling homes in Signal Hill or the surrounding areas, I'd strongly suggest speaking to Jon Kolsky of Kolsky Realty. Jon is a local market expert, 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 Signal Hill, CA or the surrounding areas, give me a call at 949.247.7530 or ask an expert here. I specialize in residential purchases AND refinances for everyone from the first time home buyer to the seasoned investor.