Mortgage Programs
The following are the loan programs available through Ocean Mortgage.
Conforming Programs (conform to the guidelines as set by Fannie Mae & Freddie Mac):
New, Special Program: 97% financing up to $417,000 on Purchase. Transaction is broken into two pieces: 1st mortgage for 80% of the purchase price with a "Silent 2nd" for 17% of the purchase price. The 2nd carries NO PAYMENTS for five years. The net result is a payment roughly $1,000 per month less than using a more traditional program on a purchase price of $450,000. Call for details!
95% financing up to $417,000 on Purchase
90% financing up to $417,000 on Rate & Term (no cash out) refi
85% financing up to $417,000 on Cash Out refi. Keep in mind that any financing over 80% will require Private Mortgage Insurance (PMI) which is increasingly difficult to obtain these days.
Conforming loans come in a multitude of programs and generally offer the widest range of options including traditional fixed rates (40 year, 30 year, 20 year, 15 year, 10 year), and hybrid ARMs (3/1, 5/1, 7/1, 10/1). Interest only payments are allowable on some programs too.
Jumbo Conforming Programs, San Diego's limit is $697,500:
90% financing up to $697,500 on Purchase
85% financing up to $697,500 on Rate & Term (no cash out) refi
75% financing up to $697,500 on Cash Out.
FHA Programs (conform to the guidelines as set by FHA):
99.5% financing up to $417,000 on Purchase (this is a new program that combines a small 2nd mortgage for 3% financing on top of the standard FHA 1st mortgage at 96.5% financing and allows for the .5% down payment to be a gift)
96.5% financing up to $417,000 on Rate & Term (no cash out) refi
85% financing up to $417,000 on Cash Out refi. ALL FHA loans carry Mortgage Insurance irregardless of the loan to value.
Jumbo FHA Programs (the guidelines are the same as above for FHA, except that the maximum financing on a purchase is the standard 96.5%). The maximum loan amount for San Diego properties is $697,500.
True Jumbo Programs (jumbo financing practically disappeared in late 2008 and for much of 2009, however, it is making a comeback and we expect guidelines and pricing to be more favorable in the future):
75% financing to $1,500,000 on Purchase and Rate & Term (no cash out) refi
65% financing to $2,000,000 on Purchase and Rate & Term (no cash out) refi
Call or email for guidelines on cash out as these vary and depend on the loan size and actual cash out received.
Equity Lines of Credit/2nd Mortgages:
75% financing up to $350,000
Private Money ("Hard Money") and Commercial Loans: We do have investors for these programs so please call or email with your scenario as there are no standard guidelines we can publish. Every loan is looked at on a case-by-case basis.
Call or email Lance with questions at (858) 705-2698 or LNowak@OceanMortgage.net