Our loan officers stand ready to review the numbers and recommend a program that gets you in the home you want – with a loan that meets your financial goals.

CONVENTIONAL
FHA
RURAL HOUSING
VETERANS ADMINISTRATION
203K
HOMESTYLE®
JUMBO
80-15-5

These loans may be made by Fannie Mae, Freddie Mac, and all other mortgages from banks, credit unions, and mortgage companies, including jumbo loans — for the most expensive homes with balances above conforming limits, currently at $417,000. There are two basic types of conventional loans:

Fixed rate: mortgage rate never changes over the life of your loan and

Adjustable rate: After an initial fixed-rate period, your interest rate can adjust up or down, depending on the market. This option can save you money if you plan to move or refinance within 5–10 years.

Conventional mortgage loans refer to any mortgage loan not insured or guaranteed by the federal government. These loans can fall under fixed mortgages or adjustable-rate mortgages (ARMs), which include hybrid ARMs.  Conventional loans may also be conforming or non-conforming, depending on the loan guidelines standards set by Fannie Mae and Freddie Mac. Conventional mortgage offers numerous benefits to borrowers under the program. Meeting strict conventional mortgage loan guidelines gives you a head start over other buyers with less stringent qualifications. This type of mortgage is also a fixed-rate product, making it more secure compared to other loans. Once you “lock in” to an interest rate, you keep it for the life of the loan. Payments remain the same despite interest rises or the fall of housing prices. This loan type offers more competitive mortgage rates and come with flexible payment terms. Borrowers can also avoid paying upfront mortgage insurance, saving money in the long run.

Advantages:
-          With a 20% down payment or greater mortgage insurance is not required. 
-          95/97*% financing available.  (*97% available for 1st time home buyers only)
-          Mortgage insurance and costs associated with the loan are typically less than FHA financing
-          Several mortgage insurance options available- borrower paid, lender paid, single premium

FHA home loans have been helping first time home buyers purchase a home since 1934. The Federal Housing Administration (FHA) insures the loan so Direct Mortgage Loans can offer you a better program. These loans also come with an easier qualification process due to less rigorous down payment and credit requirements. Borrowers with FHA home loans pay for mortgage insurance; this protects the lender from losses in case borrowers fail to pay back their loan. For many first-time homebuyers, a FHA-backed mortgage makes buying a home easier with less-rigid borrower requirements. The FHA Requirements for credit score and down payments are lower compared to conventional loans. FHA borrowers also have the advantage of assumable loans.

-          96.5% financing available
-          Less stringent guidelines than Conventional loans. 
-          Gift funds can be used towards down payments and closing costs
-          More flexible credit score guidelines
-          Higher allowance for debt to income
-          Shorter waiting periods from major credit delinquencies- foreclosure, bankruptcy

The United States Department of Agriculture (USDA) offers the Guaranteed Rural Housing (GRH) Loan Program to allow low- and moderate-income rural Americans an opportunity to obtain adequate but modest, decent, safe and sanitary dwellings and related facilities. Loans can be used to acquire, build (including funds to purchase and prepare sites and to provide water and sewage facilities), repair, renovate or relocate a home. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. The USDA program also provides financial assistance to disabled and elderly individuals in multi-housing complexes by working with public and non-profit organizations to provide developers with loans and grants for construction and renovation of housing complexes.

Advantages:
 -          100% financing available
-          Less expensive mortgage insurance than FHA
-          Income and property restrictions do apply

With our VA Home Loan Program, we offer programs that many other lenders can’t. Our armed forces military loans programs remove the stress of applying for much needed loans. We’ve helped a number of military personnel receive quick cash loans. We dedicate this service exclusively to the enlisted men and women of the United States Army, Marine Corps, Navy, Air Force, and Coast Guard. Past and current servicemen are welcome to apply for a quick Armed Forces Loan. An Armed Forces Loan may provide 100% financing with no down payment.

Advantages:
-          100% financing available
-          No monthly mortgage insurance
-          Similar qualification requirements to FHA loans
-          If you are an eligible veteran or an active duty member of the U.S. military, you may be entitled to:
          -          100% cash out for the value of your home
          -          Approval with a credit score as low as 620
          -          No out of pocket expenses
          -          No mortgage insurance

An FHA 203k loan covers the purchase price of the property as well as the cost of necessary home repairs. The down payment requirement is low, and eligibility criteria are favorable. For existing homeowners, a FHA 203k refinance can provide funds for property repairs or improvements before selling.  FHA 203k loans are also offered to eligible homeowners for low-cost financing for energy saving home improvement upgrades.  These loans are designated for houses that are damaged or in dire need of rehabilitation and are either regular or streamlined products.

Advantages:

-          Ability to explore more home choices
-          Personalize home improvements
-          Single loan for financing the mortgage, repairs & upgrades, based on the As-Improved value of the home
-          Immediately adds value (equity) to the home
-          Perfect for HUD REOs, foreclosures and short sales
-          Ideal for improvements to out-dated homes, kitchens and bathrooms
-          Homes with structural deficiencies needing additions or expansions
-          Refinancing allows for improvement instead of moving
-          Great for necessary major/structural repairs
-          Minimum credit score of 600
-          Only primary residences, attached or detached, are eligible

The HomeStyle® mortgage is Fannie Mae’s version of the FHA 203k rehab loan. It’s a convenient and economical way to make moderate repairs and renovations to your home via a “single-close” mortgage. With the HomeStyle® loan, there’s no second mortgage involved, no lingering home equity line of credit (HELOC), and no need to pay a second set of closing costs. There’s no need to occupy the home you’re rehabbing as Fannie Mae allows the HomeStyle Renovation Loan to be used for vacation homes and investment properties. Just about any type of renovation or repair is eligible, too, so long as the improved is permanently affixed to the home and adds value.

Advantages:
-          Purchases
          -          Perfect for HUD REOs, foreclosures, and short sales
          -          Improvement to outdated homes, kitchens, bathrooms, etc
          -          Structural deficiencies
          -          Additions and expansions
          -          Additions of decks, pools, and improved landscaping
-          Refinances
          -          Improve instead of move
          -          Necessary or optional major/structural repairs

A jumbo mortgage is a home loan for an amount that exceeds conforming loan limits established by Fannie Mae and Freddie Mac — currently $417,000 for a single-family home. Jumbo mortgages are available for primary residences, second or vacation homes and investment properties – and are also available in a variety of terms, including fixed-rate and adjustable-rate loans – with loan amounts up to $5 million.

Advantages:
-          Loan amounts up to $5 million
-          Single Loan up to 90% loan to value
-          Minimum 680 credit score to qualify.

80-15-5 loans, also known as “piggyback mortgages” are a great option for borrowers looking to avoid private mortgage insurance or keep their loan amounts under conforming limits. A combination of two loans, an 80-15-5 means the first mortgage is for 80% of the purchase price and the second is for 15%. Both loans are taken out at the same time, leaving the borrower with a down payment of only 5%. Piggyback mortgages are a great option for borrowers who plan on paying down the principal balance of their loan at a much faster pace than the amortization schedule dictates.
Advantages:
-          Avoid mortgage insurance
-          Minimum 680 credit score to qualify
-          Alternative to Jumbo Financing requirements and terms

Have any questions about a loan program?

Our mortgage professionals are standing by to answer any question or to discuss next steps in the process.