Loan Programs

4082507 s - Programs
 

Below are Popular Residential Loan Programs

Conventional / Conforming 

  • Agency Fixed Rate & ARM’s – FNMA & FHLMC
  • Agency NO MI – FNMA & FHLMC
  • Agency High Balance* – FNMA & FHLMC
    *maximum loan amounts based on county limits established by the Agencies:  https://entp.hud.gov/idapp/html/hicostlook.cfm

Conventional loans are the most popular programs available. The housing market has stabilized, and lenders are signalling they are opening up from the very strict guidelines of the recent past. Conventional lending is now being done with common-sense underwriting guidelines.

Jumbo & High Balance

  • Purchases & R/T refi’s up to $1,500,000 @ 90% LTV/CLTV
  • Credit scores as low as 620 FICO’s
  • DTI’s allowed up to 43%
  • Loan amounts up to $10,000,000
  • Refinances allow up to $750,000 cash-out

Jumbo loans are becoming more common due to the increase in home prices over recent years. Technically speaking, a Jumbo loan is a non-conforming loan.  That is, the loan amounts are too high to fit into Fannie Mae, Freddie Mac, or Ginnie Mae loan specifications. This means that Jumbo lenders typically write their own guidelines or portfolio them to fit their own lending niche.

FHA

Most people have heard of the FHA loan, but don’t really understand what it is all about. FHA is still the go-to program for borrowers with lower credit scores or little credit history.

FHA loan programs do not hit the interest rate for low credit scores such as Conventional loans. A credit score below 680 on a conventional loan typically has overlays and price adjustments. At a certain point the FHA loan may becomes a much better option.  With FHA, borrowers can get a much lower interest rate and better deal with a lower credit score. Generally speaking, if a borrower’s credit score is between 580 and 660, the FHA loan may be the way to go.

VA

  • VA Standard Balance (100% LTV’s up to $715,000)
  • VA High Balance (90% LTV up to $1,500,000)
  • VA IRRRL’s – Standard & High Balance

VA loans have excellent terms up to higher LTV’s with NO MI, but are different than Conventional or FHA loans. The appraisal process is a little different, the documentation required is a little different, and the VA underwriters are looking at the files on how the deal can benefit the veteran. Do not let someone steer you away from a VA loan if you are VA eligible. Because the VA loan has its own special characteristics, it requires a certain expertise and experience from your lender. I have the expertise, and look forward to speaking with you about your next VA loan.

USDA

  • No Down Payment needed (100% LTV)
  • Large acreage allowed
  • Rural areas only

Non-QM

  • Bank Statement Income Qualifying allowed
  • Recent Derogatory Credit Events allowed
  • Loan amounts up to $10,000,000

Renovation

  • FHA 203(k) – Standard & Limited
  • FNMA HomeStyle Renovation
  • VA Renovation
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