Loan Programs

CONVENTIONAL

If you are looking for a home loan, considering a conventional loan is a great place to start!

Loan Program Details:

– Fannie Mae/Freddie Mac
– 3-5% down payment options available
– PMI (private mortgage insurance) required on <20% down loans
– No monthly mortgage insurance required on 5%+ down loans (other MI options)
– <10% down = 680+
– 10%+ down = credit scores 660+
– 20% down = credit scores 620+

FHA

FHA loans typically provide lower interest rates and lower down payment requirements, making it an attractive first time home buyer program for buyers with credit scores about 620.

Loan Program Details:

– Typical first time homebuyer loan
– Lower down payment required (3.5% minimum)
– Lower minimum cash to close
– Can do a no closing cost FHA loan
– 620 credit scores
– Debt to income thresholds are higher
– Up front mortgage insurance premiums (1.75%) financed
Example, $275,000 house = $4812.50 (one-time fee)
– Monthly MI premiums
Example, $275,000 house = $194.79/mo

VA

VA loans are reserved for veteran and active duty buyers that allows for no down payment and no monthly mortgage insurance.

Loan Program Details:

– No down payment
– All closing costs can be paid by the seller
– Flexible credit requirements
– No private mortgage insurance (PMI)
– VA streamline refinances available to lower payments when rates drop
– Low 30 and 15 year fixed rate loans comparable to conventional loans with 20% down
– Veterans can use their bonus entitlement to purchase additional homes

USDA

USDA loans are available for properties to be purchased in eligible rural areas. They do not require a down payment, have low monthly mortgage insurance, and may allow closing costs to be rolled into the loan.

JUMBO

Jumbo loans are available for loan amounts slightly above the conforming limit all the way up to $3,000,000. Various programs offer flexible terms to assist buyers in qualifying, like LTVs above 80% with no mortgage insurance.

DOWN PAYMENT ASSISTANCE

A variety of local and statewide affordable housing programs are available to low- to moderate-income buyers in need of either down payment or closing cost assistance.

FOREIGN NATIONAL

Offers financing for non-US citizens to purchase a second home or investment property in the United States.

ASSET DEPLETION

Buyers with non-traditional employment history and limited qualifying income can utilize their assets to use large reserves as an income source to qualify with appropriate documentation.

BANK STATEMENT

Self-employed buyers with large write-offs resulting in limited qualifying income on an agency loan can provide up to 24 months’ worth of bank statements to demonstrate regular deposits as income to qualify.

HOMEREADY / HOMEPOSSIBLE

Conventional loans up to a 97% LTV with lower mortgage insurance premiums and loan-level price adjustment caps resulting in better pricing are available to buyers that attend homebuyer education and meet income limit requirements.

NON-WARRANTABLE CONDOS

Condos that don’t meet agency requirements due to investor concentration, individual owner concentration, HOA litigation or other reasons may be eligible with a full review of the condo project.

MORTGAGE CREDIT CERTIFICATES

A federal tax credit is available to low- to moderate-income first-time homebuyers and may be used to improve the debt-to-income ratio or VA residual income calculation, provided the buyer has a documented tax liability.