These are your standard cookie cutter loans with the lowest rate and fees. If you have great credit, good income, and equity or a large down payment, a conventional loan is the way to go.
FHA loans have lower credit score requirements and higher debt to income ratios. So if you’ve missed a credit card payment or two or want to buy but have a small down payment, the FHA loan is the right loan for you. The downside with FHA loan is you will pay mortgage insurance up front + a small additional monthly fee. However, FHA offers lower rates than conventional loans so in most cases, the payment is not much higher than a conventional loan.
Offered to our Military Veterans and their families. If you are look to buy a home or refinance, the VA will lend up to 100% of the home’s value. No down payment required. We always offer additional benefits to our VA clients like waiving the appraisal fee as a thank you for their service.
Each county has conventional/jumbo loan limits. If the loan you are trying to get is over a certain limit, it is considered a Jumbo Loan. The different between a Jumbo Loan and a conventional loan is a slight increase in interest rate and larger equity requirements.
Stands for Alternative which means unconventional financing. These loans are designed for borrowers who have special circumstances.
Designed for business owners who do not qualify for traditional financing because they have too many write offs on their tax returns. Our lender will not look at your tax returns whatsoever. They will calculate your income based on the deposits in your business or personal bank account.
Designed for someone who have a very large savings or retirement account but no income. For example, if you have $500,000 in an IRA (or any other retirement account), the bank will give you a loan based on those assets. That retirement will NOT be used as collateral, just a means for qualifying.
Lenders are also looking to help borrowers finance their first investment property and will use the projected rent as income. A larger down payment may be required but we can help get you into your first investment property.
These loans are ideal if you need short term financing. Rates are higher but no income and bad credit is OK. Most people can qualify for a hard money loan.