FHA (Standard)

FHA loans are insured by the Federal Housing Administration and are most popular for first-time-buyers and buyers with less than ideal credit (scores 500-679).

Pros:

• Down payments as low as 3.5%
• Relaxed qualification guidelines, including higher debt ratios and shorter waiting periods after a bankruptcy or foreclosure compared to Conventional loans
• Can be used to buy owner-occupied 2, 3 or 4 unit residence w/ 3.5% down!

Cons:

• Mortgage insurance required for the life of the loan in most cases
• FHA charges an upfront MIP fee that is added to your loan of 1.75%
• FHA rules regarding the condition of the home can often mean repairs are required which can hinder purchase transactions or refinances

Typically ideal for:

• First-time buyers seeking low down payment and flexible qualifying guidelines
• Buyers w/ imperfect credit (lower scores, past BK's or foreclosures)

Conventional

Conventional loans are home loans that are not Federally insured and qualifying can be a bit stricter than government loans but they can offer options that fit more properties and more buyers. They have less red tape as far as the property itself but usually require higher credit scores.

Pros:

• Down payments as low as 3-5%
• If you put less than 20% down, mortgage insurance will eventually fall off; no mortgage insurance for 20% down; no funding fees or upfront MIP fees like FHA.
• More flexible on properties needing repairs
• Can offer better long-term savings than most other options if your credit is good to great

Cons:

• Require credit scores of 640+ by most lending channels; scores below 700 usually mean higher rates than FHA
• Harder to qualify than FHA or VA for buyers w/ recent housing events like Bankruptcies, Foreclosures, Short-sales, Deed-in-Lieus

Typically ideal for:

• Buyers with credit scores 680+
• Buyers putting more than 5% down; especially for those putting 20% down
  

VA (Veteran Affairs)

If you are a veteran or currently active duty (or are Reserves/National Guard) in the U.S. military, you likely qualify for a VA home loan. Without question, the VA home loan is one of the best products out there and allows servicemen and women to purchase a residence w/ ZERO down payment, great rates and flexible qualifying guidelines.

Pros:

• ZERO down payment required
• Great rates
• Flexible qualifying guidelines, even w/ low credit scores and high DTI
• NO mortgage insurance
• Veterans w/ 20%+ disability have their VA funding fee waived

Cons:

• Sellers can often view VA through the same lens of FHA and think VA loans close slower and less consistently (EVEN THOUGH THIS IS FALSE AND VA LOANS TYPICALLY CLOSE FASTER); a good lender will sell your offer well!
• Qualifying borrowers typically have a VA funding fee unless they receive at least 20% VA disability and are exempt
• Can only be used for primary residence

Typically best for:

• Veterans and active military
• Spouses of deceased qualifying veteran
  

USDA - Single Family Housing Guaranteed

The USDA home loan is one of the best kept secrets in the home loan market for those seeking to buy in "rural" America. However, it's worth using the map tool to identify areas that might qualify as some qualifying areas are not actually that rural! The program is designed by the U.S. Dept. of Agriculture to assist lower to middle income earners purchase homes in rural or underserved areas. The zero down payment is great but qualification is restricted by area and income limits so this may or may not be an option for you based on your situation.

Pros:

• ZERO down payment required
• Great rates
• NO mortgage insurance; just an annual USDA fee included in your monthly payment
• Some of closing costs can sometimes be financed

Cons:

• Restricted by to rural areas - check here
• Restricted by income - check here
• Stricter qualifying guidelines as far as housing and debt-to-income ratios.
• Minimum score is 660; guidelines relax when scores are 680+.

Typically best for:

• Low to middle income earners; larger family size helps qualifying as well
• Buyers looking in rural or low population density areas

BANK STATEMENT LOANS

If you're self-employed and write off a lot of expenses, this can mean a serious problem for mortgage qualification: showing little to no income. A bank statement loan allows us to take 12 or 24 months of bank statements to assess the true cash-flow of the business and determine a qualifying income that can open the home-buying doors you need.

ITIN MORTGAGES

just because you or a loved one is not a U.S. Citizen, does not mean that you cannot qualify for a mortgage. Have an ITIN? Let's have a conversation!

PORTFOLIO LOANS

Unique loan options for your unique needs:

• Loans up to $2.5 million, Minimum loan of $125,000
• One year seasoning for foreclosure, short sale or deed-in-lieu
• Two years seasoning for bankruptcy
• Purchase and cash-out or rate-term refinance
• Owner-occupied, second homes, and investment properties
• Up to 50% DTI
• Gift funds allowed
• 40 year fixed interest only available
• Non-warrantable condos allowed
• Loan amounts greater than or equal to $1,500,000, a borrower paid second appraisal must be obtained

...AND MANY MORE

One of the biggest advantages of working with an independent lender and broker is that we are not constrained by the overlays and bureaucracy that often comes with large institutional lenders and banks. Furthermore, if we don't have the product you need, we can always add it to our toolbelt.

Let's talk about your needs!