Loan Programs

A popular loan type, conventional fixed rate loans feature a constant interest rate for the life of the life. Generally speaking, monthly payments remain constant. Traditionally borrowers are expected to provide a 20 percent down payment though this is not necessarily required. Contact us for details on down payment requirements. Available terms generally range from 10 years, 15 years, 30 years and 40 years.

FHA loans are private loans insured by the federal government. These loans are popular with borrowers who don’t have enough funds to pay a traditional 20 percent down payment because they only require 3.5 percent down to qualify. Those who choose these loans are required to pay mortgage insurance which slightly increases their monthly payments. Lenders who wish to offer these loans must be approved by the Department of Housing and Urban Development. Please contact us today to find out if a FHA loan is right for you.

Like a FHA loan, VA loans are private loans insured by the federal government. VA loans are only available to qualified military veterans and their families. These loans are only available to these individuals for their own primary residences and cannot exceed a $726,200 (2023) loan limit. For information on qualifying for this loan program please give us a call today.

Homeowners looking to decrease their interest rate may consider refinancing. A refinance calls for the homeowner to obtain another mortgage loan. Those funds are then used to pay off the original mortgage loan and the homeowner is then bound by the terms of the new mortgage. Depending on your situation a refinance loan could be a great option. Along with decreasing your interest rate, refinance loans can also help you switch from an Adjustable Rate Mortgage (ARM) to a Fixed Rate Mortgage (FRM), and in some cases reduce your loan term.

A jumbo loan, or non-conforming loan, usually means any home loan for amounts higher than $726,200 (2023 limit). Jumbo loans feature similar loan programs to fixed rate and adjustable rate programs. There are even FHA jumbo loans. The main difference between jumbo loans and conforming loans is the interest rate. Because jumbo loans are riskier for lenders they usually have higher rates. Learn more about jumbo loans by contacting us today.

Adjustable rate mortgages are loans where the interest rate is recalculated on a yearly basis depending on market values. As interest rates are adjusted so is the borrower’s monthly payment. While interest rates on ARM loans are generally lower than fixed rate loans they can eventually become higher. Various types of ARM loans include Hybrid ARMs such as 10/1 year, 7/1 year, 5/1 year and 3/1 year programs. Contact us for more information on adjustable rate mortgage loans.

Construction loans are used to finance the construction of a new structure. Whether you’re interested in building a brand new home for you and your family or you’re looking to construct a commercial property we can help craft a terrific lending solution. Each loan is as unique as the property you’re looking to construct. We look forward to your questions about construction loans. Please call us to find out more.

Reverse mortgage loans, also known as reverse equity loans, are only available to homeowners 65 or older. Like its name indicates, this program pays the homeowner either a one-time large payout or monthly installment. Once the loan term expires the house either becomes the property of the lender or the house can be sold to repay the debt. Reverse mortgage loans are great options for seniors looking to increase their monthly incomes. Contact us for more details.

Many homebuyers do not have the standard or consistent forms of income that are typically required by mortgage lenders. Yet, while they may not be able to qualify for conventional loans for various reasons, these buyers may still have enough income or assets to afford homeownership. In these situations, a non-qualified mortgage (non-QM) may be the solution.

What is a Non-QM loan?

In order reduce risk of loss after the mortgage meltdown in 2008, federal regulators tightened borrower requirements on mortgage loans that could be backed and bought by government agencies. Loans that meet all the new criteria are called “qualified mortgages.” Any loan that falls outside of those qualifications is called a “non-qualified mortgage” or non-QM. 

A non-QM is a mortgage loan that uses alternate methods to verify income to qualify borrowers. Even though these loans do not meet the standard requirements, they are not necessarily riskier loans. All borrowers are still required to prove their ability to repay the loan. Because there is more work required to process non-QM loans, the interest rates tend to be anywhere from 0.5% to 5% higher, depending on the loan terms.

Who Do Non-QM Loans Help?

Non-QM loans are often a good fit for those who have unique income situations:

• Self-employed borrowers
  Self-employed individuals often have irregular income that may come from several sources. They can often qualify for a non-QM loan using bank statements rather than tax returns.
• Borrowers with considerable assets
  Some buyers who can buy a home with cash prefer to take out a non-QM loan to finance their purchase in order to maintain a positive cash flow.
• Real estate investors
  Those who buy homes expressly to flip them for profit or turn them into rental properties often use non-QM loans. This is because of the quick turnaround or because the qualifying income will come from the projected rent.
• Foreign buyers
  Borrowers from other countries may not have a U.S. credit score to help them qualify for a traditional loan. As long as these foreign buyers have high income, substantial assets and down payments, they can usually obtain a non-QM loan.
• Buyers with blemished credit histories
  Non-QM loans can also be helpful for those with sufficient income but credit issues like prior bankruptcy, foreclosures or not enough credit history.

What are the Benefits of Non-QM Loans?

The benefits of Non-QM loans include the following:

• They provide mortgage funding for those with non-traditional income or financial situations.
• They allow for loans up to $2.5 million.
• Fixed-rate and adjustable-rate non-QM mortgages are available.
• Non-QM loans close just as quickly as conventional mortgages.
• They can be made to legal entities, like family trusts, instead of just individuals.
• No mortgage insurance is required on non-QM loans.
• They can be used to free up cash for investments.
• Non-QM cash-out refinance loans allow borrowers to take as much as $500,000 out in equity, depending on the situation.

What Documentation is Required for Non-QM Loans?

The documents required will vary greatly based on the financial situation of the applicant. In order to verify income, you can provide either personal and business tax returns or bank statements or investment account statements. In some cases, income verification is not even necessary. Credit scores and debt-to-income ratios will be factored in. Non-QM loans take a more holistic approach to an applicant’s financial situation though, rather than relying on a standard underwriting matrix.

What Types of Non-QM Loans Are Available?

Non-QM loans employ non-standard mortgage terms in order to help borrowers qualify. These include loan terms longer than 30 years, interest-only loans, higher debt ratios or alternate income verification methods. Non-QM loans can be used for primary residence mortgages, refinance loans, cash-out refinances, and investment property loans.

• Our Foreign National Loan program offers competitive interest rates.
• You can borrow up to $750,000 per property (minimum amount borrowed is $100,000).
• Multiple Fixed rate terms to choose from (10, 15, 20, 25 & 30).
• Multiple Adjustable rate terms available as well (5/1, 7/1, 10/1).
• You can use our Foreign National Loan Program to Purchase a New home or refinance your current home.
• Debt-to-income ratios are 50% ("Assets for income" option).
• No pre-payment penalties.
• We can finance up to 75% loan-to-value (if the home is worth $500,000 then we can lend up to $375,000).
• This program is eligible for multiple property types including: single-family homes, condos and townhouses.
• All Loans are manually underwritten.
• The Foreign National Loan Program is available to Self-employed foreign national borrowers as well.
• Some seller concessions are allowed (Max 6% up to 65% LTV)
• Escrows: Taxes and insurance escrows are required