Conforming Fixed Rate Mortgages
Conforming Loans are those that meet Fannie Mae and or Freddie Mac underwriting requirements. In other words, income, credit, and property requirements must meet nationally standardized guidelines. Conforming loans are subject to loan amount limits that are set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These limits vary based on the region in which the subject property is located as well as the number of legal units contained in the subject property.
The interest rate on a Fixed Rate Mortgage remains fixed for the life of the loan, and monthly payments of principal and interest payments never change. The most common fixed rate terms include the 30-year term, 20-year term and 15-year term. In general, with a shorter the term, the interest rate will be lower but the principal and interest payment will be higher.
Adjustable Rate Mortgages
The main difference between an adjustable rate mortgage and a traditional fixed rate mortgage is that with an ARM, the interest rate goes up and down. It changes according to a set of formula (typically one year) for the life of the loan. Usually, your monthly payment goes up and down with the interest rate.
Federal Housing Administration (FHA)
The Federal Housing Administration is a division of the U.S. Department of Housing and Urban Development, commonly referred to as HUD. FHA loans were created to provide affordable mortgages to the average homebuyer. The federal government insures FHA loans, or guarantees participating lending institutions against loss from default on qualifying loans.
Veterans Administration (VA)
Veterans Administration loans were created to help US Military veterans finance the purchase of their homes with favorable loan terms. For the purpose of the VA program, “veteran” includes active duty service personnel and certain categories of spouses. Like FHA loans, the federal government insures VA loans, or guarantees VA approved lending institutions against loss from default on qualifying loans.
Jumbo loans are those that exceed the loan amounts allowed by FNMA and FHLMC.
Portfolio Loans (Non-Conforming Loans)
For mortgages that don’t meet traditional secondary market standards, TEG will look at the big picture and may still be able to provide a solution.
Home Equity Lines of Credit
A home equity line of credit loan is a line of credit that is secured against real estate. The amount of the credit line is dependent upon the amount of equity in the subject property. Lines of credit are typically designed for borrowers who intend to pay back the borrowed funds within a short period of time. Equity lines of credit are processed and underwritten similar to traditional mortgages; however, lender guidelines vary widely.
Including 203K Streamline, 203K Full and FNMA Homestyle.
Residential Construction, Bridge and Lot Loans