Home mortgage loan types and options we service.
We believe that there are many first-time home-buyers out there who are stressing out over their ability to buy a home. If you’re one of those folks, you’re not alone. Many people feel overwhelmed when they start looking at all of the different mortgage options out there.
Below is a summarized list of loan options. Each type has a link to more information such as requirements, pros and cons etc.
Conventional loans are commonly used to finance home mortgages. They're also known as "banker's loans" and "A-paper loans." Banks and credit unions, which are federally insured, are the primary institutions that provide conventional loans. Conventional loans fall into what's called a "conforming" and "non-conforming" loan category.
An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA) and issued by an FHA-approved lender. FHA loans were created for low to moderate-income borrowers and require a lower minimum down payment, plus lower credit scores than most conventional loans. The FHA loan program has been part of the United States government’s policy aimed at protecting home buyers since 1934. As the U.S. housing market collapsed in 2009, the FHA became a more significant part of the overall mortgage market, as fewer home buyers could receive traditional financing..
Jumbo loans are home loans with a loan principal that exceeds the conforming loan limits set by the Federal Housing Finance Agency's guidelines, which vary from county to county. It's important to understand that the loan limit is only a guideline. Lenders will set their own jumbo loan limits by using a percentage of the county's conforming loan limit or by using their own proprietary underwriting guidelines.
A reverse mortgage loan can be a viable financing option for seniors who want to tap into the equity in their homes in order to supplement their income and meet their monthly living expenses. Learn more about the basics of reverse mortgages, including how they work, the benefits they offer, and what you need to consider before applying for one.
The primary benefit of a reverse mortgage is that it can provide older homeowners with access to the equity in their homes. The funds can be used to supplement monthly income, pay off existing debts, purchase property or pay for home improvements.
A USDA home loan is a mortgage loan offered to rural property owners by the United States Department of Agriculture. They are often referred to as "ag" loans because they're predominately used by farmers. However, anyone who lives in an eligible rural area can qualify for a USDA home loan.
A VA loan is a $0-down mortgage option issued by private lenders and partially backed, or guaranteed, by the VA (aka Department of Veterans Affairs). Eligible borrowers can use a VA loan to purchase a property as their primary residence or refinance an existing mortgage.
VA loans were created during World War II to help soldiers pay for homes without needing to make a down payment. Today, VA loans offer eligible military members and veterans the opportunity to purchase a home with $0 down, while also allowing qualified borrowers to get lower mortgage rates.
Commercial Property Loans
A commercial property loan is a loan used to purchase commercial real estate. It is similar to a residential mortgage, except that commercial mortgages are more complex, and the borrower is often a business rather than an individual. Lenders usually require that the property be owner-occupied, meaning that your business will have to occupy at least 51% of the building.
A loan modification is the act of restructuring a loan, either through a change in the interest rate, the terms of the original contract or repayment schedule, or by adding additional funds. Loan modifications are a common practice among mortgage lenders to allow distressed borrowers more time and lower monthly payments to keep their homes.