Alternate Financing

LOAN OPTIONS For borrowers who are eligible, there are additional choices available for securing a mortgage.

There are two loan programs, both backed by government agencies, that are sorely underutilized by their constituency.

First is a loan for veterans that is backed by the U.S. Department of Veterans Affairs, known as the VA loan. The VA loan allows qualifying veterans to borrow up to 100 percent of the value of a home, and in Santa Clara County that means up to $625,500 with no down payment. The VA loan also has unique features such as lower than market rates, fee waivers and no monthly mortgage insurance.

The second loan is backed by the U.S. Department of Agriculture. The USDA loan is geographic in nature, as well as income-restricted. USDA-eligible homes in our market are most often found in San Benito County, eastern Monterey County and parts of Santa Cruz County.

The USDA loan also allows up to 100 percent financing, competitive rates and a very low monthly mortgage insurance premium.

For borrowers who are eligible, these are excellent alternative financing vehicles that stack up nicely against any first-time homebuyer programs, and could provide home financing to those who thought they couldn’t buy in our market.

Jayson Stebbins is a 23-year veteran of the mortgage banking industry. He grew up in Morgan Hill and currently lives in Gilroy. He is the local branch manager of Guild Mortgage. Contact Jayson and his team at (408) 825-0220 or at

Leave your comments