Loan Types: Purchases
For prospective homebuyers, there are many different loan types available. Some programs are designed for specific borrower profiles - like VA loans, FHA loans, and first-time homebuyer programs - while others are specific to the type of property, and still others are specific to the type of assets used to qualify and the loan amount needed. Our team works with individual borrowers to select a program that fits your needs.
Loan Categories
Mortgage loans may fit one or more of these categories, depending on the loan amount, criteria used to meet the qualifications, borrower profile, and other details. This is a brief list of some of the most frequent types of mortgages we secure.
Conventional
Conventional mortgages are not directly insured by the government. Conventional loans can be conforming or non-conforming. Conforming loans meet the guidelines and limits set by government-sponsored enterprises like Fannie Mae or Freddie Mac.
Non-QM
Non-QM (Non-Qualified Mortgages) are loans that use a different set of qualification criteria than standard qualified mortgages. These loans might use alternative forms of income and/or assets, allow for higher debt-to-income ratios, or negative credit history that might otherwise disqualify a borrower.
Government
To encourage homeownership, the government insures a few types of loans, including FHA, VA, and USDA loans. These typically have lower down payment and/or credit score requirements.
Adjustable Rate
Unlike a fixed-rate mortgage, Adjustable Rate Mortgages (ARMs) have an interest rate that fluctuates over the lifetime of the loan. They typically offer a lower interest rate for the initial term, then raise at set intervals.
Jumbo
Jumbo loans exceed the maximum cap to qualify as a conventional, conforming loan. The limit changes annually and may be higher in some high-cost living areas.
Investment
There are several loan options for second homes and investment properties that follow different guidelines than purchases for a primary residence. This includes DSCR (Debt Service Coverage Ratio) loans where the rental income for the property is used in place of the borrower's income.