Loan Products

Conventional Loans – Conforming and NON- Conforming Loans

Not government-backed: Unlike FHA, VA, or USDA loans, conventional loans rely solely on the borrower’s creditworthiness and financial profile.
Credit requirements: Generally require higher credit scores compared to government-backed loans.
Down payment: Usually require a down payment of at least 3% to 20%, depending on the lender and borrower qualifications.
Loan limits: Subject to conforming loan limits set by the Federal Housing Finance Agency (FHFA), but there are also non-conforming or jumbo conventional loans that exceed these limits.
Private mortgage insurance (PMI): If the down payment is less than 20%, borrowers typically must pay PMI until they reach 20% equity in the home.

Protfolio Loans – (Non-QM)

Loan amount exceeds conforming limits: Often called jumbo loans when the loan amount is higher than the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
Held by lender: The loan remains on the lender’s balance sheet rather than being sold to investors.
Flexible underwriting: Lenders can set their own criteria for credit scores, income verification, debt ratios, and property types.
Non-standard borrowers: Often used for borrowers who don’t qualify for conventional loans due to unique financial situations.
Custom terms: Interest rates, down payments, and repayment schedules can be tailored.
Higher risk, higher reward: Since the lender assumes more risk, portfolio loans may have higher interest rates or fees.
Examples: Loans for self-employed borrowers, investment properties, jumbo loans, or properties that don’t meet typical guidelines.

Government Loans

FHA Loans (Federal Housing Administration)
Insured by the FHA.
Designed for low-to-moderate income borrowers.
Require as little as 3.5% down payment.
More lenient credit score requirements.
Borrowers pay mortgage insurance premiums (MIP).

VA Loans (Department of Veterans Affairs)
Available to eligible veterans, active-duty service members, and certain military spouses.
No down payment required.
No private mortgage insurance (PMI).
Competitive interest rates.
Requires a Certificate of Eligibility (COE).

USDA Loans (United States Department of Agriculture)
For rural and suburban homebuyers meeting income limits.
No down payment required.
Low mortgage insurance costs.
Must meet geographic and income eligibility.

Home Equity Loan

Loan type: Closed-end second mortgage (lump-sum disbursement). Different from a HELOC (open-ended, revolving).
• Purpose: Use for home improvements, debt consolidation, large expenses; secured by equity in your home.
• Loan-to-value (LTV): Lenders combine first mortgage balance + new loan; typical max combined LTV is 80%–90% depending on credit and lender.
• Interest rate: Usually fixed for a home equity loan. Rates depend on credit score, LTV, term, and market conditions.
• Term length: Common terms 5–30 years. Shorter terms = higher monthly payments, lower total interest.
• Repayment: Fixed monthly principal + interest payments (fully amortizing), starting immediately after disbursement.
• Amortization: Fully amortizing schedules are common; some lenders may offer interest-only initial periods—confirm details.
• Loan amount: Based on available equity (home value minus mortgage balances), income, debt-to-income (DTI), and credit history.