Conventional Loans with Ed Huber

Conventional LoansUnlike FHA loans, conventional loans are popular mortgages that are not insured by the federal government. They are typically offered through private lenders, such as banks, credit unions, and mortgage companies. Here's a basic summary of conventional loans:Down Payment: Conventional loans often require higher down payments than FHA loans, typically around 5% to 20% of the purchase price. However, some programs allow for lower down payments.Credit Score Requirements: Borrowers generally need a higher credit score for a conventional loan than FHA loans. Most lenders prefer a credit score of 620 or higher.Mortgage Insurance: Private mortgage insurance (PMI) is required for conventional loans if the down payment is less than 20% of the home's purchase price. PMI can be removed once the loan-to-value ratio (LTV) reaches 78% through principal payments, unlike FHA loans, where mortgage insurance may continue for the life of the loan.Loan Limits: Conventional loans also have loan limits, typically higher than FHA loan limits. These limits can vary depending on the area and the housing market.Property Standards: Conventional loans may have less stringent property standards than FHA loans. However, the property's condition can still affect the loan approval, as lenders need to ensure the property is a good investment.Flexibility: Conventional loans offer more flexibility regarding loan types and terms, including fixed-rate and adjustable-rate mortgages (ARMs) with various term lengths.Loan Purpose: These loans can be used for a primary residence, second home, or investment property, providing more options than FHA loans, which are strictly for primary residences.No Government Insurance: Since the government does not back conventional loans, they pose a higher risk to lenders. As a result, the qualification criteria can be stricter, including credit score, debt-to-income ratio (DTI), and financial history.Conventional loans are a good fit for borrowers with solid credit, a stable income, and the ability to make a higher down payment. They offer many options and flexibility, making them a preferred choice for many homebuyers and investors.

FHA Loans with Ed Huber

FHA LoansFHA loans are a type of government-backed mortgage insured by the Federal Housing Administration, designed to make home-buying more accessible to people with lower credit scores and smaller down payments. Here's a basic summary:Low Down Payments: FHA loans allow for down payments as low as 3.5% of the purchase price for borrowers with credit scores of 580 or higher. For those with credit scores between 500 and 579, a 10% down payment may be required.Credit Score Flexibility: FHA loans are accessible to individuals with lower credit scores than conventional loans. While the exact credit score requirements vary by lender, the FHA allows for scores as low as 500 under certain conditions.Mortgage Insurance: Borrowers must pay insurance premiums (MIP) for FHA loans. This includes an upfront premium, usually 1.75% of the loan amount, and an annual premium, which varies based on the loan term, loan amount, and the initial loan-to-value ratio (LTV).Loan Limits: FHA loans limit how much you can borrow, which vary by county and are adjusted annually.Property Requirements: The home must meet specific safety, security, and soundness (structural integrity) standards as determined by an FHA-approved appraiser.Primary Residence Only: FHA loans are intended for primary residences only, meaning the borrower must intend to live in the home as their principal residence.Assumable: FHA loans are assumable, meaning a future buyer can take over your loan under the same terms, which can be a selling point if interest rates rise in the future.Loan Types: FHA loans can be used for various types of properties and purposes, including purchasing single-family homes, multifamily properties (up to 4 units), specific condos, and refinancing existing mortgages.FHA loans are popular among first-time homebuyers due to their lower credit score and down payment requirements. Still, they can also be a good option for anyone who meets the eligibility criteria and is looking for more lenient borrowing terms.

Rate Buy Down Options with Ed Huber

Rate Buy-Down OptionsTemporary and Permanent Rate Buydowns are mortgage options that allow borrowers to secure lower interest rates for either a limited period (temporary) or for the entire loan term (permanent), often in exchange for an upfront payment. Here's a summary of both:Temporary Rate Buydown:Structure: A temporary rate buydown reduces the mortgage interest rate and, consequently, the monthly payment for an initial period of the loan term, typically 1 to 3 years. The most common structures are "2-1" and "3-2-1" buydowns, where the interest rate is reduced by 2% in the first year, 1% in the second year for a 2-1 buydown, and similarly for a 3-2-1 buydown, before returning to the original rate for the remainder of the term.Upfront Payment: The reduced interest payments are typically funded by an upfront lump sum paid at closing, either by the borrower, the seller, or a third party as part of the negotiation.Benefits: This option can benefit borrowers who expect their income to increase, allowing them to afford higher payments later on while benefiting from lower payments initially.Use Cases: Builders often use Temporary buydowns in new home sales as an incentive or by home sellers in a buyers' market to make the purchase more attractive.Permanent Rate Buydown:Structure: A permanent rate buydown lowers the interest rate for the loan's entire life, resulting in lower monthly payments throughout the term.Upfront Payment: The interest rate reduction is achieved by paying points upfront at closing. One point typically costs 1% of the loan amount and can reduce the interest rate by a certain percentage, depending on the lender's terms.Long-Term Savings: Although this option requires a more considerable upfront investment, it can lead to significant interest savings over the life of the loan.Considerations: Borrowers should consider how long they plan to stay in the home and whether the upfront cost justifies the long-term savings from the reduced interest rate.Both temporary and permanent rate buydowns can be effective strategies to reduce mortgage costs. Still, they require careful consideration of the borrower's financial situation, plans, and the overall housing market. Temporary buydowns offer short-term relief, while permanent buydowns provide long-term savings, making it essential to analyze which option aligns best with one's financial goals and circumstances.

555 South St.

Stunning Remodeled Single-Story Home Prime Location & Community: Yorba Linda Country Club Access: Just a short golf cart ride away, indulge in championship Golf, Swimming, Tennis, and an array of other amenities. Outdoor Recreation: Explore nearby biking and hiking trails and enjoy the park area, which is perfect for family outings. Close-Knit Community Feel: Experience the privacy and warmth of this friendly neighborhood. Home Features: Elegant Design: Step into the separate drop-down living room with vaulted, beamed ceilings, creating an open and inviting atmosphere. Family Area & Fireplace: Cozy up by the fireplace, with multiple windows and a slider to the rear yard, ensuring abundant natural light. Gourmet Kitchen: Fully equipped with new cabinets, vast quartz countertops, a large pantry, canned lighting, new appliances, and an island with additional seating and pendant lighting. Luxurious Bedrooms: The primary bedroom boasts vaulted beamed ceilings, a wall-length closet, and an en-suite with a walk-in shower, sunk-in tub, and double sinks. Two additional spacious bedrooms offer easy access to a well-appointed hall bath. Modern Upgrades: Enjoy new flooring, plumbing, and lighting fixtures throughout. Additional Perks: Landscaping & Irrigation: Newly landscaped front and rear yards with a newer irrigation system. Oversized Three-Car Garage: Ample space for vehicles and storage, plus potential RV parking. Solar Energy: Benefit from free and clear solar panels, ensuring energy efficiency and cost savings. No Mello Roos Tax or HOA Dues: An added financial advantage, along with belonging to the award-winning Placentia, Yorba Linda School District. With its combination of luxury, comfort, and a welcoming community, this rare find in Parkside Estates is an ideal place to call home. Don't miss your chance to own this beautifully upgraded property in a prime location.

333 South St.

Stunning Remodeled Single-Story Home Prime Location & Community: Yorba Linda Country Club Access: Just a short golf cart ride away, indulge in championship Golf, Swimming, Tennis, and an array of other amenities. Outdoor Recreation: Explore nearby biking and hiking trails and enjoy the park area, which is perfect for family outings. Close-Knit Community Feel: Experience the privacy and warmth of this friendly neighborhood. Home Features: Elegant Design: Step into the separate drop-down living room with vaulted, beamed ceilings, creating an open and inviting atmosphere. Family Area & Fireplace: Cozy up by the fireplace, with multiple windows and a slider to the rear yard, ensuring abundant natural light. Gourmet Kitchen: Fully equipped with new cabinets, vast quartz countertops, a large pantry, canned lighting, new appliances, and an island with additional seating and pendant lighting. Luxurious Bedrooms: The primary bedroom boasts vaulted beamed ceilings, a wall-length closet, and an en-suite with a walk-in shower, sunk-in tub, and double sinks. Two additional spacious bedrooms offer easy access to a well-appointed hall bath. Modern Upgrades: Enjoy new flooring, plumbing, and lighting fixtures throughout. Additional Perks: Landscaping & Irrigation: Newly landscaped front and rear yards with a newer irrigation system. Oversized Three-Car Garage: Ample space for vehicles and storage, plus potential RV parking. Solar Energy: Benefit from free and clear solar panels, ensuring energy efficiency and cost savings. No Mello Roos Tax or HOA Dues: An added financial advantage, along with belonging to the award-winning Placentia, Yorba Linda School District. With its combination of luxury, comfort, and a welcoming community, this rare find in Parkside Estates is an ideal place to call home. Don't miss your chance to own this beautifully upgraded property in a prime location.

111 South St.

Stunning Remodeled Single-Story Home Prime Location & Community: Yorba Linda Country Club Access: Just a short golf cart ride away, indulge in championship Golf, Swimming, Tennis, and an array of other amenities. Outdoor Recreation: Explore nearby biking and hiking trails and enjoy the park area, which is perfect for family outings. Close-Knit Community Feel: Experience the privacy and warmth of this friendly neighborhood. Home Features: Elegant Design: Step into the separate drop-down living room with vaulted, beamed ceilings, creating an open and inviting atmosphere. Family Area & Fireplace: Cozy up by the fireplace, with multiple windows and a slider to the rear yard, ensuring abundant natural light. Gourmet Kitchen: Fully equipped with new cabinets, vast quartz countertops, a large pantry, canned lighting, new appliances, and an island with additional seating and pendant lighting. Luxurious Bedrooms: The primary bedroom boasts vaulted beamed ceilings, a wall-length closet, and an en-suite with a walk-in shower, sunk-in tub, and double sinks. Two additional spacious bedrooms offer easy access to a well-appointed hall bath. Modern Upgrades: Enjoy new flooring, plumbing, and lighting fixtures throughout. Additional Perks: Landscaping & Irrigation: Newly landscaped front and rear yards with a newer irrigation system. Oversized Three-Car Garage: Ample space for vehicles and storage, plus potential RV parking. Solar Energy: Benefit from free and clear solar panels, ensuring energy efficiency and cost savings. No Mello Roos Tax or HOA Dues: An added financial advantage, along with belonging to the award-winning Placentia, Yorba Linda School District. With its combination of luxury, comfort, and a welcoming community, this rare find in Parkside Estates is an ideal place to call home. Don't miss your chance to own this beautifully upgraded property in a prime location.

South Beach