Our large database of lenders gives us access to a variety of underwriting guidelines. We partnered up with a variety of banks and wholesale-only banks where we broker our loans to be able to offer even more competitive rates than if you walked into these same banks directly.
List of loan products available through our lenders:
Conventional loans boast great rates, lower costs, and home buying flexibility. They are the loan option of choice for about 60% of all mortgage applicants.
Conventional loans are also known as conforming loans, since they conform to a set of standards set by Fannie Mae and Freddie Mac.
The following are highlights of this program.
- You can use a conventional loan to buy a primary residence, second home, or rental property
- Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer many loan terms usually from 10 to 30 years
- Down payments as low as 3%
- No monthly mortgage insurance with a down payment of at least 20%
- Lower mortgage insurance costs than FHA
- Mortgage insurance is cancelable when home equity reaches 20%
Jumbo loans are nonconforming types of loans. That’s because Jumbo loans exceed conforming loan limits. Jumbo loans are most often used by long-time homeowners. Some additional characteristics of jumbo borrowers include:
- Lower debt to income (DTI) ratios
- Higher credit scores
- Liquid assets to cover 6 months of reserves
Adjustable- Rate Mortgage (ARM)
An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically.
VA Loans are for military veterans, service members and eligible spouses. The VA Home Loan Benefit makes it possible to buy a home with zero down. These mortgages are guaranteed (insured) by VA and carry very competitive interest rates. VA loans have the reputation of being the best deals in the mortgage market.
FHA purchase loans are low down payment types of loans. They only require 3.5% down which makes them very popular with first time home buyers. FHA guidelines also permit down payment gift funds from family members, employers, housing grants, churches or other charitable organizations. FHA loans require a one-time, upfront mortgage insurance premium (UFMIP) when the loan closes. After that, a smaller mortgage insurance premium (MIP) is added to the monthly mortgage payment. These two types of insurance comprise a tradeoff necessary to make the low down payment possible.)
Home Ready (Fannie Mae)
HomeReady is another low down (3%) loan from Fannie Mae, this time for low to moderate-income borrowers. There’s no first time home buyer restriction. However, income limits apply. To be eligible, applicants must take an online (or in-person where available) homeowner education course. The mortgage must be set at a fixed interest rate.
Home Possible + Home Possible Advantage (Freddie Mac)
Freddie Mac offers two versions of their low down (3% to 5%) mortgage products. Home Possible programs are not restricted for first time home buyers, but first time buyers must take an education course. Loan limits are capped at the regular conforming loan limit; no high cost area adjustments can be made.
Renovation and Repair Loans
Renovation loans are taken out by borrowers under two basic situations. The first scenario involves current home owners (refinance) and the second scenario covers home buyers (purchase). Renovation loans fund the purchase or refinance and simultaneously provide cash to carry out the rehab work.
In both scenarios, renovation loans are all-in-one transactions. They do not require a borrower to combine a first lien and a second mortgage or home equity line of credit (HELOC). Loan amounts are based on the estimated property value after renovation work is completed.
FHA 203k Renovation Loan
Types of FHA renovation loans include a Standard 203k and a Limited 203k. The Standard is for larger projects like rebuilding a home from the ground up. These projects exceed $35,000. For smaller repairs, upgrades and improvement, the Limited will provide up to $35,000. Work must be completed by HUD-approved contractors. This loan requirement is a little less attractive to DIY-ers. Money set aside for renovation work is held in a renovation escrow account and is released when repairs are completed.
HomeStyle Renovation Mortgage (Fannie Mae)
HomeStyle provides funds for purchase or refinance activity with accompanying funds for home improvement. Loan amounts can go up to 50% of the as-completed appraised value of the property. While approved contractors will handle most renovations, HomeStyle allows borrowers to perform up to 10% of the project’s as-completed value.
Freddie Mac Renovation Mortgage
Freddie Mac’s renovation product is very similar to Fannie’s HomeStyle program. One unique feature: the program allows funding for non owner-occupied properties (i.e., investments and second homes). For this reason, investors prefer it.