Loan Options

TYPES OF LOANS

Conventional

Close to three-fourths of all mortgages are conventional loans, making them the most popular of all mortgage loans. These loans are not insured by the government, so borrowers don’t have to go through as many hurdles to secure financing. In the current lending environment, Conventional loans typically have fixed interest rates, and borrowers make the same payment month after month. While credit standards are more stringent for Conventional loans, it is possible to secure financing if you’ve had some credit issues. In general, the better your credit score, the lower your interest rate will be with a conventional loan.

FHA

While the Federal Housing Administration does not actually provide the money, it insures FHA mortgage loans. The FHA’s lending standards are much more flexible than Conventional products, allowing people with lower credit scores, smaller down payments, or a higher debt-to- income ratios to secure financing. Borrowers typically need a credit score of at least 580 and a down payment of 3.5 percent to qualify. Borrowers must also pay an Upfront Mortgage Insurance Premium of 1.75 percent which typically gets financed into the loan, along with a monthly insurance premium. The cost of the monthly insurance premium varies based on loan terms.

VA

The U.S. Department of Veterans Affairs does not provide money to borrowers. Instead, it guarantees VA loans, ensuring that the lender still gets paid if the borrower defaults. VA mortgage loans are available for veterans including active duty service members, National Guard Members, reservists, and retired vets. These loans are popular because they do not require a down payment and offer lower interest rates, even for those with credit issues. A financed funding fee is required when taking out one of these loans but may be waived for veterans receiving VA disability.

Jumbo

Jumbo loans allow people to borrow the money they need to buy higher-priced homes. GHI offers portfolio Jumbo products up to $3 million. Borrowers must typically have a higher credit score, lower debt-to-income ratios, and strong financial reserves to qualify for these products.

Down Payment Assistance

GHI has partnered with several investors to offer down payment assistance. Below is a quick summary of our most popular products.
CalHFA offer a 3.5% second for down payment assistance and up to 4% in closing cost assistance, allowing many borrowers to bring in few or even no funds to close. Borrowers must be first time homebuyers and within certain published income and sales price limits. The borrowers do not need to make monthly payments on the loans for down payment or closing cost assistance, helping them qualify for more home.
GSFA Platinum was created to help low-to-moderate income homebuyers in California to purchase a home by providing down payment and/or closing cost assistance. These loans are zero percent interest and forgivable after three years, or immediately for borrowers in occupations such a public safety and education. This program also accommodates non-first-time homebuyers.
Chenoa Fund provides a 3.5% down payment behind a 96.5% FHA first for 100% financing. There are no first-time home buyer restrictions or income limits, however the loan may be forgivable for borrowers who are within certain income limits.
City 2nds Down Payment Assistance-GHI has a relationship with several municipalities including the cities of San Diego, National City and Chula Vista and can offer eligible first-time homebuyers down payment assistance in the form of subordinate financing, based on availability of funds.

Thirty-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

Fifteen-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)

These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

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