Conventional – Are any mortgages that are not a VA or FHA loan. Conventional Mortgages may be conforming or non-conforming.
Conforming – Any loan that conforms to the underwriting guidelines of Fannie Mae or Freddie Mac is called a “conforming loan”. Guidelines such as the maximum loan amount, down payment percentage, borrower and co-borrower credit, borrower and co-borrower income requirements, and appropriate property types.
Conforming loan limit for one unit: $ 417,000.
Non-Conforming – Any loan that doesn’t conform to the underwriting guidelines of Fannie Mae or Freddie Mac is called a “non-conforming loan”. Residential- Loans for primary and secondary residences. Fixed Rate- Fixed rate mortgages have an interest rate that is valid for the life of the loan. Fixed rate mortgages are available for 10, 15,20 and 30 year terms.
Adjustable– Adjustable rate mortgages available have a fixed interest rate for the start of the term and a floating rate thereafter. Once the initial period expires (typically 1,3,5 or 7 years depending on the program) the adjustment occurs either once every 6 months or once every year (depending on the program) and fluctuates following published financial indexes. An ARM that adjusts every 6 month will normally have a 1% cap (limit) per adjustment and a 6% cap (limit) over the life of the loan. Caps vary from mortgage program to mortgage program. Contact us for specifics. An ARM that adjusts every 1 year will normally have a 2% cap (limit) per adjustment and a 6% cap (limit) over the life of the loan. Caps vary from mortgage program to mortgage program. Contact us for specifics
FHA/VA – The Federal Housing Authority backs mortgage loans for people who don’t fit the traditional underwriting criteria for getting approved for a home of their own. People that benefit from these loans are first time home buyers, people who don’t have much credit history, and people who have had credit issues in the past but have everything back on track. The interest rates on FHA loans are comparable to conventional rates. FHA can lend up to 97% of the home value, and can be refinanced any time without a pre-payment penalty, and without having to qualify all over again. As long as you pay the mortgage on time, you can do a streamline refinance anytime interest rates fall. In many cases, in high interest rate environments, FHA loans are considered superior to conventional loan because they can be refinanced so easily when rates drop. FHA also allows gift funds from family members for the down payment, and also allows home sellers to pay for closing costs, so you don’t have to wipe out your bank account to get into the home of your dreams. Because FHA loans are designed to help an underserved segment of the population, there are FHA loan limits for each county reach up to $312,000. Call a loan officer today and see if you can take advantage of an FHA loan and what the loan limit is for your county!
FHA streamline loans – This program is for FHA homeowners to lower their interest rate with relatively low costs. The term “streamline” refers to the amount of documentation required, there are still costs involved in the transaction.
The loan requires:
- Must already have an FHA mortgage.
- The mortgage to be refinanced should be current (not delinquent).
- There finance is to result in a lowering of the borrower’s monthly principal and interest payments.
- No Cash may be taken out using the streamline refinance process
The Benefits of a FHA Streamline Refinance:
- Appraisal usually not required
- Very little paperwork
- No credit check, income verification, employee verification, or underwriting fees
- Easily increase or decrease the length of the term of your existing loan
- Take advantage of current low interest rates
- Little or no out-of-pocket costs
203K Streamline – This program offers borrowers the resources to rehabilitate a home that may be in need of repair, either the home that they currently live in, or that special fixer-upper opportunity, without the extra cost or details as found in the regular 203k. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.
203K Rehab Program– 203(k) Enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
JUMBO– These are available for borrowers purchasing or refinancing homes over $359,600 for 1 & 2 unit properties, and higher limits are available in Alaska and Hawaii, and for 3 & $ unit properties. Jumbo mortgages may have different underwriting requirements which vary from one loan program to another. Some options that are available for jumbo loans are: no income verification and no asset verification.
Commercial– Loans to finance commercial properties. For multi-family homes and apartment buildings, offices, industrial building, and retail development plans. Loans to Value typically up to 80%. We can also finance raw land depending on the property and situation.