First Time Homebuyer

First- time homebuyer loans usually consist of an FHA or conventional 30- year fixed loan, with each having their advantages and disadvantages. The standard 3.5% down-payment FHA loan, for example, allows a higher debt- to- income ratio and lower credit scores than a conventional loan, so more borrowers can qualify for it. However, the MIP (Mortgage Insurance Premium) is not cancelable on the FHA loan, whereas on a 3-5% down-payment conventional loan the PMI (Private Mortgage Insurance) is, once the loan to value ratio reaches 78%. Of course, loan program selection will depend on your individual financial situation so feel free to call or email us anytime. We’ll be happy to help you.

Conventional (with Interest-Only Programs)

Conventional loans are mortgages backed by Fannie Mae or Freddie Mac and not insured by the Federal Housing Administration or guaranteed by the Veterans Administration. They are fixed or variable rate loans insured by private mortgage insurers at loan to values of 80%, or more, and are limited to the maximum conventional loan amount allowed by the Federal Housing Finance Agency (FHFA) Loan Limits There are many types of conventional loans including first-time homebuyer, renovation, move-up buyer loans, and refinance loans.

Government FHA/VA/RD

FHA government loans are those backed (Insured) by the Federal Housing Administration.

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA), and offers the veteran 100% financing with no down payment, and reduced closing costs.

The Rural Development Loan (RD) is a mortgage loan backed by the USDA, and is designed to offer mortgage financing to rural areas.

Jumbo

Jumbo, or non- conforming portfolio products are mortgage loans that have higher loan amounts than the standard conventional loan limit. Loan Limits

Non-Qualified Mortgage

A Non-Qualified Mortgage is any home loan that doesn't comply with the Consumer Financial Protection Bureau's (CFPB) existing rules on Qualified Mortgage. A Qualified Mortgage (QM) is a home mortgage loan that meets the standards set forth by the Federal government. Loans such as Conventional and FHA are Qualified Mortgages. These loans are designed for those who don’t meet all the criteria of a Qualified Mortgage, but are good still candidates for a home loan.

Renovation Loans

Renovation Loans are used to renovate your home upon purchase or refinance, with all as to be completed renovation repair costs rolled into the mortgage. FHA Renovation Loans include the Limited 203 (K) Loan which is limited to $35,000, and the Standard 203 (K) Loan, which allows a much higher loan amount depending on what county the property is located. FHA Mortgage Limits. Fannie Mae also offers a Conventional Renovation Loan called the Homestyle Renovation Mortgage. These loans are very useful especially for first-time homebuyers who often have limited funds to pay for a renovation out of pocket after closing on a house. With a renovation loan, the costs of the renovation are included in the mortgage financing upon purchase of the home.

Second Mortgage

Second mortgages are similar to HELOC’s but are not variable rate and are fixed. They are also used with a home purchase unlike a HELOC.

One Close Construction Loans

One Close Construction Loans are used for those who have purchased a building lot or perhaps are working with a builder who does not build spec homes. These loans fund the construction of the house via construction draws, and then close as a permanent end loan when the house is completed.