Shasta Mortgage offers a variety of loan programs to meet your needs. We work with the nations largest wholesale lenders to offer you the most competitive rates and fees in the marketplace. If you don't see the program on the website, please ask -- chances are good that I have a lender for you.

We offer a wide array of both conventional and Government loans, inluding VA; FHA & USDA.

Conventional Loans -- what are they?

Just what defines a conventional loan? The dominant number of loans made in the conventional market use Fannie Mae and Freddie Mac guidelines for conforming loans. Conventional loans are "conforming" if they are generally $453,100 or less for a single-family home for 2018. Conforming loan limits can be higher in regions designated as "high cost". For example, in such states as Alaska and Hawaii, it's $679,650.

There are guidelines for borrower credit scores, income requirements and minimum down payments. For example, most conventional loans require somewhere between 5 percent and 20 percent down.

Guidelines are changing frequently but borrowers should have at least a 620 credit score. Anything below a 740 credit score and lenders start adding fees which can be quite sizable to mitigate Fannie Mae's "LLPA's" or Loan Level Pricing Adjustments. These, simply put, are costs associated with higher risk, such as higher premiums would be charged for auto insurance to a driver with an accident, or speeding tickets.

Conventional loans can be conforming or nonconforming. Loans above the lending limits set by Fannie Mae and Freddie Mac are called nonconforming or jumbo loans.

Most conventional mortgages have either fixed or adjustable interest rates. Typical fixed interest rate loans have a term of 15 or 30 years, although terms of 25, 20 or 10 years are also available. A shorter-term loan usually results in a lower interest rate. Adjustable-rate mortgages, or ARMs, fluctuate in relation to the rate of a standard financial index, such as the LIBOR. Monthly payments can go up or down accordingly.

Conventional mortgages generally pose fewer bureaucratic hurdles than FHA or VA mortgages, which may take longer to process because of the red tape. And because these mortgages generally require higher down payments than the others, home equity can build up faster.

Fixed Rate FHA Loans and The Popular 203(b) Federally Guaranteed Mortgage

FHA home loans have been around for over 70 years now by serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

FHA loans benefit those who would like to purchase a home but haven't been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure. Is is the only home loan that allows Non-Occupying Co-signers!

FHA loans often loan often work well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

Mortgage Insurance on FHA mortgages comes two ways. The first segment is rolled into your loan amount in the form of a Up Front Mortgage Premium or UFMIP, of 1.75% of your total loan amount. The second component is rolled into the total monthly payment at 0.85 percent of the total loan amount, divided by 12. After five years, or when the loan balance reaches 78 percent, the monthly mortgage insurance is typically met and therefore drops off the total monthly payment.

FHA offers fixed rate mortgages, Graduated Payment Mortgages and Adjustable Rate Mortgages. They are available for single family homes, condos, and manufactured homes. Guidelines for income documentation are typically less stringent than required of a conventional loan.

VA -- Veteran's Administration Loans

I love VA loans! It s one of the only loan programs that still allows the borrower to finance 100% of the home's value and purchase with $0 down.

VA offers two benefits that will substantially lower your monthly payment. PMI, or private mortgage insurance is not required on a VA loan. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value. You'll also be able to take advantage of low, competitive rates.

The qualification guidelines are less stringent for VA Loans. The calculation for qualifying for a VA loan considers residual income, or the income left over after all your monthly debt -- this is the only loan program that does this, and it's logical and allows for borrowers to often qualify for more loan that through conventional or FHA channels. VA is a fixed rate mortgage only, 30 and 15 year.

To be eligible for a VA loan, you must have been an active member of one of the branches of the US Military.

USDA Loan - Rural Housing Program

USDA Loans, once known as the Farm Home Loan. The USDA loan is my personal favorite and one of the best loan programs around -- I wish more people would take advantage of it! This is a 30 year fixed rate only program, which finances 100% of your purchase price. NO Down payment is required. The USDA loan guidelines are pretty straight-forward. You must qualify for the program and your home must, too. Primary residences only - and no "non occupying" co-borrowers or co-signors.

To be eligible for a USDA loan, your home must be located in a rural area. However, the USDA's definition of "rural" is quite liberal, and allows for population bases of up to 25,000 people. Many small towns meet the USDA requirements, as do suburbs and exurbs of many major U.S. cities.

USDA is NOT a first time buyer program, it can be used by first-time buyers and repeat buyers, however you may only own ONE home.

The USDA / Rural Housing loan is a 30-year fixed rate mortgage only. There is no 15-year fixed rate mortgage and no adjustable-rate mortgages. 30-year fixed only.

Gifts are allowed for closing costs, and yes, the USDA Rural Housing Program allows sellers to pay closing costs for buyers. These costs can include state and local government fees, lender costs, title charges, and any number of home and pest inspections.

Credit score minimums are generally 640 and if you are a W-2 employee, you are eligible for USDA financing immediately; you don't need a job history. If you have less than 2 years in a job, however, you may not be able to use any bonus or overtime income for qualification purposes.

Self-employed borrowers will be asked to provide 2 years of federal tax returns to verify self-employment income.

The Rural Housing Program is now entirely self-funded. Formerly, it was taxpayer-subsidized. As a result, USDA has changed how it charges its borrowers for mortgage insurance.

Effective October 1, 2012, USDA mortgage insurance rates will be:

· 2.75% upfront fee paid at closing, based on the loan size and can be financed into the mortgage.

· For all loans, 0.50% annual fee, based on the remaining principal balance, paid monthly with your payment.

So, for example, a $100,000 loan size would require a $2,750 mortgage insurance payment at closing (which is typically added to the loan amount, much like FHA) and $41.67 paid monthly.

USDA Rural Housing Program mortgage rates are often as low as comparable conventional 30-year fixed mortgage rates. And because mortgage insurance rates are lower, with no down payment, USDA loans can often be a better deal than FHA or conventional financing. Only one county in California is completely ineligible and that is San Francisco, but all properties in the following counties are eligible under USDA's definition.

Alpine - Glenn - Mendocino - Sierra - Amador - Inyo - Modoc - Siskiyou - Calaveras - Lake - Mono - Tehama - Colusa - Lassen - Nevada - Trinity - Del Norte - Mariposa - Plumas - Tuolumne

For information on properties in the counties other than those listed above, please call me for eligibility. You might be surprised at the small cities that are eligible like Galt, Lathrop, Patterson, Riverbank, Rancho Murietta, Auburn, Half Moon Bay and many more!!

USDA Loans are made to buyers of owner occupied primary residences only. Second homes and investment properties do not qualify. They are designed for moderate to low income families but the income limits are pretty generous as you can see by the table below.

Below are the income limits for our affected Counties --

2016 Income Limits

County 1-4 person family 5-8 person family
Alpine $94,600 $124,850
Amador $83,150 $109,750
Calaveras $80,700 $106,500
Siskiyou $75,650 $99,850
Tuolumne $76,350 $100,800
For other counties, give me a call or email me
 
30 year fixed rate
20 Year fixed
15 Year Fixed Rate
5/1 ARM
7/1 Arm

30 year fixed rate
This is a fixed rate mortgage fully amortized for 30 years.

Term: 30 years   Maximum Amount: $417,000

20 Year fixed
20 year fixed rate mortgage

Term: 20 years   Maximum Amount: $417,000

15 Year Fixed Rate
Fully amortizing mortgage with an interest rate fixed for 15 years

Term: 15 years   Maximum Amount: $417,000

5/1 ARM
fixed for 5 years, then adjusts annually after that. Based on LIBOR.

Term: 30 years   Maximum Amount: $417,000

7/1 Arm
Fixed for 7 years, then converts to a 1 year ARM.

Term: 30 years   Maximum Amount: $417,000
 
Index to the LIBOR with a 2.5% margin and adjustment caps of 2% per year, 5% lifetime caps.


Conforming, High Balance & Jumbo -- Conventional - FHA - VA - USDA - HARP - Manufactured Homes, 2nd home, condos, multi-unit properties, apartments, commercial - rehab loans and more. 209.753.7222

Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $484,350 for the contiguous states, District of Columbia, and Puerto Rico or below $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $453,100 with closing costs of $9,062. Jumbo Loans (whose maximum loan amount exceed $484,350 for the contiguous states, District of Columbia, and Puerto Rico or exceed $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $3,000,000 with closing costs of $60,000. Your actual APR may be different depending upon these factors.