FHA Home Loans
An FHA loan provides a government-insured loan with flexible loan options. Less strict credit requirements and qualifications make this loan the easiest loan for buying a home or refinancing. Save money with an easy and fast FHA loan, qualifying is simple!
How FHA Home Loans Work
- Credit scores as low as 580 may qualify with 620 preferred
- Buy a home with as little as 3.5% down (primary home)
- Refinance up to 97.75% of your primary home’s value
- Includes upfront and monthly PMI (Private Mortgage Insurance)
Know the details about FHA Loan Limits, Debt Ratios, Closing Costs, Credit Issues and more reference the FHA website. https://www.fha.com/
Conventional Home Loans
A conventional loan is any mortgage that is not guaranteed or insured by the federal government. A conventional loan is generally referring to a mortgage loan that follows the guidelines of government sponsored enterprises like Fannie Mae or Freddie Mac. Conventional loans may be either “conforming” and “non-conforming”. Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Nonconforming loans don’t meet Fannie Mae or Freddie Mac guidelines, but they are also considered conventional.
How Conventional Home Loans Work
- Credit scores of 620 or higher preferred
- Buy a home with as little as 3% down (primary home) but 5-20% is typical
- Includes monthly PMI if down payment less than 20% but no upfront PMI.
Conventional Loans can be used to finance primary residences, second homes and investment property. Conventional Mortgage Guidelines allow you to purchase warrant able condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences.
Usually the maximum Conventional Mortgage amount will be 80% – 95% of the appraised value of the home or its selling price, whichever is lower.
VA Home Loan
Are you are a veteran, member of the military or military spouse? You may qualify for fast approval and a hassle-free loan even with less than perfect credit. Refinance up to 100% of your home or buy a new home with no down payment and never pay monthly insurance (PMI)!
VA Loan Highlights
- Buy a home with no money down (primary home)
- No monthly PMI (Private Mortgage Insurance)
- Refinance up to 100% of your primary home’s value
- VA loans are governed by the U.S. Department of Veterans Affairs
How VA Home Loans Work
You must currently be serving in the United States military or be an honorably discharged veteran to qualify. Surviving spouses and members of the Reserves or National Guard can also obtain VA Loans.
Certificate of Eligibility A Certificate of Eligibility (COE) serves as proof of your service and eligibility for a VA Loan. You must obtain a COE during the pre-qualification process.
Qualifying for a VA Mortgage VA Loans are not freebies – you still have to qualify just like with a traditional mortgage.
VA Loan Limits The VA Loan “Limit” in your area refers to the maximum loan amount the government will guarantee in that area. Typically this amount is $417,000 but it can be much higher in high costs areas.
Why Refinance Your Mortgage?
Mortgage refinancing can lower your monthly payments, which can add up to significant savings. With equity in your house you can take cash out of your to take care of other bills you may have. Knowing your options is important, we can help!
No Cash-out Refinance Mortgage
Being competitive in today’s mortgage market means offering your customers smart, affordable and convenient mortgage options designed to fit their changing needs. Offer your borrowers a no cash-out refinance mortgage to reduce their interest rate and monthly payment and consolidate higher-rate seconds into one, lower-rate mortgage.
A no cash-out refinance mortgage can lower a borrower’s monthly payment, and all related closing costs, financing costs and prepaids/escrows may be rolled into the new loan amount.
Cash-out Refinance Mortgage
Whether your borrowers are looking to receive cash out from the increased value of their home to use for debt consolidation, or for any other purpose.
Cash-out refinance mortgage offers flexibility and variety so you can meet a diverse range of borrower needs: obtaining cash for home improvements, reducing a rate and monthly payment, paying off a purchase money junior lien used for any purpose, or paying off a leasehold interest. Plus, all related closing costs, financing costs and prepaid items can be rolled into the new loan amount, further maximizing your borrower’s cash flow potential.
Down Payment Assistance Programs
Need help getting money for a down payment? From down payment assistance grants (free money!) to interest-free second mortgages and other special loan programs, options are available for home buyers to have mortgage costs paid for if they qualify.
Below are some Down Payment Assistance Programs with links to get more details.
USDA / RHS Home Loans
The United States Department of Agriculture (USDA) offers a loan program for rural borrowers who meet certain income requirements. The program is managed by the Rural Housing Service (RHS), which is part of the Department of Agriculture. This type of mortgage loan is offered to “rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing.” Income must be no higher than 115% of the adjusted area median income [AMI]. The AMI varies by county. See the link below for details.
Jumbo Home Loans
When a loan amount reaches a certain point, Jumbo and Super Jumbo Loans can offer high-end financing that a traditional loan can’t.
With a jumbo mortgage, you’ll get great rates for your big loan. With a choice between fixed or adjustable rates, our jumbo loans offer maximum flexibility for home financing for larger loans.
Jumbo vs. Conforming Loan
There is another distinction that needs to be made, and it’s based on the size of the loan. Depending on the amount you are trying to borrow, you might fall into either the jumbo or conforming category. Here’s the difference between these two mortgage types.
- A conforming loan is one that meets the underwriting guidelines of Fannie Mae or Freddie Mac, particularly where size is concerned. Fannie and Freddie are the two government-controlled corporations that purchase and sell mortgage-backed securities (MBS). Simply put, they buy loans from the lenders who generate them, and then sell them to investors via Wall Street. A conforming loan falls within their maximum size limits, and otherwise “conforms” to pre-established criteria.
- A jumbo loan, on the other hand, exceeds the conforming loan limits established by Fannie Mae and Freddie Mac. This type of mortgage represents a higher risk for the lender, mainly due to its size. As a result, jumbo borrowers typically must have excellent credit and larger down payments, when compared to conforming loans. Interest rates are generally higher with the jumbo products, as well.