Don't get burned by fly-by-night brokers! Talk to California lenders that specializes in local mortgage origination.
The current FHA interest rates are breaking records that make home financing in California even more attractive. With the new HARP 2.0, purchase and refinance mortgages are more appealing for borrowers who do not have enough equity to meet lending eligibility. Consider adding a second mortgage if you need quick cash for home renovation or bill consolidation. If you are turned down for an equity loan, consider a government loan from VA or FHA.
Borrowers in Southern California have been reporting struggles in their efforts to take out additional mortgages for cash. So many homeowners are underwater that most mortgage companies do not want to take chances on 2nd mortgages and credit lines. Read the article on Home Equity Loans in San Diego.
State of California at Risk to Go Bankrupt – Believe it or not, cities and states in the U.S. can go bankrupt. Just like a business or homeowner, states do default on loans and the ripple effect is immense. The housing market has suffered for over 6 years in Southern and Northern California and many banks are quietly discussing the fall-out if the Golden State dries up.
After all, home values in the state are just starting to rebound and if record low rates in California are any indication, the housing sector could be rebounding ---Read the LA Times article on Cities and Bankruptcy Risks.