MORTGAGE LOAN PROGRAMS
CONVENTIONAL LOANS
These are the most common loan type of mortgage. These loans are mainly sponsored by Fannie Mae, and Freddie Mac. They tend to offer high interest rates than those of government-backed mortgage, such as FHA loans. However, they do not require to have a mortgage insurance (MI) if the Loan-to-Value (LTV) is 80% or less. Also, they do offer with less down payment as little as 3%.
GENERAL GUIDELINES
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Minimum 620 FICO score.
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Primary, second homes, and investment properties.
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Single-family residence, Condos, PUD's, Manufactured homes.
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High Balance loan amounts available.
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1 or 2 recent paystubs.
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1 or 2 recent years of W2's or tax returns.
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1 or 2 recent asset statements.
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Gift funds eligible for entire down payment.
FHA LOANS
These loans are government-backed and insured by the Federal Housing Administration. They make it easier for most borrowers to qualify, even those with questionable credit history and low credit score. They allow borrowers to finance homes with down payments as low as 3.5%. They offer low interests because FHA loans tend to have lower risk to lender. All FHA loans require to have mortgage insurance.
GENERAL GUIDELINES
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3.5 percent down payment.
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Minimum 550 FICO score. (No FICO score also available).
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Single-family residence, Condos, PUDs, Manufactured homes.
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Primary residence.
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2 recent paystubs.
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2 years of W2's or tax returns.
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2 recent asset statements.
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Gift funds eligible.
VA LOANS
VA loans helps Veterans, service members, and their survivors to buy, or refinance a home. VA loans may offer better terms than with traditional loans, such as no down payment, no mortgage insurance, reduced funds fees, and less perfect score. Borrower must be a Veteran with eligibility documented with a Certificate of Eligiblity (COE).
GENERAL GUIDELINES
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0 percent down payment.
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Minimum 580 FICO score.
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Purchase and cash-out refinance.
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Single-family residence, Condos, PUDs, Manufactured homes.
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Primary residence.
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2 recent paystubs.
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2 years of W2's or tax returns.
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2 recent asset statements.
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Gift funds eligible for the entire down payment.
USDA LOANS
USDA loans are guaranteed by the USDA Rural Development Guaranteed Housing Loan Program. Most USDA loans are granted directly to qualified borrowers with incomes below a certain limit, and a home in a neighborhood or area zoned rural. They offer no down payment option, their interest rates are lower comparing with conventional loans, and there is no private mortgage insurance required.
GENERAL GUIDELINES
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3.5 percent down payment available.
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Minimum 620 FICO score.
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No cash reserves required.
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Single-family residence, Condos, PUDs, Manufactured Homes.
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2 recent paystubs.
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2 years of W2's or tax returns.
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2 recent asset statements.
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Gift funds eligible for the entire down payment.
JUMBO LOANS
Jumbo loans are also known as non-conforming mortgage. A jumbo loan can be used when a loan amount is greater than the conforming loan limit in your area. These loan are not guaranteed by Fannie Mae and Freddie Mac, that means they are considered riskier for lenders. Therefore, the criteria for getting a jumbo loan are stricter. However, these loans allow borrowers to purchase or finance more expensive properties.
GENERAL GUIDELINES
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Minimum 680 FICO score.
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Maximum 90% Combined Loan-to-Value (CLTV).
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Maximum 45% Debt-to-Income (DTI) ratio.
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2 recent paytubs.
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2 recent years of W2's or tax returns plus current P&L statements and balance sheets.
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2 recent asset statements.
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Cash reserves required.
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Single-Family Residences, Condos, PUDs.
HELOC (Standalone Transaction)
Home Equity Line of Credit (HELOC) is a line of credit secured by your home that gives you a revolving credit line to use for large expenses, such as home improvements, high-interest credit card debts, medical expenses, etc. Much like a credit card, you draw on the credit line, pay it off and reuse it during the initial draw period. This period lasts up to 10 years, and you pay interest only on the amount you withdraw.
GENERAL GUIDELINES
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Minimum 640 FICO score.
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Maximum 85% Combined Loan-to-Value (CLTV).
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Maximum 50% Debt-to-Income (DTI) ratio.
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2 recent paytubs.
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2 recent years of W2's or tax returns plus current P&L statements and balance sheets.
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2 recent asset statements.
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No Cash reserves required.
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Single-Family Residences, Condos, PUDs.
NON-QM LOANS
Non-QM mortgages do not mean loans for those with damaged or non-existent credit, instead these loans are designed to cater borrowers whose loan application does not fit the traditional, Qualified Mortgage (QM) guidelines, such as exceeding DTI threshold of 43%, limited or alternative documentation, Interest-Only loans, and extending loan term to 40 years. Non-QM mortgages typically have higher fees and APRs than QM loans because they are considered to be a higher risk for lender. Non-QM mortgages are:
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No-Doc / Bank Statement loans.
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Asset Depletion loans.
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Reverse Mortgage loans.
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Foreign Nation loans.
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ITIN loans.
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Non-Warrantable Condos.
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Hard Money.
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Fix and Flip.
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Negative Amortization.
DSCR LOANS
Debt Service Coverage Ratio (DSCR) loan is a mortgage catering real estate investors. It doesn't involve traditional income verification. If the property generates a sufficient Net Operation Income (NOI) to cover the debt, DSCR will allow you to purchase or refinance the property. In addition, you will also need good credit and a high down payment. This loan doesn't require your personal income, and it has less paperwork and fewer restrictions.
GENERAL GUIDELINES
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Minimum 620 FICO score.
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Maximum loan amount up to $3 million.
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Investment properties.
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2-4 Units, Condos, Condotels, Agricultural, Mixed-Use, Co-op, Rural.
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DSCR => 1.00 - Purchase: 75% LTV - Refinance: 70% LTV.
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DSCR < 1.00 - Purchase: 70% LTV - Refinance: 65% LTV.
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AirBNB rent is allowed with 12-month rental history.
