Mortgage Loan Programs

We are a California mortgage broker offering a multitude of construction and home loans in California. Take a look below at each type of mortgage loan program and what the benefits are of each program. If you have any questions about these programs or if you would like to apply, just click the button below to contact us!

We work hard so that you can get approved for a mortgage loan and relax in your new home.

Foreign National Loan

Foreign National Loans are specialized mortgage loans for non-U.S. citizens who wish to invest in the American real estate market. These loans are often used by foreign investors, temporary residents, or those who frequently travel to the U.S. They are typically issued by private lenders and banks that have foreign national loan programs. The application process for these loans can be more complex than for a traditional mortgage, as foreign income and credit must be verified, and additional collateral may be required. Foreign national loans offer a way for non-U.S. residents to participate in the American real estate market, even though they do not have the same access to credit as U.S. citizens. Unlike other home loans in California, these loans can be used for both residential and commercial properties, and repayment terms can be flexible. However, interest rates and down payment requirements are often higher than for traditional mortgages, reflecting the additional risk associated with lending to foreign nationals.

Benefits of Foreign National Loans:

Allows non-U.S. residents to invest in U.S. real estate.
Can be used for both residential and commercial properties.
Access to a variety of loan programs.
Some lenders offer flexible repayment terms.
Allows for diversification of investment portfolio.
Might not require a U.S. credit history.
No limit on the number of properties financed.
Loans can be obtained despite living abroad.
Some lenders may offer interest-only payment options.
Potential for property appreciation and rental income.
May help establish a financial presence in the U.S.
Asset-based loans may be available for those with significant wealth.
Some loans may not have prepayment penalties.
Certain programs may allow for the financing of luxury properties.
Access to U.S. real estate could provide a hedge against currency fluctuation in the home country.

Reverse Mortgage Loan

A reverse mortgage loan is a financial product that allows homeowners aged 62 and older to convert a portion of their home equity into cash. Unlike a traditional mortgage, where the homeowner makes payments to the lender, in a reverse mortgage, the lender makes payments to the homeowner. The homeowner can choose to receive these payments in a lump sum, regular monthly payments, or as a line of credit. The loan is not required to be paid back until the homeowner sells the home, moves out, or passes away. At that point, the home is usually sold, and the proceeds from the sale are used to pay off the loan. Any remaining equity belongs to the homeowner or their heirs. However, if the home sells for less than the loan amount, the homeowner or their heirs are not responsible for the difference, as most reverse mortgages are federally insured.

Benefits of Reverse Mortgage Loans:

Provides homeowners with a steady income stream.
The borrower retains ownership of the home, (Primary).
Payments received are typically tax-free.
Loan repayment is not required until the homeowner(s) sells, moves, or passes away.
Can help cover healthcare or long-term care costs.
Can be used to supplement retirement income.
Funds can be used for any purpose.
No monthly mortgage payments.
The loan can never exceed the home’s market value.
Protects against falling housing prices, due to the non-recourse nature of the loan.
Allows seniors to age in place.
Provides financial flexibility and enhances cash flow.
Increases purchasing power if used to acquire a new home.
Federal insurance provides peace of mind.
Can be a financial planning tool to extend the life of other retirement savings.

Bank Statement Loans

Bank statement loans are a type of home loan where the lender uses bank statements to verify a borrower’s income instead of traditional income documentation like W-2s and tax returns. This type of loan is designed for self-employed borrowers, freelancers, and independent contractors who have a solid income but have difficulty proving it due to the nature of their work. With a bank statement loan, lenders typically look at deposits made over the past 12 to 24 months to determine the borrower’s income. They may also consider the borrower’s credit history, the value of the property, and the amount of the loan. The interest rates for these loans are often higher than for traditional loans, reflecting the greater risk to the lender. If you are struggling to get a California mortgage because of difficulty proving your income, this type of California home loan might be the answer.

Benefits of Bank Statement Loans:

No need for traditional income documentation.
Good for self-employed borrowers and freelancers.
Allows borrowers to use their actual cash flow to qualify.
Borrowers can leverage their business expenses.
Availability of both fixed-rate and adjustable-rate loans.
Opportunity for larger loan amounts.
May offer more flexible qualification criteria.
Can be used for primary, second homes, and investment properties.
Some loans may not have prepayment penalties.
Variety of term lengths available.
Can be used for both purchases and refinances.
May offer interest-only payment options.
Provides a solution for those with non-traditional income streams.
Allows borrowers to take advantage of real estate investment opportunities.
Encourages entrepreneurial endeavors.

100% Financing Loan

100% financing loans are a type of home loan where the borrower finances the entire purchase price of the property, without a down payment. These loans are often used by first-time homebuyers or those who don’t have substantial savings for a down payment. The most common types of 100% financing loans are USDA loans and VA loans, both of which are government-backed programs. While 100% financing can make homeownership more accessible, it does come with higher monthly payments and possibly higher interest rates compared to loans with a down payment. Additionally, borrowers may be required to pay for private mortgage insurance (PMI) until they’ve built up enough equity in their homes. If you are struggling to find home loans in California, this may be a good option for you.

Benefits of 100% Financing Loans:

No down payment is required.
Makes homeownership accessible to those with limited savings.
Good for first-time homebuyers, but not required.
Can be combined with certain government loan programs.
Allows borrowers to conserve cash.
Offers the chance to build equity over time.
Borrowers can take advantage of current low-interest rates.
Some loans come with reduced mortgage insurance premiums.
Enables a faster path to homeownership.
Some programs offer education to assist first-time buyers.
Property appreciation can contribute to wealth building.
May offer closing cost assistance.
No penalty for early payment on many loan types.
Allows for financial planning and budgeting with a predictable monthly payment.
The potential for tax benefits related to homeownership.

Private Money Loan

Private money loans, also known as hard money loans, are short-term loans issued by private lenders, often backed by real estate. These loans are typically used by real estate investors for quick purchases, renovations, or bridge financing. Because the lender is a private entity and not a traditional bank, the approval process can be much faster and more flexible than with conventional loans. Private money loans are usually interest-only loans with a higher interest rate than traditional loans. The loan amount is typically based on the after-repair value (ARV) of the property, rather than the borrower’s creditworthiness. This makes them a popular choice for real estate flippers and investors who plan to quickly resell or refinance the property after making improvements.

Benefits of Private Money Loans:

Speedy approval and funding process.
Flexibility in terms and conditions.
Not primarily based on the borrower’s credit score.
Allows for funding of renovation costs.
Good for short-term investments.
Can be used for a variety of property types.
Ideal for real estate flippers.
Allows for borrowing against the property’s potential value.
Can be obtained even with recent foreclosures or bankruptcies.
Access to capital that may not be available through traditional lenders.
Can be used as bridge financing.
May fund projects that banks deem too risky.
Interest may be tax-deductible.
Can be a stepping stone to future traditional financing.
Can foster long-term relationships with individual investors for future opportunities.

DSCR Loan

Debt Service Coverage Ratio (DSCR) loans are a type of commercial lending in which the borrower’s ability to repay a loan is determined by the income generated by the property, rather than the borrower’s personal income. The DSCR is calculated by dividing the property’s annual net operating income (NOI) by the annual debt service (mortgage payments). A DSCR of 1 means the property’s income covers the mortgage payments exactly, while a DSCR over 1 indicates the property is generating more income than needed to cover the mortgage.

DSCR loans are particularly useful for businesses and investors who may not have high personal income but own profitable rental properties. These loans allow them to leverage the income of the property itself to secure financing. The interest rates, terms, and down payment requirements for DSCR loans vary widely depending on the lender, property type, and the DSCR itself.

Benefits of DSCR Loans:

Allows borrowers with low personal income but profitable properties to secure financing.
Can be used for a variety of property types.
Assessment is based on the property’s income, not the borrower’s.
Potential for higher loan amounts.
Can be used for both acquisitions and refinancing.
Enables leveraging of current assets.
Diversification of investment portfolio.
Potential for better interest rates for properties with high DSCR.
Access to a variety of loan programs.
Allows borrowers to invest in more properties.
Some lenders may offer interest-only payment options.
Potential for property appreciation and rental income.
Asset-based loans may be available.
Some loans may not have prepayment penalties.
Provides an opportunity to expand business or real estate portfolio.

Condo Hotel Loan

A Condo-Hotel Loan, also known as a Condotel Loan, is a type of financing for condominium units located within a hotel. The condo owner can choose to live in the unit full-time, use it as a vacation home, or rent it out, often through the hotel’s rental program. Condotel loans are considered non-warrantable condos by most lenders because the units are often used as short-term rentals and have hotel-like amenities. Condotel financing is typically more complex than traditional condo financing and can come with higher interest rates and larger down payment requirements. Despite these challenges, owning a condotel can be a lucrative investment if located in a popular vacation destination or urban area with high demand for short-term rentals.

Benefits of Condo Hotel Loans:

Allows for ownership in a desirable tourist attraction location.
Potential for rental income.
Access to hotel amenities and services.
Can be used as a personal vacation home.
May appreciate in value.
Condotel management handles maintenance and renting out the unit,(upto 20 units)
Easier to rent out due to the location and services.
Potential for tax benefits related to rental properties.
Provides a physical asset as opposed to stocks or bonds.
Flexibility to sell the unit when desired.
No need to worry about off-season as the hotel manages occupancy.
Can be part of a diversified investment portfolio.
May offer potential for international buyers.
No need to handle short-term rental logistics.
Can be a unique way to participate in the real estate market.

Commercial Loans

Commercial loans are a type of debt-based funding arrangement between a business and a financial institution such as a bank. They are used to fund major capital expenditures and operational costs businesses may not be able to afford upfront. Terms are negotiated between the institution and the company’s officers, and if approved, the business will have access to the capital with an agreement to repay the money with interest over time. Commercial loans are primarily used to fund business needs such as working capital, equipment purchases, or real estate acquisition or renovation. The loan is secured against a business asset or a personal guarantee from the business owner. The interest rates, terms, and requirements for commercial loans can vary significantly based on the lender, the nature of the business, and the intended use of the funds.

Benefits of Commercial Loans:

Access to large amounts of capital.
Can cover a variety of business needs.
Enables business growth without equity dilution.
Interest payments can be tax-deductible.
Variety of loan options and terms.
Fixed and variable interest rate options.
Can improve business credit rating.
Allows for investment in long-term business assets.
Can provide working capital to manage cash flow.
Some loans may not have prepayment penalties.
Can be structured to meet specific financing needs.
Provides an opportunity for potential business expansion or diversification.
Some lenders offer flexible repayment terms.
Can offer immediate access to funds.
Helps maintain a cash cushion for unexpected expenses.

Loan Programs