Conventional Mortgage
A conventional mortgage is a type of loan not insured by the government, backed by private lenders and investors, requiring a down payment of at least 5% and often offering lower interest rates than government-backed mortgages.
FHA Mortgage
An FHA loan backed by the Federal Housing Administration (FHA) offers lower down payment requirements, greater flexibility with credit scores and debt-to-income ratios, and can be used for a variety of property types, making homeownership more accessible to those who may not qualify for conventional mortgage loans.
VA Mortgage
A VA mortgage, guaranteed by the U.S. Department of Veterans Affairs, offers eligible military members, veterans, and surviving spouses the ability to buy, refinance, or improve homes with no down payment, no mortgage insurance, and relaxed credit score requirements.
ARM (Adjustable Rate Mortgage)
An ARM (adjustable-rate mortgage) is a type of mortgage loan with lower initial interest rates that can fluctuate based on market conditions, making it a potentially attractive option for borrowers who plan to sell or refinance within a few years or expect an increase in their income, but potentially risky for those planning to stay in their home for a longer period or who are on a fixed income.
Jumbo Loans
A jumbo loan is a mortgage loan that exceeds the conforming loan limit set by the FHFA, commonly used for higher-priced homes or properties in high housing cost areas, with potentially stricter underwriting requirements, higher interest rates, and fees that require borrowers to evaluate their financial situation and consult with a mortgage professional.
USDA Mortgage
A USDA mortgage is a type of mortgage loan guaranteed by the USDA, designed to help borrowers in rural areas purchase, repair, or refinance a home with affordable financing.
Home Ready & Home Possible Programs
HomeReady and Home Possible are two mortgage programs that offer low down payment options, flexible credit requirements, and down payment assistance to help low- to moderate-income borrowers purchase a home.
Bank Statement Loans
These loans are designed for self-employed borrowers who have difficulty documenting their income. Instead of traditional income documentation, borrowers can provide bank statements to verify their income.
DSCR (Debt Service Coverage Ratio) Loans
These loans are a type of commercial real estate loan that is based on the cash flow of the property rather than the creditworthiness of the borrower. This type of loan is often used for income-generating properties such as apartment buildings, retail centers, and office buildings.
1099 only Loan
1099 only loan program designed for individuals who receive income reported on Form 1099 rather than traditional W-2 income. This type of loan is often used by self-employed individuals, freelancers, or independent contractors who do not have consistent income documentation or may have difficulty meeting the income requirements of conventional loans.
Foreign National Loans
These loans are designed for non-U.S. citizens who are purchasing a property in the United States. Borrowers may not have a U.S. credit history or traditional income documentation, so lenders may use alternative methods to verify their ability to repay the loan.
Non-Warrantable Condo Loans
These loans are designed for borrowers purchasing a condo that does not meet Fannie Mae or Freddie Mac guidelines, typically because of certain financial or legal issues with the condo association.
ITIN Loans
An ITIN loan is a mortgage loan program designed for individuals who do not have a Social Security Number (SSN) but possess an Individual Taxpayer Identification Number (ITIN). ITINs are issued by the Internal Revenue Service (IRS) to individuals who are not eligible for an SSN but still need to fulfill their tax obligations.
Interest-Only Loans
These loans allow borrowers to make interest-only payments for a set period, typically five to ten years, before they begin to repay the principal. These loans can be risky for borrowers, as they do not build equity in the property during the interest-only period.
Asset-Depletion Loans
These loans are designed for borrowers with significant assets but lower income. Lenders can use the borrower's assets to determine their ability to repay the loan
Commercial Real Estate Loans
Commercial real estate loans are loans specifically designed for financing commercial properties or income-generating real estate. These loans are used by businesses and investors to purchase, refinance, or develop properties such as office buildings, retail spaces, industrial warehouses, apartment complexes, hotels, and more.
Condotel Loans
Condotel loans deviate from traditional mortgage requirements, classifying them as non-traditional loans. Nevertheless, they still necessitate meeting specific criteria related to income, assets, and credit score. The loan requirements often place more emphasis on the property itself and the buyer. For instance, lenders may stipulate that the condotel must be a minimum of 600 sq. ft. and feature essential kitchen facilities and separate bedroom space. Once the prerequisites are satisfied, the loan process follows a similar trajectory to that of a traditional loan.
Manufactured Home Loans
Manufactured home loans, also known as factory-built home loans, are specifically designed to finance the purchase or refinancing of manufactured homes. These are homes that are built off-site in a factory and then transported to the desired location.