Conforming Loan is a mortgage loan that conforms to Fannie Mae and Freddie Mac guidelines. The size of the loan is generally limited to $453,100 for a single family home or condo; however, higher loan limits apply to 2-4 units. A 30-years fixed mortgage is the most popular mortgage available—ideal for budget minded borrowers. The monthly payment includes the principal and interest and is calculated to pay off the loan at the end of your term.
High Balance Loans
High Balance Loans exceed the conforming loan limit and is generally limited to $679,650 for a single family home or condo; however, higher loan limits apply to 2-4 units. This fixed- and adjustable-rate product accommodates borrowers that are financing properties in areas that are published to be in a high-cost area.
Jumbo Loans exceed the conforming loan limit of $453,100. This fixed-rate mortgage product allows for purchase of homes priced between $525,000 and $5 million. The adjustable-rate mortgage product (ARM) allows for balances ranging from $453,100 to $5 million. Jumbo products require a minimum down payment of 20%.
Portfolio Loans are flexible programs for non-traditional loan scenarios. This includes borrowers with entity vesting – LLC’s, Trust, Partnerships & Sub S Corporations for the flexibility of structuring or protecting your assets. Portfolio lending uses expanded guidelines and is available to foreign nationals. Pledged assets can be used to qualify borrower with complex investment portfolios for up to 90% financing. Eligible assets include stocks, bonds, mutual funds, CD’s, Money Market, etc. Trading is allowed in pledged asset account. Jumbo ARM’s and Interest-Only options are available.
Bank Statements Loans
Bank Statements Loans are designed for borrowers with non-traditional income and lending needs, such as self-employed borrowers and foreign nationals. Self-employed borrowers qualify using bank statements for the most recent 12 months’ period. 100 % funds from a personal account, or 50% funds from a business account are used to qualify at 43% DTI. One borrower must be self-employed and may have a W-2 co-borrower.
Asset Qualification Loans
Asset Qualification Loans means the borrowers are qualified based on verified liquid assets. This includes borrowers with non-traditional income, such as self-employed borrowers and foreign nationals because employment and income are not required to be disclosed on the mortgage loan application. Upon meeting fund seasoning from an approved bank, no domestic seasoning is required. Perfect for high net worth borrowers and foreign nationals.
Stated Income Loans
Stated Income Loan is a mortgage where the lender does not verify the borrower’s income by looking at their pay stubs, W-2 (employee income) forms, income tax returns, or other records. Instead, borrowers are simply asked to state their income. To minimize the risk of default the lender requires the borrower(s) to put down 40%, or refinance the asset to 60% Loan-to-Value.
Blanket Loans are used to fund acquisition and refinance of multiple properties under one loan. Fixed rate financing is available up to 75% loan-to-value and interest only financing to 60% LTV. In addition, the properties must collectively meet a minimum debt coverage ratio for cash flow requirements. Blanket loans are available as non-recourse meaning there is no personal income verification – lending decisions are based strictly on the cash flow generated from the properties.
FHA Loans are ideal for those with less-than-optimal credit, little-to-no formal credit history, or limited cash for a down payment. Low credit scores may not prevent you from qualifying; however, higher scores could net you lower interest rates. Fixed-rate periods range from 10 to 30 years. New purchase mortgages allow for 96.5% maximum loan-to-value plus the amount of the financed mortgage insurance premium.
Home Equity Loans
Home Equity Loans offer flexibility to easily access available funds anytime within the first 5 years. Easily finance any purchase, consolidate debt, or fund home improvements. There is no prepayment penalty, or early closure penalty. Easily qualify by stating your income and verifying 60 months PITIA (Principal, Interest, Taxes, Insurance & HOA) based on loan amount amortized over 15 years. 42 of 60 months PITIA may come from equities; 18 months PITIA must be verified.
Interest Only Loans
Interest Only Loan is one in which the borrower has the option to pay only the interest on the principal amount borrowed for a predetermined period of time. This interest-only payment term is between 3 and 10 years. After the term is over, the payment converts to a principal and interest payment that is fully amortized over the remaining term of the mortgage.
Construction Loans are recourse in nature. The bank examines the equity in the land, the construction budget and the financial strength of the borrower to issue credit approval. A minimum net worth equal to the loan amount, good credit, 10% liquidity, and a solid builder’s resume is key. Rates range depending on the financial strength of the sponsor, or borrowing entity, experience, equity, liquidity and LTV/LTC. A fund control company is assigned to allocate and distribute the funds according to the approved budget by the bank. The assigned fund control company inspects completed work prior to issuing payment to the owner or builder.