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Loan Programs

FHA Loans

FHA loans are designed to help creditworthy lower-income and moderate income individuals and families to buy a home.  These loans are beneficial to those borrowers that wish to put a minimum amount of down payment on the home.  This program also has a little more flexibility in terms of borrower qualifications.


Some of the advantages of the FHA loan are:

  • Low down payment (only 3.5% may be required)
  • Down payment may also be in the form of a qualified Down Payment Assistance program or bona fide gift
  • Seller contributions are allowed
  • More flexible underwriting (approval)
  • Closing costs that lenders can charge are restricted
  • FHA loans are “assumable” to other qualified buyers
  • FHA Refinances can be streamlined (less documentation required for approval)
  • Some closing costs may be financed (less out of pocket expenses)
  • Some FHA loans allow for Energy Efficiency credits
  • Some FHA loans can allocate costs for repair/upgrade within the loan
  • The FHA loan is covered by a government loan insurance program which makes it more desirable for lenders and other institutions

The amount of money you can borrow, (which typically determine the cost of the home you can afford), is set by the US Government.  Contact us for more information on FHA loans.

The Federal Housing Administration (FHA) is a division of Housing and urban Development (HUD).

VA Loans

VA guaranteed loans are made by lenders and guaranteed against payment default by the US Government.    The Government created the VA loan program as a benefit for those who served in the Armed Forces.  The biggest advantage of the VA Loan program is that the borrower can purchase a home with zero down.

Low to no down paymentSome of the key advantages of the VA loan are:

  • Seller contributions are allowed
  • More flexible underwriting (approval)
  • Closing costs that lenders can charge are restricted (e.g. Loan Origination Fee cannot exceed 1%)
  • The VA Funding Fee is waived if the veteran is determined to be “disabled”
  • VA loans are “assumable” to other qualified buyers
  • VA Refinances can be streamlined (less documentation required for approval)
  • Some closing costs may be financed (less out of pocket expenses)
  • The VA loan is guaranteed by the US Government which makes it more desirable for lenders and other institutions

The US Government does not set a limit on the amount of money a veteran can borrow under this program.  However since the loan guarantee is limited most lenders have limits on how much can be borrowed and where there is a down payment requirement on higher loan amount.  Here is a list of maximum guaranteed loan limits by State and County.

The veteran must be able to provide a Certificate of Eligibility from the VA to qualify for the loan. Contact us for more information on VA loans.

HARP Program

Millions of homeowners found themselves in a difficult predicament after the U.S. housing bubble burst in 2006. As inventories soared nationwide, home prices plummeted. Many new homeowners saw the value of their homes drop below the balance of their mortgages, or nearly so. Later, these same homeowners were prevented from taking advantage of lower interest rates through refinancing, since banks traditionally require a loan-to-value ratio (LTV) of 80% or less to qualify for refinancing without private mortgage insurance (PMI). Take for example a house that was purchased for $160,000 but is now worth $100,000 due to the market decline. Further, assume the homeowner owes $120,000 on the mortgage. In this scenario, the loan-to-value ratio would be 120%, and if the homeowner chose to refinance, he would also have to pay for private mortgage insurance. If the homeowner was not already paying for PMI, the added cost could nullify much of the benefit of refinancing, so the homeowner could be effectively prohibited from refinancing.


The Home Affordable Refinance Program (HARP) was created by the Federal Housing Finance Agency in March 2009 to allow those with a loan-to-value ratio exceeding 80% to refinance without also paying for mortgage insurance. Originally, only those with an LTV of 105% could qualify. Later that same year, the program was expanded to include those with an LTV up to 125%. This meant that if someone owed $125,000 on a property that is currently worth $100,000, he would still be able to refinance and lock in a lower interest rate. In December 2011, the rule was changed yet again, creating what is referred to as “HARP 2.0”; there would no longer be any limit on negative equity for mortgages up to 30 years – so even those owing more than 125% of their home value could refinance without PMI. Also, the program was expanded to accept homeowners with PMI on their loan. Finally, any new mortgage lender was guaranteed not to be held responsible for fraud committed on the original loan. This greatly expanded the willingness of lenders to participate in the program.

Qualifying criteria

Certain criteria must be met to qualify for HARP. While there may be additional criteria imposed by the mortgage servicer, the government requirements are as follows:

  • The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. Many homeowners are unaware that their mortgages are linked to one of these organizations, since neither Freddie Mac nor Fannie Mae deals directly with the public.
  • The mortgage must have been acquired by Freddie Mac or Fannie Mae on or before May 31, 2009.
  • The homeowner must not have a previous HARP refinance of the mortgage, unless it is a Fannie Mae loan that was refinanced under HARP during March-May 2009.
  • The homeowner must be current on their mortgage payments, with no (30-day) late payments in the last six months and no more than one late payment in the last twelve months.
  • The current loan-to-value ratio (LTV) of the property must be greater than 80%.
  • The homeowner must benefit from the loan by either lower monthly payments or movement to a more stable product (such as going from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage).

HARP 2.0 and PMI

Many people who purchased their home with a down payment of less than 20% of the purchase price were required to have private mortgage insurance (PMI). This is common practice with Freddie Mac or Fannie Mae loans. Having PMI attached to a loan made that loan easier to sell on the Wall Street secondary market as a “whole loan”. PMI hedged the risk brought by the high loan-to-value ratio by offering insurance against foreclosure for whomever owned the “whole loan”.

Although HARP 2.0 allows homeowners with PMI to apply through the Making Home Affordable Refinance Program, many homeowners have faced difficulty refinancing with their original lender. HARP requires the new loan to provide the same level of mortgage insurance coverage as the original loan. This can be difficult and time-consuming, especially in the case of lender-paid private mortgage insurance (LPMI). As a result, many lenders are reluctant to refinance a PMI mortgage.

Fortunately, HARP 2.0 enables homeowners to go to any lender to refinance, so the mortgage holder is not stymied if the original bank is unwilling to pursue a HARP refinance.

Jumbo Loans

Jumbo Loans in this context are any mortgage which is not guaranteed or insured by the US Government which has a loan balance over the Conforming Loan Limit set by Fannie Mae and Freddie Mac.  Currently the conforming limit is $417,000 for a Single Family unit with exceptions in certain counties with higher limits via high balance loans.  There is no set maximum loan amount, that may vary from lender to lender, but it is not uncommon to see loan amounts in the millions.  This may be the only means for some homebuyers to acquire a higher priced home.

Because of the larger loan amount the risk associated with the loan increases and therefore down payment requirements are usually set higher than other loans to mitigate that risk.  Jumbo loans also may have a higher interest rate compared to a similarly structured Conforming Loan.

Some of the key advantages of the Jumbo Loan are:

  • Much higher loan balances may be available
  • Flexible underwriting (more creative financing options)
  • May finance vacation/second homes
  • Financing may be available for certain investment properties
  • Lenders may be willing to reduce or eliminate certain loan fees

Imperfect Credit Loans


This may be your golden opportunity to re-establish your credit…recover from overwhelming debt…or consolidate your high-interest debt into one easy, low monthly payment. We offer programs that allow for many credit challenges or imperfections allowing many consumers to become homeowners. Even if you’ve been turned down for a home loan before – or don’t think you can qualify – we can help!


Our professional staff works with you! We work with several wholesale lenders. This allows us to offer solutions to virtually anyone, no matter what your credit history is like! We realize that everyone is different. That’s why we treat you like an individual – on a one-to-one basis because everyone has different incomes, asset bases and credit histories. You may be able to qualify for our loan programs even if you fall into any of the categories below:

  • Bankruptcy
  • Mortgage Lates
  • Judgements
  • Liens, Charge offs
  • Collection accounts
  • Foreclosure
  • Medical bills
  • No credit history
  • Too many bills

What’s a conventional fixed-rate mortgage?

A “fixed-rate” mortgage comes with an interest rate that won’t change for the life of your loan. A “conventional” (conforming) mortgage is a loan that conforms to established guidelines for the size of the loan and your financial situation. Conventional mortgages often feature lower interest rates than jumbo loans.

Monthly payments on a conventional fixed-rate mortgage remain the same for the life of the loan, making it an attractive option for borrowers who plan to stay in their home for several years. The alternative to the fixed-rate mortgage is the adjustable-rate mortgage(ARM), which features lower monthly payments during the first few years. While many prefer the security of a fixed-rate loan, an ARM may be a better option – especially if you know you’ll be moving within the next several years.

30-Year Fixed-Rate Mortgages

The 30-year conventional fixed-rate mortgage has long been popular due to its fixed interest rate and lower monthly payments, however, since the interest payments are spread out over 30 years, you’ll pay more interest over the life of the loan than you would on a shorter-term mortgage.

15- and 20-Year Fixed-Rate Mortgages

With a shorter loan term and lower interest rate, a 15- or 20-year fixed-rate mortgage can help you pay off your home faster and build equity more quickly, although your monthly payments will be higher than with a 30-year loan. The 15- and 20-year fixed-rate mortgages are especially popular for refinancing.

Benefits and Considerations

No Interest Rate Surprises

With a fixed-rate mortgage, the interest rate won’t change for the life of your loan, protecting you from the possibility of rising interest rates.

The Best Fixed Rates

Conventional mortgages typically offer a lower interest rate and APR than other types of fixed-rate loans.

Fewer Hoops to Jump Through

Conventional mortgages often require less documentation than FHA loans or VA loans, which could speed up the overall processing time.

Refinancing Options Available

Conventional fixed-rate mortgages are available for refinancing your existing mortgage, too – and 15- and 20-year options are especially popular.

Requirements and Qualifications

  • Loan amount – The loan amount for a conforming mortgage is generally limited to $417,000 for a single-family home, though limits may be higher in regions where home prices are higher. Jumbo loans allow you to exceed the conforming loan limit to borrow for a higher-priced home.
  • Down payment – Most conventional loans will require at least 5 percent (and optimally 20 percent or more) as a down payment. For loans with lower down-payment requirements, explore government-backed mortgages like VA loans and FHA loans.
  • Credit history – Conventional loans are a good choice for borrowers with excellent credit, which generally means a FICO score of 720 or higher. There are also established guidelines for income and other personal financial information.

Conventional fixed-rate mortgages are a popular option, but they’re not the only one.

Conventional fixed 30 year
On a $150,000 loan for 360 months at 4.25% interest rate, monthly payments would be $737.91. No customer paid closing costs, APR is 4.25%.

Conventional fixed 20 year
On a $150,000 loan for 240 months at 4.125% interest rate, monthly payments would be $918.89. No customer paid closing costs, APR is 4.125%.

Conventional fixed 15 year
On a $150,000 loan for 180 months at 3.50% interest rate, monthly payments would be $1,072.33. No customer paid closing costs, APR is 3.50%.

Conventional fixed 10 year
On a $150,000 loan for 120 months at 3.25% interest rate, monthly payments would be $1,465.79. No customer paid closing costs, APR is 3.25%.

All payment examples above do not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included and an initial customer deposit may be required if an escrow account for these items is established.