Almost all the mortgage lending in Yuba-Sutter are for fixed-rate mortgages with terms of between 10 to 30 years. Many borrowers find that a 30-year fixed term mortgage suits them perfectly and this is the mortgage of choice for most California homeowners. 

Shorter-term fixed-rate mortgages, usually of 15 years, can save you money on interest payments as you’re paying the loan over less time. However, they do increase your monthly mortgage repayments and the shorter the loan duration is, the larger they will become.

ARMs have lower interest rates at the start than fixed-rate mortgages which means that, so long as interest rates don’t go up during the mortgage term, you’ll pay less each month. However, as interest rates can vary, depending on the economic climate at the time, an ARM is typically better if you’re only planning to stay in a home for a few years.

FHA loans are becoming a very popular option. They only require a 3.5% downpayment and they’re available to buyers with less-than-perfect credit scores. In some cases, FICO scores as low as 620 have been accepted. Gifts from family members (related by blood or marriage) are permitted on FHA loans too and this is great if you’re a first-time buyer relying on financial assistance from relatives to get started.

If you’re putting down less than 80% of the purchase price, the lender will require you to pay a mortgage insurance premium (MIP). Also, the criteria for a California FHA state that you can’t have owned or had an interest in a property in the three years before applying.

A loan from the United States Department of Agriculture (USDA) doesn’t require a down payment and they don’t set a minimum credit score for borrowers either. However, they will still look at your credit history, even if it’s not traditional credit like paying utility bills, and buyers who get a loan need to show that they can pay it back.

As with other government-backed loans, USDA loans require an initial payment at the time of closing and there’s a mortgage insurance fee if the loan-to-value (LTV) ratio is more than 80%. This fee will be included in the repayments.

In California, if you’re 62 or over you can use a reverse mortgage to release equity from your home while you’re still living there. There is no risk of eviction with this kind of loan as it isn’t repaid until the borrower dies or moves out.

Reverse mortgages can be great for helping senior citizens pay for things like health care or home improvements. The equity raised can be paid in a lump sum or overtime in regular amounts.