Conventional Loan Programs
Who is this Fannie Mae and Freddie Mac? A Conventional loan is a mortgage that is not guaranteed or insured by any government agency, but rather guaranteed by the two government-sponsored enterprises (GSEs) Fannie Mae and the Freddie Mac. All Conforming, High-Balance, and Super-Conforming mortgages conform to the terms and conditions of the two GSEs.
The current national conforming loan limit for 2022 is $647,200. High Balance loan amounts are available in select counties across the country that experience high home prices.
Conventional loans offer financing for primary residences, second homes and investment properties. Condominiums, Planned Unit Developments (PUD) and manufactured homes can utilize conforming financing. Downpayment requirements are determined by the occupancy of the property and can be as little as 3% down for owner occupied.
FHA Loans – Great for 1st Homebuyers
Government and issued by a bank or other lender that is approved by the agency. FHA loans generally require a lower minimum down payments, and applicants may have lower credit scores.
The FHA loan is designed to help low- to moderate-income families attain homeownership. They are particularly popular with first-time homebuyers. As with conventional financing, FHA will financing FHA approved Condominiums, Planned Unit Developments (PUD) and manufactured homes.
VA Loans – THANK YOU Veterans for Serving your country
VA loans are guaranteed by the Dept of VA and help active service members, veterans, and their surviving spouses become homeowners. A certificate of eligibility will determine
VA loans can provide up to 100% financing on primary residences for purchase or refinance. Eligible borrowers can use a VA loan to purchase or build a home, improve and repair a home, or refinance a mortgage. A VA streamline loan allows for a refinance on a current VA home. VA approved Condominiums, Planned Unit Developments (PUD) and manufactured homes are eligible for VA financing.
USDA Loans – Rural Housing
United States Department of Agriculture / USDA are home loans given to qualified borrowers looking to buy or refinance a home in a rural location. These loans are government insured by the USDA and are generally for low to middle income households buying a home for primary residence. Specific income and property eligibility must be met.
ONe-time close (otc) Construction loans
One-time close (OTC) construction loans are offered for Conventional loans, FHA and VA loans. They allow for the purchase of the lot and construction of the house.
Unlike traditional construction loans – which require a second credit qualification and closing before the loan converts to a permanent mortgage. A One-Time Close convert to a permanent traditional mortgage in a single closing. This means no second closing, saving you time and money. Available for both stick-built and manufactured homes, this program also contains fewer
limits on property types and permanent mortgage options.
A renovation mortgage is single close loan that enables borrowers to purchase a home that needs repairs or refinance an existing home with additional funds to renovate or repair the property. Renovation loans are available on conventional, FHA or VA loans. Conventional renovation loans will allow the addition of a permitted Accessory Dwelling Unit (ADU). Repairs or improvements must be permitted to the real property and add to the value of the property.
Non-QM – DSCR / Bank Statement / Asset Based / No Income loans
A non-qualified mortgage (non-QM) is a loan program that is designed for borrowers who can't or don’t want to meet the income criteria of a qualifying mortgage. For example, if you are self-employed or don't have all the necessary documentation to qualify for a traditional mortgage, you might need to look at non-qualified mortgages.
Non-QM loan programs that may assist you are:
- Debt Service Coverage Ratio (DSCR) – investment property program that allows for the use of rents to cover the mortgage payment, including the taxes, insurance and Homeowners Association Dues, if applicable
- Bank Statements – 12- or 24-months business bank statements for self-employed borrowers
- Asset Based – use of institutional assets as basis for repaying the loan
- No Income – allowing for no income to be documented with a minimum 20% equity position and documented institutional assets
Reverse Mortgage loans
There has been a lot of negativity around reverse mortgage loans that isn't accurate and Swanson Lending can help you understand why a reverse mortgage might be a good solution for your wealth plan. A reverse mortgage is secured by a residential property, that allows the borrower to access the value of the property that isn’t mortgaged. These loans are designed for borrowers that are 55+ as payments are deferred until the borrower(s) pass, sell or move out of the home. Interest is added to the loan balance each month. The loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower(s) or their estate will not be required to repay any additional loan balance in excess of the value of the home. Borrowers are still responsible for property taxes or homeowner's insurance unless a loan set aside account is established.