B/C Loans do not meet the credit requirements of Fannie Mae and Freddie Mac. They are known as B, C and D paper loans. Loan applicants typically have a bad credit history, have filed for bankruptcy, or have had a property in foreclosure.
B/C Loans are often issued as temporary loans until the applicant can restore credit and qualify for conforming "A" loans. Interest rates on B/C Loans are generally higher than for conforming "A" loans.
Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae and Freddie Mac. Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. The conforming loan limit is adjusted every year to reflect changes in the average price of a home in the U.S. The annual limit is set by Fannie Mae’s and Freddie Mac’s federal regulator, the Federal Housing Finance Agency (FHFA) and announced in November. Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market – effectively decreasing the demand for non-conforming loans.
Maximum Loan Amount for 2020:
Number of Units
Contiguous States, District of Columbia,and Puerto Rico
Alaska, Guam, Hawaii, and the U.S. Virgin Islands
NOTE: The conforming loan limit in Alaska, Hawaii, Guam and the Virgin Islands is 50% higher.
Conventional loans are mortgage loans offered by non-government sponsored lenders. These loan types include:
Fixed Rate Loans
Balloon Mortgages and Pledge Asset Loans
Jumbo / Construction Loans
FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are an attractive option, especially for first-time homeowners:
Generally easier to qualify for than conventional loans.
Lower down payment requirements.
Cannot exceed statutory loan limits.
Fixed Rate Mortgage
Fixed Rate Mortgage:
With a fixed rate mortgage, the interest rate does not change for the term of the loan; the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.
Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.
A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.
· Lower monthly payments than a 15 year fixed rate mortgage
· Interest rate does not go up
· Payment does not go up, it stays the same for 30 years
· Higher interest rate than a 15 year fixed rate mortgage
· Interest rate stays the same even if interest rates go down
A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.
· Lower interest rate
· Build equity faster
· If interest rates go up, yours is fixed
· Higher monthly payment stays the same if interest rates go down
· Interest rate stays the same even if interest rates go down
Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes. Typically Jumbo Loans require a higher down payment than traditional loans.
Location Efficiency Mortgage (LEM)
Location Efficient Mortgages are available to individuals purchasing more expensive homes in areas where with efficient public transportation systems. These loans take into account monies saved on the expenses related to owning or leasing automobiles.
While LEM loans will allow a purchaser to buy a house that is more expensive than they would qualify for using a traditional mortgage, it does not lower the monthly payment.
LEM loans are only available in certain markets:
· Chicago, IL
· Los Angeles, CA
· San Francisco, CA
· Seattle, WA
Niche Loan Products
WE SPECIALIZE IN
FIRST-TIME HOME BUYER (FTHB) LOAN PROGRAMS,
and we also provide the following services and loan programs:
* HARP 2.0 (Home Affordable Refinance Program) for "Underwater" homes (propety value is less than mortgage–UNLIMITED Loan-To-Value for Fannie Mae or Freddie Mac loans!)
* HomePath and HomePath Renovation
* FHA Streamline Refinance
* FHA 203k Streamline (or Standard)
* 95% Financing, One-Loan, NO Mortgage Insurance (Lender-Paid MI)
* 97% Financing MyCommunity Loan
* Purchase a home 1 day after Short Sale! (must be current on mortgage)
* Down Payment Assistance Program
* Cash Out Refinance (even for currently Listed Properties!)
* Change in Rate/Term Refinance (Reduce your monthly payments!)
* 95%, 97% and 100% Financing (Purchase & Refinance)
* 102% Financing for Purchases (USDA)
* Home Equity Loan
* Home Equity Line of Credits
* FHA Loans (Federal Housing Administration; Credit Score is not a qualifying factor!)
* VA Loans (U.S. Department of Veterans Affairs)
* Mortgage Credit Certificates (MCC) for First-Time Home Buyers
* CalHFA Benefit Programs (California Housing Finance Agency, for First-Time Home Buyers)
* CalPERS Benefit Programs (California Public Employee Retirement System)
* CalSTRS Benefit Programs (California State Teachers' Retirement System)
* Reverse Mortgages (No re-payment EVER! For Senior Citizens)
* Non-Permanent U.S. Residents
* First-Time Home Buyers Investment Properties, without landlord history
* No Pay Stub, No W2, No Tax Return (VOE Program)
* No Income, No Asset Vertification (No Doc)
* 3% Below Market Interest Rate (3-2-1 Buydown)
* 40 Years Term
* Interest-Only Payments
* Foreclosure Bailouts
* Short Sale Financing
* REO Financing (Banks' Real Estate Owned properties)
* Same Day out of Bankrupcy Discharge Okay
* Non-Prime (Supposedly "Bad" Credit)
* Hard Money
* And even the "Hard-To-Do" Loans!
Fund in 10 business days
No tax return / income verification
No prepayment penalty* (Depend on selected loan program)
The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve homeownership. The Rural Housing Service (RHS) helps qualifying applicants, who cannot receive credit from other sources, purchase modestly priced homes as their primary residence.
RHS Loans are an attractive option because:
Minimal closing cost
Low or no down payment
RHS loans can be used toward the purchase and renovation of a previously owned home or a new construction. Families must be able to pay their monthly mortgage, homeowner's insurance and property taxes.
Contact me to find out if you qualify for an RHS loan!
State and Local Housing Programs
State and Local Housing Programs:
Many state, county and local government programs offer financing for qualifying low-to-moderate income families wishing to purchase their first home. Loan assistance programs like Mortgage Credit Certificate (MCC) offer a partial tax credit for interest on the loan.
These programs typically offer:
More relaxed qualifying guidelines
Lower upfront fees
Lower interest rate
Designed to offer long-term financing to American veterans, VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.
Here's how it works:
100% financing without private mortgage insurance or 20% second mortgage.
A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA.
When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
When refinancing a home, veterans may borrow up to 90% of reasonable value in order to refinance where state law allows.
Daily rate based on: SFR/Primay/LTV60/FICO 780/Purchase
IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.
Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.
APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.
Figure: 7 TAC §80.200(b)
“Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 north lamar, suite 201, Austin, Texas 78705. complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. a toll-free consumer hotline is available at 1-877-276-5550.
The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. a written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.”