714.939.0100

Frequently Asked Questions

1st Time Home Buyer

Broadview Mortgage Corporation specializes in the First Time home buyer and other low down payment programs that enable many families to obtain home ownership that they otherwise would not be able to achieve. Over the years, Broadview Mortgage Corporation has enrolled in many programs that offer such options and has developed the expertise that only few mortgage bankers have achieved. These programs include the following:

97% Loans offered by Government Sponsored Agencies (GSA’s) Federal National Mortgage Company (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) are quasi-sponsored governmental agencies that were formed to provide conventional loans for home ownership. Typically, because the borrowing capacity of these agencies are backed by the “full faith of the government”, the loans (known as conforming loans) purchased by the organizations have lower interest rates than loans provided by other sources (non-conforming loans). In addition, these organizations are mandated to help prospective homeowners obtain favorable financing that they might not otherwise have access to. Hence, several programs have been developed where first time homebuyer only need a 3% down payment, which can in some cases be borrowed from immediate family members or charitable organizations. In addition, these programs require less cash reserves (normally 2 months payments in savings) and higher qualifications ratios. 

Federal Housing Administration (FHA)

The Federal Housing Administration (FHA) was formed in 1934 to provide low down payment loans to borrowers that were not able to get financing from the more traditional sources of the time (Banks and Savings and Loan Institutions). FHA provides loans with as little as 3% down (which can be a gift from an immediate relative). In addition, FHA will accept applicants where the incomes do not cover as much of the housing expense that conventional loans might require. Additionally, FHA will accept credit problems that if given a bone fide reason, the traditional lenders would likely reject. Broadview Mortgage Corporation has had “FHA Delegated Underwriting’ status with FHA since 1991. FHA loans include Fixed Rate Mortgages, Adjustable Rate Mortgages, and Fixed Rate Buydown Mortgages.

Veterans Administration (VA)

For qualified veterans of the armed forces, the Veterans Administration provides loan guarantees to lenders to make not down payment loans for Veteran buyers. A VA loan allows for closing costs to be paid for by the seller which results in a VA "no-no", where no funds are needed by the buyer to close the transaction. Broadview Mortgage Corporation is an approved direct lender as well as an "automatic underwriter" and "appraisal reviewer" for the Veterans Administration since 1993.

California Housing Finance Agency (CalHFA)

The California Housing Finance Agency (CalHFA) is designed to provide up to 100% of the home loan financing to prospective eligible first-time homebuyers at below market rates. It generally consists of a standard 97% FHA fixed rate 30 year mortgage and a 3% CalHFA down payment assistance second mortgage, which is also called a "sleeping" or "silent" second. The second mortgage is offered for 30 years at 3% simple interest. All payments are deferred on this second mortgage until one of the following happens: the CalHFA first mortgage becomes due and payable, the first mortgage is paid in full or refinanced, or the property is sold

In order to qualify for a CalHFA loan, certain eligibility requirements must by met. They are:

·       Have an annual household/family income that does not exceed income limits for the family size and county in which the home is located.

·         Property must be owner occupied for the term of the loan or until sold.

·         Meet credit, income and loan requirements of the CalHFA lender and the private mortgage insurer.

·         Be a first time homebuyer, which is defined as a person(s) who has not had an ownership interest in a primary residence during the previous three years. This requirement is waived if property is located in a federally designated Target Area.

·         Have the legal right to permanently reside in the United States.

Mortgage Credit Certificate

From time to time, California cities and counties will offer qualified applicants, a credit (as opposed to an itemized deduction) from the borrower's tax return in future years. This benefit can be used as credit against housing debt when qualifying a borrower.

Mortgage Assistance Programs Offered by Municipalities and Counties

Several cities in California periodically offer first time home buyers that buy in their communities Mortgage Assistance Programs (MAP) which assist in providing down payment to complete the purchase of the home. These generally come in the form of a second trust deed placed on the property at the time of closing. The terms of the second trust deed varies by city, but generally come in the form of below market rates and/or "silent" payments. Broadview Mortgage Corporation is approved and participates in many of these city programs. 

CHF Platinum

The National Homebuyers Fund offers a CHF Platinum loan that offers a 3% grant to the borrower.  The grant does NOT need to be repaid and can be used to cover closing costs or help with the down payment.  This program is available to First Time Homebuyers but is not exclusive to First Time buyers.

To the top

Steps of a Loan

Getting Pre-Qualified for a home loan

 

Before you start looking for a home to purchase, you should find out what you qualify for. The price range of the homes you look at will depend on this. As local lending professionals, we can guide you through the pre-qualification process, discuss your options and make you aware of any special loan programs you may be eligible for that exist in our area.

 

Getting Pre-Approved for a loan to purchase a Home

After getting pre-qualified, the most important thing you can do is to go ahead with loan process and get fully pre-approved before you decide or extend and offer on a home. This will give you advantages when you are in the negotiating process. As a direct lender, we can get you pre-approved for that home purchase. The process generally begins with meeting with one of our loan professional for a face to face interview.

Working with a professional Real Estate Agent

There are many advantages to working with a professional real estate agent when you are looking for a home. They can assist you in the following ways:

  • Pre-selecting homes that are within your price range and meet your requirements for size, location, etc.
  • Scheduling appointments for you to see homes, even when the owners are not there.

We have professional business associations with several agents in this area and can give you information on how to contact them.

To the top

Loan Application Checklist

Salaried Employee

  • Paystubs for the last month
  • W-2’s for the last 2 calendar years
  • Last three months bank statements for all significant bank accounts
  • Last three months securities statements, if applicable
  • Most recent IRA or Pensions Statements, if applicable
  • Mortgage Coupon/Landlord InformationM
  • Tax Returns and K-1’s if commission, bonuses, dividends, rental income, etc. is needed to qualify
  • Corporate and/or Personal Tax Returns may be required if applicant owns 25% or more of certain entities

Self Employeed

  • Last 2 years Personal Tax Return (1040’s)-Complete copies, including W-2’s
  • Last 2 years Corporate Tax Returns (1120’s)-Complete copies
  • Business profit and loss statement for current calendar or fiscal year
  • Last three months bank statements for all significant bank accounts
  • Last three months Securities statements, if applicable

 

 

To the top

What is Private Mortgage Insurance

Private Mortgage Insurance (PMI) is required on all mortgage transactions where a single loan has a loan amount greater than 80 percent of the property value. For example, if you are purchasing a home for $400,000 with a single loan and have a down payment of less than $80,000, you will be required to carry PMI.

Private Mortgage Insurance protects the lender against a borrower defaulting on a loan. Statistics show that borrowers who put down less than 20 percent are more likely to default so in those cases lenders require PMI to protect their investment.

PMI helps borrowers with less money available for a down payment buy homes. The high price of homes in California makes private mortgage insurance especially helpful for first time homebuyers and families looking to upgrade to a larger home. The insurance helps borrowers finance their homes with less risk to the lender therefore lower rates, lower monthly payments and tax deductible premiums for the borrower. Another benefit of PMI is it allows the borrower to take out only one mortgage, avoiding a high interest rate second, leaving the second lien position open for emergency financing, and allowing the borrower to make only 1 monthly payment.

PMI is fixed and provides borrowers with predictable monthly payments. The insurance can be cancelled as soon as the loan amount has gone below 80 percent of the original property value. Once eligible for PMI cancellation, lenders are required by federal law to annually remind borrowers of this right and explain how to do it. Lenders are required to automatically cancel PMI when the borrowers mortgage balance is 78 percent of the home’s original value.

In addition, for many borrowers, PMI premiums are tax deductible. If the borrowers annual household income is $100,000 or less they may deduct the full cost of their PMI premiums on their federal tax returns beginning with the 2007 tax year.

To summarize, the benefits of PMI are that it is affordable, predictable, cancelable, and deductible. PMI can help borrowers buy homes without a 20 percent down payment and without a high interest rate second mortgage.

To the top

How to Opt Out of Prescreened Credit Offers & Protect Your Personal Information

Telemarketing has become an enormous problem that most Americans have to deal with. Many consumers don’t understand how their names, phone numbers, and personal information fall into the unwelcome hands of telemarketers. So how do telemarketers get your personal information? Perhaps the better question is how do you prevent it from happening?

Every time your credit is checked the information provided to the credit bureaus (Equifax, TransUnion, and Experian) immediately becomes a commodity that is sold to other lenders and companies that sell and resell your name and personal information. These “trigger-lists” that are being shared include your name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender, and estimated income. Trigger lists open the door for bait-and-switch schemes where lenders (who have purchased the lists) advertise falsely discounted rates to pull in unsuspecting customers who have recently applied to a local broker and got a higher, fair market rate quote. Often, consumers fall for these schemes only to find that the low-ball rate they were being quoted is not available.

Many people ask – is this legal? Unfortunately, at the present time, the answer is yes. However, there are steps that you, your family, friends and co-workers can take to eliminate the buying and selling of your personal information. You can cut off all potential pre-screened credit solicitations by opting out which prevents the credit bureaus from ever selling your personal information to anyone for marketing campaigns. You can do this by visiting www.optoutprescreen.com, or by calling (888) 567-8688. You must opt out at least 48 hours prior to having your credit checked to make sure it is processed in time. It will take between 5 and 60 days before all pre-screened offers cease.

You also might want to consider adding your phone numbers to the National Do Not Call Registry. You can access the National Do Not Call Registry at www.donotcall.gov or at (888) 382-1222. If you would like to file a complaint about the practice of generating and selling trigger lists, or if you have continued to receive unwanted solicitations you can do so through the Federal Trade Commission. You can access the FTC online at www.ftc.gov.

To the top