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Available Loan Programs

posted Jan 25, 2013, 10:23 PM by Massey Kouhssari

Conventional Conforming

Standard Fannie Mae and Freddie Mac loans up to a maximum loan amount of $417,000. Programs are available up to 95% loan to value and are available for cash out refinance, rate and term refinance, and purchases. Income, assets, credit and equity are all looked by the underwriters when approving you for a conventional conforming loan.

Conforming Jumbo

Conforming jumbos area a mix between jumbo loans and conforming loans. They offer lower rates than jumbos, but not as low as conforming loans. Each county in the US has its own maximum loan limit based on the average home price in that county. The maximum loan amount for high end counties is currently.

Jumbo

Jumbo loans are loan amounts that are above the conforming limits set by Freddie Mac and Fannie Mae. Since these loans are not being purchased by Freddie Mac or Fannie Mae they are funded by portfolio lenders which hold their own loans instead of selling them to the government agencies. Since these lenders are taking on the risk of default themselves jumbo rates are slightly higher than conforming rates.

Stated Income

Stated Income loans are for borrowers who have good credit but can’t qualify due to not being able to prove their income by traditional means. We currently have stated programs available for both conforming and jumbo loan amounts.

FHA

Federal Housing Administration loans are insured by the Department of Housing and Urban Development and protect the lender against part of their losses in case of a default. Since FHA loans are insured you can borrow up to 96.5% loan to value on rate and term refinances and purchases and up to 85% on cash out refinances.

VA

Veteran administration loans are insured by the Department of Veterans Affairs and protect the lender against losses in case of a default. Since the lenders are insured against losses you can borrow 100% of the value of your property. In order to qualify for a VA loan you need to obtain certificate of eligibility from the Department of Veterans Affairs.

HARP

Home Affordable Refinance Program(HARP) is a government sponsored program for borrowers who currently have a loan that is owned by Freddie Mac or Fannie Mae. The program is designed to help borrowers refinance into a lower rate who normally could not qualify due to a too high loan to value. Also HARP borrowers can take advantage of refinancing at high loan to values without being hit with mortgage insurance as long as their current loan does not have it.

Reverse Mortgage

Reverse mortgages are designed for seniors over the age of 62. Instead of making a monthly payment a borrower can draw on their equity and receive money every month from the lender. Income and credit is not as important on a reverse mortgage since you don’t have to make payments. In order to qualify for a reverse mortgage you need to meet the age requirement and have substantial equity in your home.

Hard Money

Hard money loans or private money loans are loans made by private investors and are mainly based on the equity of the property. Borrowers seeking hard money loans are usually credit challenged and cannot qualify for any other type of financing. Hard money loans are usually made at a loan to value of 70% or less because of the increased risk to the lender. Also the rates and fees on a hard money loan are higher than on other types of financing because of the higher risk of default by the borrower.

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