"The right Lender coupled with the right Realtor, can make the right Buyer, very very happy." Eric G. Meeks, Broker of RE/MAX Desert Properties Lic#01391813,NMLS#2467947

Denise Goodman 760.774.8574 DGoodman@vanmarlending.com NMLS #397338 CalDRE Lic #00577880	Kristen Martinez 760.702.0011 KMartinez@vanmarlending.com NMLS #339615 CalDRE Lic #01797189

The following list details some of the various types of loans commonly used for purchasing homes in the Coachella Valley. Programs may change at anytime without prior notice. The ONLY way to confirm that any of these details are still current and apply to you, your desired home, or your home loan, is to talk to a lender.

BANK STATEMENT LOANS: These loans are generally used by business owners, the self-employed, or people with non-traditional income sources. The borrower must have a letter from a Certified Public Accountant confirming their business is in good standing. The interest rates on these loans are generally higher than other loans. The lender will review all deposits through the aplicants bank accounts and then divide the monthly total by 2 to determine income. On some businesses, the lender my estimate at less than 50%. A minimum score of 680 is required. (We can lower it sometimes, but the effect on the application process and loan terms are harsh). The loan can be for a primary residence or an investment property.

CONVENTIONAL LOANS: Minimum down payment is 3%. Eligible for down payment assistance within individual program guidelines. The maximum conventional conforming loan limit in 2024 is $766,500. It is important to remember that each county has a different loan limit. Income to expense requirements apply. Minimum FICO of 620. Although at times, conventional financers may want to look at an FHA loan if their FICO is below 680. Mortgage insurance is required for loans with less than 20% down, although sometimes lender or seller may pay for mortgage insurance, depending upon other terms of the loan or willingness of seller. Income vs Expenses ratios apply.

NO MONEY DOWN LOANS: There is no simple one-size-fits-all path to No Money down loans for every home. VA loans (Veterans Administration) can often be done with no money down. Also, some zip codes of rural areas may qualify for USDA loans which have No Money Down programs. In more populated areas, people with exceptional credit might inspire the lender to work with less money down (but usually not zero down) and combine this factor with sellers who may participate in how a transaction is structured to reduce or eliminate necessary down payments or closing costs on the sale of their home. Plus, there are down payment assistance programs. Many of these options require a strong Loan Officer/Realtor/Client relationship and the buyer must be patient, because not all sellers will participate in these types of transactions. Sometimes it takes a while to find the right home both from the Buyer's perspective and a willing seller.

DOWN PAYMENT ASSISTANCE:  Occasionally, there are local, county, state, or Federal down payment assistance programs. Our recommended lenders can share with you what programs are available at any given time.

DSCR LOANS: Debt Service Coverage loans are mortgages which us a property's income and cash flow to qualify borrowers, rather than the borrowers income and cash flow. These loans do not require an income for the borrower, have minimum FICO score requirement o 680. An appraiser must state that the property will rent on a monthly basis for more than the mortgage payment. DSCR loans are sometimes called Investor Cash Flow loans. 

FHA: Federal Housing Administration loans are guaranteed by the department of Housing and Urban Development (HUD) and have a minimum down payment is 3.5%. Minimum FICO of 580, although sometimes a FICO of 550 may still qualify. Eligible for down payment assistance within individual program guidelines. The maximum FHA conforming loan limit in 2024 is $644,000. You can add up to 4 people on a loan to qualify.

FHA 203K & PROPERTY IMPROVEMENT LOANS: These programs are similar to a traditional FHA loans, but it allows a little something extra to cover the cost of improvements; like...if the home needed a new roof, or if the kitchen needs refurbishing, or maybe the pool needs rehab, etc. Some improvements can be scheduled into the purchase and combined in the loan, with the work to be done after closing. Qualified bids must be submitted for the work by a program approved licensed contractor. But these programs can be obtained to heklp a purchaser buy a property that can also have instant equity if applied for maximum benefit.

FIRST-TIME BUYER PROGRAMS: These programs are often a combination of other programs, such as an FHA loan + Little to no money down + a co-signor or a buyer with some beginner credit. Thing is though, most First-Time Buyer programs do not necessarily require a purchaser to never have bought a home before. More likely, the purchaser simply cannot have purchased a home within the past 3-7 years, and to not presently own a home. Talk to a lender for complete details.

HARD MONEY LOANS: Minimum down payment of 30% is common on these types of loans. Purchasers with no income may still qualify and many lenders do not even look at a FiCO score. Hard money loans are geenrally for shorter terms of 6 months to 5 years, although some term lengths may vary, and these loans are often interest only for the payment periods.

REVERSE MORTGAGE: These loans generally require a substantial down payment or a sizeable instant equity in the home, or both. The borrower who chooses this path usually wants to secure a residence and an income for life, as the buyer will be able to remain in the home till death, even if the monthly payment portion of the loan runs out. Upon passing, the homeowners heirs will have the choice of paying back the loan, selling the home for any equity it may have at the time, or simply letting it go back to the bank if theire's not enough equity to warrant any other action.

USDA LOANS: United States Department of Agriculture loans are a national program offering No Money Down mortgages to low-income people for home purchases in rural zip codes. The cities which currently qualify for USDA loans in the Coachella Valley and High-Desert are: Desert Hot Springs (92240), Sky Valley (92241), Thermal (92254), Snow Creek and West Desert Hot Springs (92282), Morongo Valley (92256), Yucca Valley (92284), Johsua Tree (92252), Twentynine Palms (92278), Landers (92285), and other rural areas. Please talk to a lender for complete details and to verify a particular address's qualification.

VA: Veterans Administration loans allow military veeterans to purchase homes under very lenient terms, including the best interest rates on the market. No mortgage insurance is required. 100% financing and no money down is very common on these loans, although they do require a willing seller. A buyer may go over the county FHA loan limit on price, but them money down is required to bring the loan back into parameters. VA's requirement on credit score is dependent on the Direct Underwriter's findings. We generally try to stay above a 620 FICO on submissions.

Disclaimer/Disclosure: Please talk to a lender before making a purchase decision if you are intent on financing. To not do so, may result in you being contractually liable for a purchase you are unable to complete. If you already have a lender, RE/MAX Desert Properties will work with the lender of your choice. You are not required to use Vanmar Lending to do business with RE/MAX Desert Properties, nor are you required to ussed RE/MAX Desert Properties if you are getting a loan through Vanmar Lending. Please see our Affiliated Business Disclosure to understand our cooperative business relationship.