| Program (click for more info) | Benefits | Drawbacks |
| Conventional | - lowest rates available
- very fast underwriting (quicker closings)
- automated underwriting provides instant approvals
- LTV's up to 95% on purchase and refinance for owner occupied & second homes
- LTV's up to 90% for non owner occupied homes
- Stated income available with reduced LTV's for 680+ credit scores
| - 680+ required for over 85% LTV
- Mortgage Insurance is normally higher than government loan programs
- Automated Underwriting is only options. More restrictive approval guidelines
|
| | - 97% LTV on purchase or no cash out refinance
- 95% LTV for cash out refinance
- Very low mortgage insurnace coverage
- 580+ credit for automated approvals
- Manual Underwriting - less restrictive credit requirements
- Very low 30 year fixed rates
- Accepts Mobile Homes
- Accepts non us citizens
- Down payment assistance allows 100% financing
- Seller can pay all closing costs
- Streamline refinance requires less documentation when refinancing FHA to FHA
| - Requires mortgage insurance at all LTV's
- Only for owner occupied homes
- Can only have 1 FHA loan active at a time
- Full documentation only
|
| VA | - Up to 102% financing
- No mortgage insurance
- Less restrictive credit guidelines
- Seller can pay all closing costs
- Streamlined refinance with less documenation when refinancing from VA to VA
- Low 30 year fixed interest rates
| - Must be VA eligible
- Owner occupied homes only
- Can only have 1 VA loan active at a time
- Takes longer process than other loan programs
|
| USDA Rural Loans | - 102% Loan to Value
- Higher debt to income allowances
- Less stringent credit requirements
- Seller can pay all closing costs
- Low 30 year fixed linterest rates
- No mortgage insurance
| - Property must be in an eligible USDA area
- Income restrictions apply based on size of family
|
| Hard Money | - No Income requirements
- No asset requirements
- No minimum credit scores required
- Up to 65% LTV on refinances
- Close in a matter of days
| - Highest Rates
- Lender typically charges more points
|
| Commercial Loans | - High LTV income producing purchase loans
- Low rates for income producing properties
- Bridge loansfor non income producing properties
- Low rates for commercial loans
| - Loans typically take longer to close than residential
- Appraisal and title fees are typically required upfront
|
| Rehab Loans | - Finance purchase price and rehab expenses
- Fast closings
- Easy draw schedules
- Interest reserves. No payments required for first six months
- Incentives for repeat business
| - Higher interest rates than conventional loans
- Typically upfront points financed into loan
|
| Jumbo Loans | - Loans above the conforming loan limits
- Stated income loans available
- Foreign National Okay
- Stated Income Allowed
| - Rates are higher than conforming rates
|
| Super Jumbo Loans | - Loans above the conforming loan limits
- Stated income loans available
- Foreign National Okay
- Stated Income Allowed
| - Rates are higher than conforming rates
|
| 1st Time Home Buyers | - 100% financing
- No reserve requirements
- Gifts allowed
- stated income to lower LTV's
| - Full Documentation Preferred
|
| Foreign National Loan | - No Doc Loans
- Stated Loans
- Loans up to $5M
| - Interest rate are higher than conventional Financing
|
| Manufactured Home Loans | - Singlewide & Doublwide okay
- 100% Purchase & 95% cashout refinance
- Stated Loans
- No minimum loan amount
| - Lower rates if land is owned. Higher rates if property on rented land.
- 580+ credit for best terms
|
| Lot Loans / Raw Land Loans | - Land only purchases
- stated income available
- Interest only (for lower payments)
| - 100% financing not available on land
|
| No Doc Loans | - No income requirments
- No asset requirements
- No employment requirements
| - Higher Rates than traditional financing
|
| Stated Income Loans | - No ned to verify income or assets
- Interest only available
- 30-40 year fixed rates available
| - must state income. Not a no doc loan
- Interest rates higher than conforming rates
|
| Self Employed Loans | - Full doc options
- Stated Income and No doc available
- 30 year fixed rates, Arms, Interst only available
| |
| FHA Secure | - Same flexible credit standars as normal FHA loans
- Can be behindon mortgage payments
- Allows current lender to write down mortgage balance
- Allows 2nd liens to remain in place
- Combined LTV over 100% allowed
- Non US Citizens allowed
- Secure 30 year fixed loan
| - Must refinance due to ARM adjusting
- Must be behind in payments within last 12 months
- Can only refinance loans that are not already FHA insured loans
|
| 30 Year Fixed | | |
| Condo Loans | | |
| Reverse Mortgage | - No Income | No Credit Requirements
- Get lump sum or payments over time
| - Must be 62 or older
- must be primary residence
|
| HELOC (Home Equity Line of Credit) | | |
