Our Programs

Understanding Mortgage Programs

Mortgages are loans specifically designed for purchasing real estate or refinancing an existing loan on a property. Though the concept of mortgages dates back over 1500 years, they have been the primary means of acquiring real estate in the U.S. since the 1930s and 1940s, when Congress passed laws to promote homeownership. Over the past 80 to 90 years, numerous laws have been enacted to fine-tune the mortgage market, ensuring consumer protection while maintaining a healthy real estate sector. Although changes will continue, experts and lawmakers generally agree that the current state of mortgage law is robust, and current homeownership trends support this view. Below is an overview of mortgage programs to help you understand them better.

Two main factors determine which mortgage is best for you: transaction type and underwriting guidelines.

• Transaction Types
  • Purchase: Buying a home is an exciting milestone. The reasons for homeownership vary widely. Understanding your motivation for buying a home is crucial, both for you and your loan officer. As a full-service mortgage broker with relationships with over 50 lenders and investors, we offer a range of loan programs to suit your needs. We provide options for first-time homebuyers, including down payment assistance, interest rate incentives, and mortgage insurance discounts. Our purchase programs include options for zero down payment, 3%, 3.5%, 5%, 10%, and 20% down, allowing us to tailor the best down payment option to your financial goals.
  • Refinance: If interest rates drop, refinancing might be a good option. We can help evaluate your current situation and determine if a new loan could offer better terms, such as a lower payment, a shorter loan term, or cash out for debt consolidation. Refinancing can potentially simplify your financial life.
  • Streamline: Available on specific loan types, streamline loans are designed to lower your interest rate and monthly payment without changing the loan term or paying off debt. They offer a simplified process, requiring no income verification, appraisal, or asset documentation. If market conditions are favorable, a streamline loan could be an easy way to save money.
  • Construction: If you’re planning to build your dream home, a construction loan might be ideal. Instead of buying a completed property, this loan allows you to pay your builder over time as the house is built.
  • HELOC (Home Equity Line Of Credit): A HELOC is a flexible way to access the equity in your existing home. It can be useful for large expenses such as renovations or debt consolidation. Generally, it’s cheaper than a traditional refinance and offers favorable interest rates and terms.
  • Land Loan: If you’re interested in purchasing a piece of property without a home or building on it, a land loan can provide the necessary funds. This type of loan can be used for subdivision lots, recreational property, or agricultural land.
• Guideline Types
  • Fannie Mae and Freddie Mac: These government-sponsored entities (GSEs) are not government-owned but are trusted by the government to support a healthy mortgage market. They set standards that help ensure borrowers will be able to meet their mortgage payments.
  • Jumbo: If you need a mortgage amount that exceeds the limits set by Fannie Mae and Freddie Mac, a Jumbo loan is required. Jumbo loans have different underwriting guidelines, particularly concerning down payment and debt-to-income ratios.
  • FHA (Federal Housing Administration): FHA loans are insured by the FHA, which protects lenders against borrower default. FHA guidelines are designed to help first-time homebuyers and offer lower limits on mortgage amounts, reduced interest rates, lower down payment requirements, and higher debt-to-income ratios.
  • VA (Veterans Administration): VA loans are designed for veterans and offer benefits such as zero down payment, no mortgage insurance, and high debt-to-income ratios. If you or your spouse are a veteran, a VA loan could be a great option.
  • USDA (United States Department of Agriculture): USDA loans are intended for purchasing homes and farms in rural areas. They offer zero down payment, favorable streamline options, and low interest rates to encourage homeownership in less densely populated areas. These guidelines support agricultural and rural development.
  • Portfolio Loans: Sometimes, borrowers’ needs don’t fit standard underwriting guidelines. Portfolio lenders offer loans based on their own criteria, independent of government or insurance requirements. These loans can be beneficial if you’re struggling to get approved through traditional channels. While all governing laws like RESPA, HMDA, and TILA still apply, underwriting guidelines are set by the lender, making portfolio loans a flexible option worth exploring.