What We Offer
Conventional conforming loans are those that are typically less than $766,550. They are underwritten to Fannie Mae and Freddie Mac guidelines. However, lenders can add what are called overlays to those guidelines, effectively making them more stringent. This loan type is available with a minimum down payment or equity position of 5%. The loan would require the borrower pays mortgage insurance with down payments of less than 20%. However, they can be structured with a 10% down payment/equity position and no mortgage insurance required.
Federal Housing Administration (FHA) loans are traditional government insured loans that also carry maximum loan amounts. These loan amounts vary per county and are based on a formula derived from past home sales. This loan type is available with a minimum down payment of 3.5% and requires the borrower pay mortgage insurance. A refinance loan would normally require a minimum 5% equity position. As with conventional loans, lenders can add overlays to FHA guidelines.
Veteran Administration (VA) loans are another government insured loan reserved for active duty and retired Veterans of our military/national guard. There are eligibility requirements set forth by the VA and applicants must demonstrate that they qualify for those. These loans are available with a zero down payment and require that the borrower pays the VA a funding fee in lieu of mortgage insurance. The fee is typically financed into the new loan amount. The loan amounts are determined by the Veterans’ eligibility. A common misunderstanding of VA loans is that they are guaranteed to be issued to the Veteran. They are fully credit and income underwritten to guidelines set forth by the administration. The guarantee is to the lender in the event of borrower default. The funding fee is waived for disabled Veterans.
Jumbo loans are normally made for loan amounts in excess of $766,550. They are normally underwritten to private investor guidelines and not Fannie Mae nor Freddie Mac. They are available with down payments or equity positions of at least 10%. They typically carry a higher interest rate than other loan types. However, Fannie Mae and Freddie Mac offer a High Balance loan limit to assist borrowers avoid these loans.
The High Balance loan limit will vary by county. These loans will have a slightly higher interest rate than a “conforming” loan amount although they are typically less than the jumbo pricing.
Land loans can be made for the purchase of a vacant lot either for a new home construction or for investment purposes. These loans are underwritten to local bank guidelines and can vary widely.
Construction loans can be made to construct a new home or remodel an existing home. As with lot loans, these loans are underwritten to local bank guidelines.
Home equity loans can be made for most any purpose and again vary by local bank guidelines. Normally, they come in the form of a home equity line of credit (HELOC) or a traditional loan type. The HELOC is similar to a credit card whereas you can borrow up to the established line amount, pay it back and borrow it again. They are typically provided with a variable interest rate although some do allow you to convert a portion or all of the balance to a fixed rate. The traditional loan is provided with all the proceeds disbursed at closing and normally carries a fixed rate and repayment term. Once the loan is repaid there is no automatic access to the monies again.