SOURCES OF HOME LOANS

Introduction

Home loans are available through many different sources, including mortgage banking companies, commercial banks, community banks, credit unions, savings banks, mortgage brokers, and other financial institutions.

To find a lender, you can:

• Contactyourbankorfinancialinstitution.

• Consultanonprofithousingcounselingagency in your area.

• Askfamilymembers,friends,andco-workers.

• Askyourrealestateagent.

Additionally,therearemanygovernmentprogramsthatofferhome loans and/or assistance to homebuyers.

Federal Programs

Thereareavarietyofhomebuyer-assistanceprogramssponsored by the Federal government, including programs thatofferdownpaymentassistanceforlow-tomoderate-income home purchasers; mortgage insurance programs; specialhomeloanprogramsforveterans,teachersandlawenforcementofficers;andloanstohelprevitalizeinner-cityhousing.TheDepartmentofHousingandUrbanDevelopment(HUD)hasestablishedanetworkofHUD-approved housing counseling agencies that can provide informationonFederalprogramsandgiveyouadvice on buying a home, resolving credit issues, and other relatedmatters.Formoreinformation,contactHUDat www.hud.govor(800)569-4287tofindaHUD-approvedhousing counseling agency in your area.

Contact CalBRE

TocontacttheCaliforniaBureauofRealEstate, call(877)373-4542toll-freeforassistancein

EnglishorSpanish.

Bureau of Real Estate District Offices

Sacramento (PrincipalOffice)1651ExpositionBoulevardSacramento,CA95815

Fresno 2550MariposaMall, Suite3070 Fresno,CA93721-2273

PDE_16-122

DEPARTMENT OF CONSUMER AFFAIRSBUREAU OF REAL ESTATE

1651 Exposition Blvd.Sacramento, CA 95815

Public Information Line: (877) 373-4542Fax: (916) 263-8943www.calbre.ca.gov

Los Angeles 320W.4thStreet,Suite350LosAngeles,CA90013-1105

Oakland 1515ClayStreet,Suite702Oakland,CA94612-1462

San Diego 1350FrontStreet,Suite1063SanDiego,CA92101-3687

State Programs

California Housing Finance Agency (CalHFA):CalHFAadministersseveraldifferenthomeownershipprograms.CalHFAoffers30-yearfixed-ratemortgageloanswithinterestratesandfeesthataretypicallylowerthanconventional homeloans,withcapsonfeesandrates.CalHFAalsoprovidesdownpaymentassistancewithdeferredpaymentsthat do not need to be repaid until the home is sold, refinanced,orpaidinfull.Formoreinformation,contactCalHFAatwww.calhfa.ca.govor(877)922-5432.

Department of Veterans Affairs (CalVet):CalVetoffers homeloanstoeligibleveteransatalowinterestrate,with lowornodownpayment,andwithlowloanfees.CalVet loanscanalsobeusedforconstructionandrehabilitation. Formoreinformation,contactCalVetatwww.cdva.ca.gov or(800)952-5626.

Department of Housing and Community Development (HCD):HCDoffersseveralprogramsthathelphomebuyers,primarilythosewithlowtomoderateincomelevels,byfundinglocalpublicagenciesandprivateentities,which in turn produce affordable housing or make loans and grants toendusersatthelocallevel.FormoreinformationaboutHCD’sprograms,contactHCDatwww.hcd.ca.gov/fa or (916)263-6928toobtainacopyoftheLoanandGrantProgramDirectory.

City and County Programs

MostcitiesandcountiesinCaliforniaofferhomebuyerassistanceprogramsdesignedtomeettheneedsof their respective communities. These programs may offer homeloanstofirst-timebuyers,providedownpaymentassistance,offerfundingforpropertyrehabilitationandcommunityrevitalization,etc.ManyofthepreviouslydescribedFederalandStatehomebuyerassistanceprogramsareadministeredbycitiesandcounties.Tofindoutwhatprograms are available in your community, contact your local planning, community development, and/or housing departments.ContactinformationcanbefoundintheCaliforniaPlannersBookofListsatwww.opr.ca.gov/s_publications.php.

Additionally,manycountiesinCaliforniaparticipateintheMortgageCreditCertificate(MCC)program.AqualifiedhomebuyercanobtainanMCC,whichactsasaFederalincometaxcredit.Itreducesanindividual’sincometaxandincreasesnetearnings,thusallowingabuyertomoreeasilyqualifyforamortgage.ToseeifyourcommunityhasanMCCprogram,contactyourlocalhousingorredevelopmentagency or ask your real estate agent, mortgage broker, or lender.

Tips for Borrowers

• AskforaMortgageLoanDisclosureStatementand/or aloanestimate.Thesedocumentswilltellyou thecostandproposedtermsoftheloan.

• Ifusingtheservicesofamortgagebroker, contacttheCaliforniaDepartmentofBusiness Oversightatwww.dbo.ca.govor(866)275-2677, and/ortheBureauofRealEstateatwww.calbre.ca.gov or(877)373-4542tomakesurethemortgagebrokerisproperly licensed.

• Consideraskingthemortgagebrokerforreferences.

• Checkforspecialprogramsyoumayqualifyfor withFederal,Stateorlocalgovernment.

• Donotsignblankformsorformsyoudonotunderstand.

• Askforcopiesoftheformsyoucompleteorsign.

Questions to Ask When Applying for a Home Loan

• Whoisthelender?

• Whatistheinterestrateandtermoftheloan?

• Whatisthemonthlypaymentforprincipalandinterest?

• Howmucharethepropertytaxesandinsurance?

• Whatistheannualpercentagerate?

• Whatarepoints?

• Isarebatebeingpaidbythelendertothebroker?

• WhenwillIreceiveanestimateofmycostsfortheloan?

• Isthereaprepaymentpenalty?

• Isthereaballoonpayment?Whenisitdueandhowmuchisthepayment?

• Arethereanyup-frontfeestopay?

• IfIhavetopayup-frontfees,aretheyrefundable?

• Howlongdoesloanapprovaltake?

• Whenwilltheloancloseandhowmuchmoney mustIhaveatclosing?

• IfIhavearatelockedin,isitinwriting?

• Whathappensifinterestrateschangeduring theloanprocess?

• Iftheloandoesnotgothrough,isthereacancellationcharge?

• Istheloanassumablebysomeonelater?Isthere afee?