Loan Type

Loan Types

Conventional Loans

A conventional loan is a home loan for individuals who have steady income, good credit and have funds available for a down payment. A conventional loan requires a minimum of 3% down payment. Our mortgage broker partners help buyers secure a conventional loan when purchasing property.

A conventional loan is not insured by the federal government (like USDA, FHA and VA loans) and can be the preferred route to home financing for many home buyers and those purchasing investment property. Pre-qualify for a Conventional Loan today by getting connected to one of our mortgage broker partners!

Applying for a Conventional Loan
Typically, a conventional loan requires that borrowers have 3-20% of the home's value as a down payment. Lenders who sell conventional loans review debt/income ratios and monthly housing costs. Also reviewed in the conventional loan application are credit scores, credit history and income over the past several years. Those who have gone through bankruptcies and foreclosures at least four years ago are eligible for a conventional loan, but must have excellent credit histories. Most loan programs review each applicant based on the Fannie Mae and Freddie Mac guidelines.

Typically, our mortgage broker partners will review the following items with you when applying for a conventional loan:
  • Your Employment (Is your income and employment steady?)
  • Down Payment (How much can you afford to put down?)
  • Credit History (Is your credit good, do you have late payments?)
  • In addition, we can discuss your options for mortgage insurance and setting up an escrow account, which will allow you to have your mortgage insurance, homeowners insurance and property taxes taken out as part of your monthly mortgage payment.

Learn about the Home Loan Process from Fannie Mae, and then get pre-approved for a conventional loan TODAY!

Conventional Loan Terms
Conventional loans are available in fixed-rate or adjustable-rate (ARM) loans and have a term of 15, 20 or 30 years. The shorter the term, the lower the rate. Those who are purchasing their first homes, an additional home or even investment property often turn to a conventional loan.

 The application process goes quicker than FHA loans or VA loans since the government isn't involved in the application process. Homeowners with conventional loans also find their equity builds up quicker since a larger down payment is needed.

FHA Loans

FHA loans allow you to purchase a home with a 3.5% down payment, or refinance a home up to 96.5% of the home's value. FHA loans are easier to qualify for, and offer several homeowners an easy way to secure financing. See if you qualify for an FHA loan today!
 
About FHA Loans
FHA loans originate from the Federal Housing Administration and are insured by HUD (US Dept. of Housing) so that lenders can offer more affordable mortgage rates. FHA loans require lower down payments and closing costs. There are even options for financing 100% of the loan, and several grant programs that provide FHA loan customers financing for the down payment.
FHA loans offer options to those who've undergone bankruptcy or foreclosure. They're available to first time home buyers, refinances and anyone who's purchasing property and doesn't already have an existing FHA loan. The guidelines for debt ratio and job qualifications are more lenient than a conventional loan.
 
Refinancing your Mortgage with an FHA Loan
You may refinance your home loan with an FHA loan if you don't currently have an existing FHA loan. Refinancing options include fixed, adjustable (ARM) and buy-down mortgage rates, although most buyers have a fixed-rate FHA loan. Refinancing with an FHA loan is allowable even if you're late on your current mortgage or facing foreclosure.
FHA loan applicants find that FHA loans do not have as strict of income guidelines nor credit history as conventional loans. FHA loans offer competitive rates for those in foreclosure or bankruptcy. There are also options for loan consolidation with FHA loans.
 
FHA Loan Qualifying
FHA loan requirements are more flexible than conventional loans and provide the easiest application. Below are the requirements for FHA loans:
  • Need two years of consistent employment - preferred by the same employer.
  • Income over the past two years is the same, or increasing. 
  • Credit guidelines vary; please ask for details.
  • Bankruptcies must be 2 years old; good credit since the bankruptcy
  • Foreclosures must be 3 years old; good credit since the foreclosure.
  • Mortgage payment of your new home must be around 30% of your gross income.
 
Streamline FHA Refinance

If you have an FHA loan that originated before June 2009, you may qualify for a streamline FHA refinance. This means that you can refinance your current FHA loan with a very simple process. Unlike the standard refi or loan application process, the Streamline FHA makes it easier. 

If you are currently over 4.5%, a new FHA program could save you THOUSANDS!

Here are some benefits of a Streamline FHA Loan:
  • Better loan terms
  • You do NOT need an appraisal on your home, even if you are upside down
  • You do NOT need to verify your income or employment
  • Your credit score will NOT be pulled

This program is easy to apply for and you can find out within minutes if you may apply for the FHA Streamline Loan. Take advantage of the lower interest rates and all of what this FHA program has offer.

VA Loans

We are proud to help our Service Members and Veterans achieve the American Dream of homeownership.

Home loans backed by the Department of Veterans Affairs (VA) provide affordable home financing options for eligible Service Members, Veterans and surviving spouses.

VA Loan Highlights
Since VA loans often require no down payment* with lower closing costs, you can help keep your savings secure. VA loans also feature:
  • No prepayment penalties
  • No private mortgage insurance (PMI)
  • 100% financing with full VA entitlement* 
  • Fixed- and adjustable-rate mortgages 
  • VA financing fees can be “rolled” into the loan amount
  • Variety of eligible property types, including town homes and VA-approved condos

*A down payment is required if the borrower does not have full VA entitlement, or if the loan amount is greater than $424,100 

VA Loan Eligibility
In order to be eligible for a VA loan, you must first obtain a valid Certificate of Eligibility (COE). Your COE is based on length of service or service commitment, duty status and character of service.

VA Loan Programs

Adjustable-Rate Mortgage
If you are currently serving in the military with a chance of relocating in the next few years, the flexibility of an adjustable-rate mortgage (ARM) could be the right option for you. ARMs offer lower introductory interest rates that can change after the initial fixed-rate period. Depending on market fluctuations after this initial fixed-rate period, your monthly payments could change due to rates increasing or decreasing.

Fixed-Rate Mortgage
Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. You can select a 30- or 15-year loan term. The main difference is the 15-year option has higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

Cash-Out Refinance
If you’re already a homeowner, a cash-out refinance may help you pay for major expenses like college tuition, debt or home improvements. This option allows you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. You can also refinance a non-VA loan into a VA loan with a cash-out refinance.

Interest Rate Reduction Refinance Loan
An interest rate reduction refinance loan (IRRRL) may help lower your interest rate and reduce your monthly payments by refinancing your existing VA loan. You can also refinance an adjustable-rate mortgage (ARM) into a fixed-rate mortgage with this option. However, you cannot receive cash from loan proceeds with an IRRRL.

USDA Loans

We can help you learn the requirements for USDA loans and determine your eligibility. USDA loans are loans issued by the government, and often issued to those in rural areas, small communities and some areas just outside major metropolitan areas.
 
What is a USDA Loan?
USDA home loans, also known as rural development loans, are loans issued by the US government. To help families who may not quality for conventional loans or have the same lending options as those in larger cities, the US government issues these loans through approved private lenders.

With flexible requirements, USDA loans feature:
  • 100% financing + required guarantee fee = 102% of the appraised value
  • No Down Payment
  • Low FICO score requirements
  • Low interest rates
  • Low closing costs
  • No Mortgage Insurance
  • Gift funds can be used for closing costs
  • 30-year, fixed-rate mortgage

A USDA loan is a great option for families in smaller communities trying to find a way to buy a house.
 
Who is eligible for a USDA Loan?
According to USDA, to be eligible for a USDA loan, you must:
  • be a US Citizen, a US Non Citizen National or have a qualified Alien status
  • be at least 18
  • not own another house in the local area
  • occupy the home as your primary residence
  • be unable to get conventional loan that requires a 20% down payment
 
USDA Loan Eligibility
Eligibility is based on the property size, location and condition along with income and other qualifying factors. Some of these requirements include:
  • Property must be located in a USDA designated rural area
  • Maximum loan limits vary based on location
  • Household members can have a total income of up to 115% of the medial income for the area
  • Household must be able to afford the mortgage payment, including property taxes, homeowners insurance and the annual guarantee fee payable on a monthly basis

Income Guidelines for USDA Home Loans
There are income guidelines for USDA loans that vary by the area in which you're applying for the loan. To learn the guidelines for your desired area, please contact TODAY and get connected to our mortgage broker partners!

Reverse Mortgage Loans

Reverse Mortgages or (Home Equity Conversion Mortgages HECMs) are a special home equity loan for homeowners of 62 years of age or older. 

These loans allow borrowers to borrow against the equity that they have built up over years of paying down the mortgage on their home to supplement their retirement income. The loan itself will have fees and closing cost involved as there is with any mortgage transaction. 

Also there is interest added to the loan balance each month, the loan balance grows over time, and funds may be disbursed via a lump sum single disbursement, in monthly payments, or as a line of credit. 

Borrowers generally do not have to pay back the loan while themselves or an eligible spouse live in the home; however, borrower must continue to pay taxes, insurance, utilities and to maintain the home in order to continue to occupy the home. "Non-borrowing" spouses may be eligible to continue living in the home after the borrower passes away; however, the non-borrowing spouse will stop receiving the money from the reverse mortgage after the borrower spouse passes away. The loan becomes due in full at the time the last borrower, co-borrower, or eligible spouse either passes away, sells the home, or moves out. 

Borrower's estate or heirs may pay off the reverse mortgage through the sale of the home or retain the home via a refinance (neither the borrower nor their heirs will have to pay back more than the home is worth). 

Reverse mortgage is not a risk free loan and should be considered carefully; for more information on reverse mortgage visit the Consumer Financial Protection Bureau website at www.consumerfinance.gov/askcfpb/233/reversemortgage.html
Share by: