5 Different Types of Loans You Can Take Advantage of in CA

Getting a home loan can seem like a daunting process. For a first-time home buyer in CA, all of the options can become confusing. However, once you know the differences and understand the qualification requirements, getting a home loan can be quick and easy. Learn about the different types of loans in our latest blog post!

5 Different Types of Loans You Can Use:

FHA Loans:

FHA loans are a popular choice among recent college grads, and people just starting out in the real estate world. They are appealing because they only require 3.5% down as opposed to a conventional loan which requires 20%. You must meet certain requirements such as having a credit score over 580. If your score is lower, you can still be eligible for an FHA loan, you will just need to make a higher down payment. You will also need to have 2 lines of credit, open and in good standing.

As far as the property, it needs to be used as your primary residence. It will be subject to an inspection by your lender.

Fixed Rate Mortgage:

Fixed-Rate Mortgages are the most popular type of home loan available. Typically a 20% down payment is required. A fixed-rate mortgage means your payment will be the same every month. This makes things easy, and lets you plan accordingly. However, if rates drop, you will be stuck at your old rate. You can always refinance, but that will cost you as well.

A fixed rate mortgage requires that you have 3 open lines of credit, all in good standing. There are also income, and credit requirements that will need to be met.

Adjustable Rate Mortgage:

An adjustable rate mortgage is a bit riskier as your interest rate will change when the market fluctuates. These loans are great for people with some buying and selling experience. First-time buyers might want to steer clear as these loans can be a lot more involved.

VA Loan:

VA Loans are given to Veterans and active duty members of the US Armed Forces. Members of the National Guard may also qualify once they have served for 6 years. In addition, widows of Veterans may also qualify if their partner lost their life while serving.

VA Loans offer a ton of benefits including:

  • Zero down payment
  • Appraisal and closing fees are regulated
  • Lenders do not charge private mortgage insurance or PMI
  • You will need to pay a 1-time funding fee of 2% which you can finance it into the loan. Eligible borrowers can borrow up to 103.15% of the sales price or reasonable value of the home.

USDA Loans:

THE USDA offers mortgages in rural areas of the United States. Before you dismiss this, take note that over 95% of US is eligible. These loans require zero down and have low insurance rates. You must have great credit to apply and there are strict income limits. A 4 member household cannot exceed $75,650 per yer. (And no single person can have income exceeding $49,900 per year.)

When you begin shopping for your Orange County home, you should be aware of all of the resources available to you. There are grants, down payment assistance and government sponsored resources that can help you become a homeowner right now! The process does not need to be as overwhelming as people make it out to be! Once you know what is out there, you can take steps to reach your goals!


If you want to learn more about the loan options available to you, give us a call or send us an email! We are happy to help point you in the right direction! 949-625-4533


Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

Access Local CALIFORNIA Investment Property Deals...

Handyman Properties - Fixer Uppers - High Equity. *These are not on the MLS - Many are below $300k. Available properties on the next page.
  • This field is for validation purposes and should be left unchanged.