Residential Loan Programs

Mortgages that are not government-backed are known as conventional home loans.

They include:

• Conforming loans
• Non-conforming loans
• Jumbo loans
• Portfolio loans

Conforming loans conform to guidelines established by government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac. They buy mortgages from lenders and sell them to investors to make mortgages more available.

Non-conforming loans are loans that do not conform to the GSE guidelines.

Jumbo loans are loans that are larger than the loan limits set by the GSEs.

Portfolio loans are loans that are held by mortgage lenders on their own books. These types of loans may have features that other loans do not because lenders can set their own guidelines.

Conventional Fixed Rate loan have interest rates that don’t change for the life of the loan.

Benefits of a Fixed Rate loan include:

• The interest rate does not change for the life of the loan which provides protection from rising interest rates.
• Usually there is less documentation required than for FHA or VA loans decreasing the overall processing time.
• Typically the interest rate and APR are lower than other types of fixed-rate loans.
• These loans are available for refinancing.
• Different fixed rate period options are available, such as 15, 20 or 30 years.

Adjustable Rate Loans

With an adjustable rate loan, the interest rate changes periodically, usually in relation to an index and payments may go up or down accordingly.

Benefits of an Adjustable Rate loan include:

• Lenders generally charge lower initial interest rates, initially, making payments lower.
• The loan could be less expensive over a long period than a fixed-rate mortgage if interest rates remain steady or move lower.

Considerations of an Adjustable Rate loan include:

• There is the risk that an increase in interest rates would create higher monthly payments.
• The length of time the loan is held should be considered. If the loan will not be held for a long time, rising interest rates may not pose a major problem.

Refinancing a home mortgage can be a big decision for many homeowners. Your situation and needs change over time so why shouldn’t your mortgage? Now might be the right time for you to refinance into a lower rate mortgage. You should take the time to consider the following questions to see if refinancing makes sense for you.

• Are you tired of your adjustable-rate that never seems to stop adjusting?
• Is Private Mortgage Insurance (PMI) getting you down when it doesn’t need to?
• Has the time come to save more money every month?
• Are mortgage rates currently lower than what your rate is?
• Will other financial opportunities present themselves as you refinance?

Refinancing is an easy way to solve many of your mortgage worries. Getting a lower monthly rate and paying less over the life of your loan just makes sense. At Freedom Legacy Lending we’re ready to find the right refinancing solution for you. Our staff of refinance experts will help you evaluate your mortgage needs and draft a refinancing plan that will save you money.

Be sure to check out our mortgage refinance center to get the information you need so you can make a sound decision for you and your family.

Along with decreasing your interest rate, refinance loans can also help you switch from an ARM to a FRM, and in some cases reduce your loan term.

Jumbo Loans are loans that exceed the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and is not eligible to be purchased, securitized, or guarenteed by Fannie Mae or Freddie Mac. A Jumbo Loan is for mortgages more than $484,350. It also offers 30 and 15 year fixed rate mortgage and competitive ARM products with full document, alternate documentation and limited documentation.

What are the Jumbo Loans Down Payment Requirements?

For Purchase transactions Jumbo Loans require the home-buyer to put down at least 20% of the purchase price of the home. Cash out and No cash out refinance are allowable.

What types of property are eligible?

Most Jumbo loan programs allow you to purchase single family detached, Condo's, PUD's and single-family second homes can be financed with no prepayment penalty.

Jumbo Loan 15 and 30-Year Fixed or 5/1, 7/1, 10/1 LIBOR ARM

Maximum loan amount $3,000,000 min fico 740 with 48 months of principal interest taxes insurance reserve

If you are a first time home buyer and are limited with the amount of money you have to work with there are programs available with zero down (VA and USDA), or as little as 1% to 3% down (FHA and Conventional). The interest rates and closing costs vary on these programs. Once your personal situation is assessed the right program can be determined. Mortgage insurance is required when you have less than a 20% equity in your home. This fee is added to your payment and varies depending on the loan amount, the loan to value and your credit score. The fee can be eliminated in some instances by increasing the interest rate.

A mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low to moderate income borrowers who are unable to make a large down payment. FHA loans allow the borrower to borrow up to 96.5% of the value of the home. The 3.5% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers.

What Is An FHA Streamline Refinance?

If you already have an FHA mortgage then you might qualify for a FHA Streamline Refinance. An FHA Streamline Refinance is a great way for a borrower with an existing FHA backed mortgage to reduce their interest rate, reduce their payment or possibly both.

Here are some really cool facts about an FHA Streamline Refinance:

• No Appraisal is Required – because your loan is already guaranteed by your existing FHA loan, the FHA will allow you to use your home’s original purchase price as your home’s current value.
• You can still refinance even if you are underwater – even if you owe more than your home is worth, you might still be able to get an FHA Streamline Refinance loan.
• There is no FHA prepayment penalty to worry about.
• FHA Streamline refinance rates are the same as “regular” FHA loan rates.
• Employment verification is not required with an FHA Streamline Refinance – in other words, no paystubs, no W-2s or tax returns are required for approval.
• Income verification is not required with an FHA Streamline Refinance
• Credit score verification is not required with an FHA Streamline Refinance – instead of checking your credit, your payment history is used to determine fi you qualify or not. You must have no late payments in the last 90 days and only one or less late payment within the last 12 months.

The Refinance Must Have A "Purpose"

Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance or in other words a legitimate reason for refinancing. For Example:

• Refinancing from an Adjustable Rate Mortgage to a Fixed Rate Loan.
• or Reducing your principal + interest + mortgage insurance 5 percent or more.

Your Loan Balance May Not Increase To Cover The New Loan Costs

The FHA prohibits increasing a Streamline Refinance's loan balance to cover associated loan charges. The new loan balance may increase but only by the cost of the Upfront Mortgage Insurance Premium. All other costs -- origination charges, title charges, escrow -- must either be paid by the borrower as cash at closing, or credited by the loan officer in full.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

FHA 203k Renovation Loans

Turn a Fixer Upper into Your Dream Home

When shopping for a home, you may come across properties that aren’t quite what you’re looking for but have the potential to be your dream home with some repairs or renovations. With a renovation loan, you can roll the cost of financing or refinancing a home and repairs into one loan – saving you time and money.

Limited 203(k) Rehabilitation Mortgage

In addition to funding your new home, an FHA Limited 203(k) can provide up to $35,000 (including a contingency reserve) in additional funds to help make a few non-structural repairs or renovations such as updating a kitchen or bathroom, adding new flooring, purchasing new appliances, or repairing the roof.

Standard 203(k) Rehabilitation Mortgage

If your potential dream home needs more than $35,000 in renovations or the repairs are structural, the Standard FHA 203(k) might be the right solution. This program removes the restrictions of the limited option to allow for major home remodeling. A Standard FHA 203(k) can provide additional funds* to help with eligible repairs including moving or removing walls, minor pool repairs, and landscaping.
*Final disbursement of funds is subject to final inspection.

FHA Fixed

Maximum loan amount determined by county limit. Fico scores of 500 and above. Purchases up to 96.5% LTV, Rate and term refinances up to 97.75% LTV, and Cash out refinances up to 85% LTV. (LTV - Loan to Value) Full documentation.

FHA ARM

Maximum loan amount determined by county limit. Full documentation.

FHA Streamline

Maximum loan amount is 97.75% of loan to value. Very minimum documentation. No fico score required.

Want to buy a home in the United States, but you're not a US Citizen?

No problem, Our Foreign National Loan Program makes buying a home in the US easier for non-US citizens. While the guidelines on these loans are different than conventional, conforming or other federally insured loan programs, we are confident that our loan program can meet your needs.

Here are some of the key details:

• Our Foreign National Loan program offers competitive interest rates.
• You can borrow up to $750,000 per property (minimum amount borrowed is $100,000).
• Multiple Fixed rate terms to choose from (10, 15, 20, 25 & 30).
• Multiple Adjustable rate terms available as well (5/1, 7/1, 10/1).
• You can use our Foreign National Loan Program to Purchase a New home or refinance your current home.
• Debt-to-income ratios are 50% ("Assets for income" option).
• No pre-payment penalties.
• We can finance up to 75% loan-to-value (if the home is worth $500,000 then we can lend up to $375,000).
• This program is eligible for multiple property types including: single-family homes, condos and townhouses.
• All Loans are manually underwritten.
• The Foreign National Loan Program is available to Self-employed foreign national borrowers as well.
• Some seller concessions are allowed (Max 6% up to 65% LTV)
• Escrows: Taxes and insurance escrows are required

• Fix & Flip loans with rates as low as 6.99%.
• We finance up to 90% of acquisition costs and 95% of renovation expenses or 75% of after repair value.
• We offer lines of credit up to $100 million and single property loans from $50,000 to $2.5 million.
• We offer extremely competitive 5-, 10-, and 30-year asset-based rental loans with no tax returns or personal income required.

Meet the NADA

Nothing down with 100% FHA purchase financing. One submission. One approval. One closing.

the NADA Highlights:

• 580 FICO Min

• DTI per AUS

• Loan Amounts per county limits

• First Time Homebuyer OK

• Homeowner Education (at least one borrower) required

• Follow FHA guidelines and DU findings

• Non Occupying Co-Borrowers Allowed

• DACA Borrowers eligible

• 1 - 4 units  

• 96.5% First LTV 100% CLTV 

Down payment amount: 

• Up to 3.5% of the Sales Price or Appraised Value (lesser of) 

• Proceeds may be used for down payment and/or closing costs

• 6% 10-year community second

• No cash back to borrower 

Borrower Eligibility:

         •     No first-time homebuyer requirement. 

            •    Borrower must occupy the residence as their primary residence within (60) days of closing   

            •    Borrowers may have ownership in other property at time of closing 

            •    Non-occupant co-borrowers allowed

FHA Mortgage Limits

https://entp.hud.gov/idapp/html/hicostlook.cfm

High Balance allowed

At least one borrower must receive housing counseling from a HUD approved non-profit housing counseling agency

https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

Available Only in California 

Are you looking for a true debt service coverage ratio loan for your investment property? (DSCR)

Program Highlights

• As little as 0 months reserves (Use property cashflow to qualify)

• FICOS As Low As 620

• No Seasoning on cash out or rate and term

• No LTV Restrictions on 2-4 units

• LTV’s up to 85% (min 680 fico)

• No Rate Or Pricing Adjustments on Cash Out, Interest Only, Condo, Units

NONI Purchase & R/T

• Now going to 85% LTV on Purchase & R/T Transactions (min 680)

• Now going to 80% LTV on Purchase & R/T Transactions (min 660)

NONI Cash Out

• Now going to 80% LTV on Cash out Transactions (min 680)

• Now going to 75% LTV on Cash out Transactions (min 660)

Across the Board Expansion

• Increased max loans amounts across the board (Max $3.5mm)

• Now allowing 1x30x12

• Short Term Rental – NOW only need 1 year experience

• Business funds now OK with 25% ownership

Available States: Alaska, Alabama, Arkansas, California, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming  Red indicates no PPP allowed 

A Return to Common-Sense Underwriting

Loan will be through CDFI - Community Development Financial Institution

The Community Mortgage Program is a return to common-sense underwriting. It is designed to fill the void and address the issues limiting prime, credit worthy borrowers’ access to credit through common sense underwriting. This innovative product allows prime borrowers’ access to lending by eliminating unnecessary documentation that is not part of the credit underwriting decision

This exclusive mortgage product is unique in the marketplace

Program Highlights

• Primary Residence and Second Homes

• Credit Underwritten Based on LTV, FICO, and Liquidity

• Income Documentation Not Required

• Income Not Stated

• Debt-to-Income (DTI) Not Calculated

• Asset Seasoning 30 Days

• Only first page of a bank statement required for typical portfolio loans

• Loan Amounts Up to $3 Million

• Up to 80% LTV Purchase/Rate and Term

• FICO Beginning at 640

• Reserves from 3 Months

Ideal For

• Self-Employed/Small Business Owner

• Volatile or Irregular Income

• Retired

• Seasonal and Gig Workers

• Real Estate Investors

• Owners and Employees of Cash Businesses

• Newly Self-Employed

• Transitioning from Recent Health, Family, or Other Life Events

• Looking to Tap Trapped Home Equity

• Recent Immigration

• Disqualified Income

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs (VA) that is available to most US service members. It offers some very great benefits to those that have served our country.

• You can buy a home with no money down.
• You can refinance your home up to 100% of the value of your home.
• You never have to pay PMI (Private Mortgage Insurance).
• Sellers can pay your closing costs.
• They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
• If you already have a VA Loan you might be eligible for a VA Streamline Refinance.
• Disabled Veterans may qualify for a waiver of the Funding Fee if they receive any disability payments from the VA or if they are considered to be at least 10% disabled.

Who is eligible for a VA Loan?

As a rule of thumb, almost all active duty or honorably discharged service members are eligible for a VA loan.

You may be eligible for a VA loan if any one of these statements describes you:

• I served 181 days during peacetime. (Active Duty)
• I served 90 days during wartime. (Active Duty)
• I served 6 years in the Reserves or National Guard.
• I am the spouse of service member who was killed in the line of duty.
• I currently receive disability payments from the VA.

What is the VA Funding Fee and is it required?

Yes, it is required. It is a fee paid directly to the Department of Veteran's Affairs so that they can guarantee your loan and provide you with the opportunity to receive a loan with little to no money out of pocket.

How much is the VA Funding Fee

It depends on several factors including: Whether you are Active Duty, Retired, Guard or Reserve and whether you this is a first time use, subsequent use, or a cash-out refinance as well as how much of a down payment you are putting down. The fee can range from as little as 1.25% up to 3.3% of the loan. Generally, the more money you put down the lower the VA funding fee. Please contact us and we will help you to determine how what the exact cost of the VA Funding Fee would be for your particular situation.

Do I have to pay the VA Funding Fee out of pocket?

No, you can include the VA Funding Fee in your loan and pay the funding fee over the course of your loan.

Do I still have to pay other normal closing costs like Appraisal, Title and Escrows?

Yes, however with a VA loan if you are purchasing a new home the seller can pay for all or part of your closing costs.

What is a VA Streamline Refinance?

A VA Streamline Refinance is a refinance option that is available if you already have a VA mortgage and you want to lower your interest rate with little or no out-of-pocket closing costs. You don't have provide bank statements, W2s, job verification or paychecks.

Check to see if you qualify for a VA Loan:

Conforming Fixed 30, 20, 15 and 10 year

Loan amounts below $484,350. Full documentation.
Maximum Amount: $484,350

Conforming Adj 5/1, 7/1, and 10/1

Maximum loan amount $484,350. Full documentation.
Maximum Amount: $484,350

Conforming High Balance

Maximum loan amount is determined by county limit. Full documentation.

High Balance ARM 3/1, 7/1 and 10/1

Maximum loan amount is determined by county limit. Full documentation.