Conventional or conforming loans are based on the dollar amount limit set by the Office of Federal Housing Finance Agency (FHFA). The FHFA is the federal regulator for Fannie Mae and Freddie Mac. They oversee the two government sponsored enterprises (GSE) to make sure that they're fulfilling their mandate of promoting home ownership in America.

These are the most common type of mortgages and is most likely to provide you with the lowest rates and fees. The current loan amount limits are here.

Jumbo loans are available to consumers for any loan amounts over the conforming limit. Jumbo loans are standard when dealing with high-cost areas, where the loan amount can reach millions of dollars. Due to the downturn in 2006 that lasted until 2008, these loans subsequently dried up. They were seen as too risky for investors.

Beginning in 2013, jumbo loans made a comeback. Due to the fact that Fannie Mae and Freddie Mac are not investors for this type of loan, most of these products are provided by institutions directly as a portfolio program.

FHA stands for the Federal Housing Administration. An FHA loan is unique because it is a loan that is backed directly by the FHA instead of Fannie Mae or Freddie Mac.

If you are a first time home buyer, with little down payment, this might be a good loan for you. These loans were introduced by the government during the Great Depression to help Americans with home ownership. You can obtain these types of loans with as little as a 3.5% down payment. These loans require an upfront PMI fee as well as a monthly PMI. Speak with one our loan officers to see if this is the right mortgage for you.

VA stands for Veterans Affairs. VA loans are are backed by the Department of Veteran Affairs not Fannie Mae or Freddie Mac.

To qualify for a VA loan, you must be a veteran or active military and be able to produce a certificate that proves you're eligible. These certificates show your record of service in the military. The great thing about these loans is that you can get a mortgage with 0% down payment.

The United States Department of Agriculture (USDA) assists approved lenders in providing low- and moderate- income households the opportunity to own a home in eligible rural areas. There are several benefits of a USDA loan, including flexible credit underwriting requirements and no down payment required.

We’re here to make the USDA home loan process easier, with tools and knowledge that will help guide you along the way.

Down payment assistance programs can help borrowers with the down payment on their first home. These are just like second loans on a property that have special conditions such as no initial payment or loan forgiveness after a period of time. Some loans have to be repaid while others don't. These can be specific to the state and city that you live in or lender specific. There may be requirements such as household income maximum limits and loan amounts offered.

Also known as “debt service coverage (DSC) or debt coverage ratio” (DCR), DSCR is the comparison of an investment property’s mortgage payment and rental income. It is used to measure a property’s ability to produce enough cash to cover its monthly debt. Expressed as an equation DSCR = Rental Income / PITIA. Also known as Investor Cash Flow.

Non-QM loans have been starting to get popular due to a certain niche type of borrower. These would be borrowers who have plenty of income and assets but might not have the traditional documentation required for a mortgage. For example, a lender qualifies deposits from a borrower's personal or business checking/savings account to use as income instead of W2's, paystubs, or tax returns.

The goal is to get a loan to purchase the home and at a later time refinance into a QM loan such as conventional. For investment or rental properties DSCR (Debt Service Coverage Ratio) will only look at the rental income of the property to qualify.

Income Documentation Types:

• Bank Statements 12-24 Months (Personal or Business)

• CPA Signed Business P&L (Profit and Loss) Statement

• VOE (Verification of Employment) form signed by employer

• DSCR (Debt Service Coverage Ratio)

Temporary rate buydowns give buyers a lower interest rate and lower monthly payment at the start of their loan. The seller provides the savings, so there's no cost to the buyer. With four buydown options, there's one to help most buyers.

Temporary Buydown Options:

• 3-2-1 Buydown

• 2-1 Buydown

• 1-1 Buydown

• 1-0 Buydown

Properties that require commercial loans are apartment buildings, office buildings, shopping centers, and other commercial properties. The only residential properties that are categorized as commercial are multi-family properties that have five (5) or more units. Commercial loans have many upfront costs and take longer to fund. Banks and credit unions are primary investors for these loans. Guidelines for commercial loans can differ tremendously amongst different lenders.