Considered “prime” loans, these are traditionally for borrowers with higher credit scores and are backed by Fannie Mae or Freddie Mac. Loans that were endorsed to Fannie or Freddie before May 31, 2009 may be eligible for special HARP (Home Affordable Refinance Program) refinances. These are streamlined refinances that do not require an appraisal and can apply if homes have little to no equity.
Insured by the United States Department of Housing and Urban Development (HUD), FHA loans require low down payments, flexible loan options, and stable rates. FHA loans are popular among new homebuyers and first-time mortgage holders.
Veterans and members of the U.S. military often rely on VA loans for their home mortgages, which can include low or no down payment options and less-stringent credit requirements. A veteran may borrow up to 100% of the purchase price.
This option is for borrowers who do not qualify for a prime loan (Conventional, FHA, VA, etc.) due to a life event that resulted in a low credit score, such as a foreclosure or bankruptcy. These types of loans are a temporary solution that allows a borrower to continue with their goal of buying or refinancing a home. Once the borrower’s credit is repaired, we recommend refinancing into a prime loan.
This is the process of obtaining a new mortgage in an effort to reduce monthly payments, lower your interest rate, take cash out of your home or change mortgage companies. Consolidating debt with the tax deductible proceeds of a new mortgage loan can save a homeowner hundreds of dollars per month.
Construction financing is actually two loans. The first is a short-term loan that is used to construct the home and the second is your permanent financing. Typically, the construction loan automatically converts into this permanent loan when your home is finished. In the construction phase, a schedule is set up to enable funds to be drawn, as needed, to finance various stages of building. Interest is charged on the money that is disbursed. While the home is being built, borrowers usually make interest-only payments on the loan.
A reverse mortgage is a tax-exempt home loan that allows homeowners to take cash out of their home using their existing home equity, with no monthly payment. This loan program is available to homeowners ages 62 or older, who occupy a property as their principal residence. This loan is meant to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and health care. However, there are no restrictions on how reverse mortgage proceeds can be used. The borrower is not required to pay back the loan until the home is sold or otherwise vacated.
Manufactured Home Mortgage
Contrary to popular belief, mortgage financing is available for manufactured homes. To qualify, the home must have been built after June 15, 1976, be a double wide or larger, been moved only once and have land included. A manufactured home on leased land is not eligible. Military veterans can buy with no down payment while non-veterans can buy with as little as 3.5% down.
Private Money Financing
Private money is a short-term loan that allows for special circumstances, such as a manufactured home set-up, unusual property or non-traditional borrowing. This money can also be used to buy foreclosures or homes at auction.