Buying a home in Orange County is no easy task.
Many potential homebuyers do it all backwards, shopping for a home first and later finding out they don’t qualify for the loan.
Some will even play around with mortgage calculators found on many websites.
But there are many different loan programs, and the underwriting guidelines can seem like a maze.
Which is why it is so important that your first step in buying a home is to talk to a loan officer experienced in working with home buyers, especially in Orange County.
Loan Programs for Orange County Home Buyers
The FHA Loan Program
The FHA Loan Program has been very popular since the mortgage meltdown in 2008. While it is often thought of as just for First Time Home Buyers, the FHA program is also good for move up buyers. The FHA loan limit in Orange County is $679,650 in 2018 and only requires a 3.5% down payment.
The VA Loan Program
The VA Loan program is for eligible Veterans and offer ZERO Down loan programs. The Orange County VA Loan limit for 2018 is $679,650. There are many advantages that the VA loan program has over other types of programs. Also, the Jumbo VA loan, which does require a down payment, can go as high as $2,000,000.
Conventional Loan Programs
Conventional Financing includes Fannie Mae an Freddie Mac programs. The underwriting guidelines for these programs are fairly standardized, but it is possible to put as little as 5% down down on certain programs. The “high balance” loan limit for Orange County is $679,650 in 2018.
Jumbo Loan Programs
A Jumbo loan program tends to cover loan amounts that are outside of the Conventional loan limits of $679,650. Underwriting guidelines for these programs can be a little more flexible than Conventional loan programs. They also tend to require more down payment.
Which Program is best for your Home Purchase?
Figuring out which loan program is best when buying a home in Orange County can be tough without the help of an experienced loan officer. The best program for your situation will depending on many factors, including:
- How much down payment do you have?
- Will the down payment come from your own funds, a 401k, or a gift from a relative?
- Are you a Veteran? (because the VA program is awesome)
- How is your credit?
- Had a recent foreclosure, short sale, or bankruptcy?
- Do you need a co-signer to qualify?