Providing Reasonable Housing and Investment Loans

FHA is a great program for first-time home-buyers! A Federal Housing Administration (FHA) mortgage allows borrowers to finance homes with down payments as low as 3.5%. This option often suits those who may not have saved enough for a larger down payment and accept a lower credit-score than a traditional conventional mortgage would.

This type of loan is not insured or guaranteed by the federal government. Also called a conforming mortgage, this one adheres to guidelines set by the Fannie Mae and Freddie Mac home mortgage companies. Its rates can be either fixed or adjustable.

The Home Equity Conversion Mortgage, or HECM, is the Federal Housing Administration’s reverse mortgage program that enables you to withdraw some of the equity in your home. It can also be used to purchase a primary residence if you plan to use cash to pay for the difference between its proceeds and the sales plus closing costs.

Also called VA loans, Veterans Affairs loans are reserved for former military personnel and have no private mortgage insurance. To qualify for this type of loan, individuals must get a VA loan certificate and meet certain set qualifications. VA loans have a variety of benefits, some of which are:

✓ $0 down VA mortgages do not require money due at closing with loan limits up to $1 million in some areas.

✓ VA Loans have No Private Mortgage Insurance, or PMI, required on most conventional and Federal Housing Administration mortgages with less than 20% down. VA loans have funding fees depending on your eligibility.

✓ Lower payments with historically low-interest rates with no prepayment penalties.

✓ Sellers are allowed to pay all closing fees, allowing borrowers to purchase a home $0 out-of-pocket cost.

✓ Refinance up to 100% of the value of your home.

✓ Streamline refinance loans for veterans with existing VA loans with no appraisal, income, or asset verification.

An expanded loan, also known as a Non-QM loan, is an out-of-the-box alternative designed to be flexible. When other loans are not appealing enough for you, an expanded loan can bridge gaps. Several programs are available and have been tailored to meet the individual needs of different groups of borrowers. Non-QM loans have several benefits, including:

✓ Loan amounts from $100,000 to $3 million

✓ Leverage alternative income sources

✓ Flexible qualification requirements

✓ Nonwarrantable condominiums can qualify

✓ Interest-only financing available

✓ Bank statement options

✓ Self-employed borrowers who do not show sufficient income in their tax returns