LOAN PRODUCTS & PROGRAMS
FIXED & ARMS
An Adjustable Rate Mortgage (ARM) is a type of home loan where the interest rate can over time, typically in relation to a specific index. Initially, ARMs often offer lower interest rates compared to fixed-rate mortgages, making them appealing for borrowers looking for lower initial payments. However, as rates adjust, monthly payments can increase or decrease, creating uncertainty for homeowners. It's essential to understand the terms of the loan, including adjustment periods and rate caps, to potential changes in payment amounts.
FHA
An FHA loan is a government-backed mortgage designed to help homebuyers, especially first-time buyers, secure financing with lower down payment requirements and more flexible credit score criteria. This type of loan is insured by the Federal Housing Administration, making it an attractive option for those who may not qualify for conventional loans. With competitive interest rates and the ability to finance closing costs, FHA loans can make homeownership more accessible to a broader range of buyers.
CONVENTIONAL
A conventional mortgage is a type of home loan that is not insured or guaranteed by the government. Typically offered by private lenders, it requires a higher credit score and a down payment, often ranging from 3% to 20% of the home's purchase price. These loans usually have fixed or adjustable interest rates and are popular among homebuyers looking for straightforward financing options. Conventional mortgages can be an excellent choice for those with stable financial profiles to purchase or refinance a home.
HOME EQUITY LINE OF CREDIT
A Home Equity Line of Credit (HELOC) is a flexible borrowing option that allows homeowners to access the equity in their homes. It works like a credit card, where you can borrow money as needed up to a certain limit, using your home as collateral. HELOCs typically come with variable interest rates and can be used for various purposes, such as home improvements, consolidation, or major expenses. It's a convenient way to tap into your home's value while making manageable payments.
VA
A VA loan is a mortgage option available to eligible veterans, active-duty service members, and some members of the National Guard and Reserves. Backed by the U.S. Department of Veterans Affairs, these loans offer several benefits, including no down payment, competitive interest rates, and no private mortgage insurance (PMI) requirements. This makes homeownership more accessible and affordable for those who have served in the military. VA loans can be used to purchase, build, or refinance a home, making them a valuable resource for military families.
NON-QM
Bank statement loans are a type of mortgage designed for self-employed individuals or those with irregular income who may not have traditional income. Instead of relying on W-2 forms or pay stubs, lenders evaluate the borrower's statements to assess their cash flow and ability to repay the loan. This option can provide more flexibility for borrowers who have substantial deposits but may qualify for conventional loans due to their unique financial situations.
DSCR
A Debt Service Coverage Ratio (DSCR) Loan is a type of financing used primarily by real estate investors. It assesses a borrower's ability cover their debt obligations with their income. The DSCR is calculated dividing the property's net operating income by the total debt service. A DSCR greater than1 indicates that the property generates enough income to cover its, making it a crucial factor for lenders when evaluating loan.