As an independent mortgage broker, I offer a significant advantage that you will not find with banks, credit unions, or retail lenders. I have access to numerous wholesale lenders, each of which offers different lending programs, guidelines (or qualification requirements), and rates. This means that when you work with me, I’m essentially your personal mortgage shopper who looks for the best program and rate to fit YOUR specific situation. It also gives me a selection of mortgage products that banks, credit unions, or retail lenders cannot match. This gives me far more flexibility to help a far greater number of people to purchase or refinance a home.
Here are just a sampling of the different programs that I can offer. If you have irregular income, or less than stellar credit, I still may be able to assist.
If you’re looking for a mortgage with payments that will remain essentially unchanged over its term, or if you plan to stay in your new home for a long time, a fixed-rate mortgage is probably right for you.
With a fixed-rate mortgage, the interest rate you pay and the monthly principal and interest payments are agreed upon from the outset and will not change throughout the term of the mortgage. In other words, the interest rate you close with won’t change—and your payments of principal and interest will remain the same each month—until the mortgage is paid off. As you can see, the fixed-rate mortgage is an extremely stable choice. You are protected from rising interest rates. And it makes budgeting for the future very easy.
But in certain types of economies, interest rates for a fixed-rate mortgage can be considerably higher than the initial interest rate of other mortgage options. That is the one disadvantage of a fixed-rate mortgage. Once your rate is set, it does not change and falling interest rates will not affect what you pay. However, you do have the option of refinancing if interest rates drop significantly.
An adjustable-rate mortgage (ARM) is considerably different from a fixed-rate mortgage. It may be best if you’re buying a home while interest rates are high, if you expect increases in your income, or if you don’t plan to keep your home long. Keep in mind, with an ARM, you are taking the risk on the rise or fall of interest rates, not the bank.
In most cases, the initial interest rate of an ARM is lower than a fixed-rate mortgage.
With an ARM, your mortgage rate rises and falls with interest rates. Each lender’s interest rates are usually tied to a specific index. The rate you pay will be based on your lender’s index plus a margin, usually two to three points. Ask your lender for specifics. Also ask how the “caps” on your ARM work. “Caps” will limit the amount your lender can increase your interest rate in a single year and over the entire term of the loan.
A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages sometimes come with unique underwriting requirements.
The value of a jumbo mortgage varies by state—and even county. The FHFA sets the conforming loan limit size for different areas on an annual basis.
Alternative mortgages are designed for those instances where a borrower may not qualify under “conventional” or “government” underwriting guidelines. These may include, but are not limited to, the following:
Investor Cash Flow Mortgage – Qualifying for a mortgage on an investment property can be tricky, particularly if the borrower owns multiple properties. The Investor Cash Flow option makes qualifying simple. If the gross rents collected on the subject property are at least equal to the PITI (Principal, Interest, Taxes, Insurance monthly payment), the borrower qualifies. It’s that simple.
Bank Statement Mortgage – In some cases, a borrower’s tax returns don’t tell the whole story. This program was designed specifically for borrowers who are self- employed, or that work in the Service and Tip industry. The borrower’s income is derived using the most recent 12 or 24 months of personal and/or business bank statements.
Asset Qualifier – Borrowers qualify for this program based on their liquid assets or assets that can be liquidated without any restrictions. No income or employment needs to be verified, and there is no debt to income ratio needed. Typical borrowers who would take advantage of this program would have sizable assets, but don’t have sufficient income from regular employment.
A VA loan is a mortgage loan available through a program established by the U.S. Department of Veterans Affairs (VA) (previously the Veterans Administration). With VA loans, veterans, service members, and their surviving spouses can purchase homes with little to no down payment and no private mortgage insurance and generally get a competitive interest rate.
A Federal Housing Administration (FHA) loan is a mortgage that is insured by the FHA and issued by an FHA-approved lender. FHA loans are designed for low- to moderate-income borrowers. They require a lower minimum down payment and lower credit scores than many conventional loans do. Because of their many benefits, FHA loans are popular with first-time homebuyers.
Construction: Offering One Time Close Construction to Permanent Loans allowing borrowers to combine financing for a lot purchase, construction and permanent mortgage into one first mortgage loan. Only one closing means only one set of closing costs, helping save money. It also allows the process to move forward without interruption from potential snags in financing other aspects later on.
Renovation: There are multiple types of Renovation loans available including some that allow you to finance the purchase of a house along with the renovations to be completed prior to moving in.