Sharr Flip book

A basic guide from choosing the right
purchase loans and programs for first
time home buyers
[California]
+bonus tips about interest rates and
credit scores

Chapter 1
Types of Loans
1. Conventional
2. VA
3. FHA
4. USDA
A Quick DIY Basic Calulation
to determine down payment
(what lender pay attention too)
Front end ratio Conventional
= VA
Back end ratio FHA
*Other determining factors may be calculated by mortgage lenders
California Housing Finance Agency
(California)
-Eligibility and Requirements
Credit Scores
CalHFA Loan Programs
My home assistance
CalHFA zero interest
School teacher and
employee assistance
CAL-EEM+Grant program
Bonus:
Interest rate for 2019(subject to change)
20 yr(year) fixed rate 3.70%
15 yr fixed rate 3.90%
30 yr FHA rate 3.35%
30 yr VA rate 3.42%
What Stays onYour Credit Report
Negative info- 7 years
Paid tax liens- 7 years
Bankruptcy- 10 years
Unpaid tax liens- Forever

Credit Score Cheat Sheet
Pay your accounts on time. If you know you will be 30 days late call your creditors.
This accounts for 36% of year total credit score.
Pay down your credit card debt. Keep balances under 30% of your credit limit.
Build credit at a young age. Apply for your first credit card at 18 or get added as a
authorized user.
Have a mature line of credit. It is best to have a mortgage, auto loan, and credit
card.
Category
Score
Excellent (13% of people) 750-850
Good (13% of people) 700-749
Fair (18% of people) 650-699
Poor (34% of people) 550-649
Bad (16% of people) 350-549
For any additional information concerning mortgage loans and first time home
buyers programs, please contact Coastal Lending at
(562) 315-8220 or ssplive@live.com

Conventional Mortgage Loans
-Low down payment (3-5%)
-Less than 20% down payment requires limited mortgage
Insurance premiums
-20% down payment or more requires no mortgage insurance premiums
-Should have sufficient liquid assets to make a cash down payment, pay closing cost
and other expenses related to the purchase of the property.
-Should have two months of house payments or deposits.
- Loans are made by bank or institutional lender.
VA Loans
(Military)
-Low
-Low down payment/ No down payment
-No pre-payment penalty
-No mortgage insurance
-VA funding fee waived for veterans with disabilities or surviving spouses
FHA Loan
-Low credit score
-Low down payment (3.5%)
Depends on credit score
-10% down payment for a lower credit score
-Mortgage insurance is required and cannot be canceled MIP (Mortgage Insurance
Premium) or UF (Up Front) MIP
- Entire down payment can be a gift from a relative
-Lenders set interest rate not FHA
USDA Loan
( U.S. Department of Agriculture
-No down payment
-Eligible rural and suburban home buyers
-Income limitations
(vary by region)
-No pre payment penalties
-No premium mortgage insurance
-100% purchase loan for rural areas or farming properties
-Funds can be used to build, repair, renovate or relocate a home.
-Front end ratio= 29% or less
-Back end ratio= 41% or less
-Must meet income requirements based off area medium income

(AMI) AMIX 115%=Yearly
CAL FHA Programs
(eligibility)
-Property must be located on California or borrower primary residence until its sold
or refinanced
-First time home buyers, U.S. citizens, permanent residents or qualified aliens
-Must meet all income and sales price requirements of the lender and mortgage
insurer
-Must take an approved home buyer education course and obtain a certificate of
completion
-Minimum credit score 640
Credit Scores
-Conventional loan ~660 or higher
-FHA loan ~580 or higher
(money for down payment interest rate is higher)
Based on lender requirements
-VA loan ~ 640 or higher
-USDA loan ~620 or higher
CAL FHA
loan programs
CAL FHA
Zero interest
-Closing cost assistance
-Provides up to 4% of total loan amount in a no interest second loan
-Loan is deferred as long as you reside in home
-Required to pay back in full if sold, refinanced, or title is transferred to someone
else or default on loan
My Home Assistance
-Low to moderate income
-Down payment assistance
-Closing cost
-Can combine My Home Assistance program with another down payment
assistance or grant programs
-Loans are limited to 3.5% of home purchase price or appraised sale
-Loan does not need to be paid back until the home is sold, refinanced, or paid off
School Teacher and Employee Assistance
(teachers, public /charter school employees)

-Down payment assistance
-Loans are limit to 4% of sales price or appraised value
(whichever is lower)
-Can combine with other FHA approved or Fannie Mae
CAL- EEM + Grant Program
-Energy efficient improvements grossing more than maximum allowed for FHA
-Repeat home buyer and with a short term fixed rate
-Combined with a grant up to 4% total loan amount
-Help with down payment can be combined with
My Home Assistance or Teacher Employee Assistance program
About the Author
The “MaMu” of real estate, as her grandson calls her, Sharnique Williams, is a native
of South Carolina. Growing up in the south, at heart Mamu has always enjoyed
nurturing families and individuals whether it is by giving her helping hand,
knowledge, support, or comfort. For years she has worked as a leasing professional
where she leased apartments. Most of her clients were first time renters. Helping
smiling families brought her great joy with every approval. Within a few years Mamu
transitioned to licensed Realtor in Atlanta, GA with Beccon Properties Realty where
she could truly broadcast her qualities in seeing families happy in their new homes.
Following her ambition she relocated to California to become a licensed Realtor with
Berkshire Hathaway Luxury Homes. Inspired, she create this interactive electronic
publication. A easy guide to prepare future families and individuals for first time
home buying with choosing the right purchase loan and program so, love, peace and
happiness, can flourish in a place they can call home.