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CALL US NOW: 1-954-801-2419
CALL US NOW: 1-954-801-2419
Below are the main types of loans available from all mortgage lenders. There are various programs What makes one lender different from the other is the way they structure their loan programs. Some lenders may cater to big investors and/or lower-risk clients, while others cater to homeowners and/or higher-risk clients.
Here are Mortgage Funding Group we work with many different lenders offering various programs to help you find the loan best suited for your needs.
Check below, or better yet, give us a call, we are happy to explain: 954-801-2419.
FIXED RATE LOANS
With a fixed rate mortgage, the interest rate and the amount you pay each month remain the same over the entire life of the mortgage. Clients who plan to keep their home for a long period of time will find a Fixed Rate Mortgage an excellent way to lock in an interest rate for the life of the loan.
- 30 and 15 years fixed rate most popular loans
- There are 5 and 7 years fixed rate loans with balloon (full) payments at the end
- Interest Rate remains the same for entire loan term
ADJUSTABLE RATE LOANS
With an adjustable rate mortgage (ARM), the interest rate fluctuates per the financial indexes. Initial interest rates of ARMs are typically offered at a discounted ("teaser") interest rate lower than fixed interest rate. Over time, when initial discounts are filtered out, ARM rates will fluctuate as general interest rates go up and down. Different ARMs are tied to different financial indexes, some of which fluctuate up or down more quickly than others. To avoid constant and drastic changes, ARMs typically regulate (cap) how much and how often the interest rate and/or payments can change in a year and over the life of the loan. Several variations are available for adjustable rate mortgages including hybrids that change from a fixed to an adjustable rate after a period of years. Examples 5/1 and 7/1 where the interest rate and monthly payment remains fixed for the first 5 or 7-years and changes every year thereafter.
- Rate and monthly payments change every number of years based on the agreed adjustment period of the loan, example every 1-year, 3-years, 5-years or 7-years
- Example, 7/1 ARM rate - monthly payment fixed for first 7 years and then changes (adjusts) every year thereafter
- 30 years term available with adjustable rate
FHA LOANS
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A mortgage loan that is insured/guaranteed by the Federal Housing Administration. FHA loans are available to individuals who have below average credit history and who can't afford a high down payment:
- New FHA loan limit ceiling increased to $718,750
- Typically used for owner-occupied primary residence
- Both Fixed & adjustable rates available
- 30, 15 years term available
- 3.5% minimum down payment
- 600 or higher credit score required
- Higher allowable Debt-to-Income ratio 50+%
- Seller may pay up to 6% of your closing cost
- FHA 203K rehab/repair loan programs available
- Loan Limits: $373,750 single-family; $478,450 duplex; $578,250 triplex; $718,750 quadplex
- Proof of Income documents vary: W2; Tax Returns; Bank Statements; Social Security; Pension/Retirement; Alimony; Child Support; Profit/Loss Statement
VA LOANS
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A home-mortgage available to United States Veterans, Service Members and divorced spouses who have not remarried. VA Loans are issued by qualified lenders and guaranteed by the U.S. Department of Veterans Affairs (VA):
- Must be a Veteran or serve in the USA armed forces
- 100% Financing available
- Typically used for owner-occupied primary residence
- 30, 15 year terms available
- 0% down payment allowed
- Fixed & adjustable rates available (but rates lower than conventional rates)
- 600 or higher credit score required
- Sellers may pay up to 6% closing costs and concessions
- Higher allowable Debt-to-Income ratio 50+%
- Loan Limits: $373,750 single-family; $478,450 duplex; $578,250 triplex; $718,750 quadplex
- Proof of Income documents vary: W2; Tax Returns; Bank Statements; Social Security; Pension/Retirement; Alimony; Child Support; Profit/Loss Statement
CONVENTIONAL LOANS
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Generally, these loans are a good options for clients with higher credit scores and stable employment histories:
- Issued by banks, credit unions, mortgage companies, Fannie Mae and Freddie Mac. and private lenders
- Conforming Loan amount maximum $510,400
- Non-Conforming/Jumbo loan amount exceeds $510,400
- 3% down for conforming loans (amounts up to $510,400)
- 20% down for non-conforming/jumbo loans (exceed $510,400)
- PMI required when down payment is less than 20%
- 30, 15 year terms available
- Fixed or Adjustable Rates
- 620 or higher credit score required
- Sellers may pay up to 3% closing costs and concessions
- Debt-to-Income ratio 45%
- Proof of Income documents vary: W2; Tax Returns; Bank Statements; Social Security; Pension/Retirement; Alimony; Child Support; Profit/Loss Statement
Full Document VERIFICATION REQUIREMENTS
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Full Document Verification is best suited for buyers who are able to document their income and have manageable debt.
- FHA, VA and Conventional loans available
- Docs Needed - Income Verification (less than 20% down-payment)
> Last 30 days paystubs/checks
> Last 2 years W2 forms
> Social Security Benefit Letter
> Pension/Retirement statement
> Alimony, Child Support Letter
- Docs Needed - NO Income Verification (20% down-payment)
> Last 3 months bank statements
> Last 2 years W2s and Tax Returns (all schedules)
BANK STATEMENTS VERIFICATION REQUIREMENTS
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For self-employed borrowers who want to use bank statements and profit and loss statements to qualify for a mortgage:
- Income based on deposits to both business and personal accounts
- Conventional loans only
- Docs Needed
> Last 3 months bank statements
> Last 2 years W2s and Tax Returns (all schedules)
> Profit & Loss Statement signed by licensed CPA
> Copy CPA license