CONVENTIONAL LOANS

QUICK CLOSE AND MORE OPTIONS

A conforming loan is a non-government loan that is guaranteed by Fannie Mae and Freddie Mac, which are publicly-traded, government-sponsored enterprises. This guarantee ensures the value of the loan, which is important to issuers.

Home buyers seeking a conforming loan typically enjoy the largest selection of loan products at the most competitive rates. However, they must meet specific financial requirements, and the loan amount may not exceed a certain amount, set at a county-by-county level. In 2018, the loan limit for single-family homes in most states in $484,350 – but conforming high-balance loans are available in designated high-cost counties.

For more info, visit Fannie Mae

https://www.fanniemae.com/singlefamily/loan-limits

IDEALLY SUITED FOR

• Home buyers with solid credit profiles, including a FICO score of at least 620, and a qualifying debt-to-income ratio
• Home buyers whose borrowing needs do not exceed their county limits

LOAN FEATURES

• Both fixed and adjustable rate options are available
• Financing up to 97% of the purchase price (up to 95% with conforming high balance)
• More loan options available, including more options to avoid mortgage insurance
• More competitive rates & fees
• HomeReady Available (See Income Limits Here)

https://homeready-eligibility.fanniemae.com/homeready/

FHA LOANS

SUPER EASY ON CREDIT AND ASSETS QUALIFICATION

FHA loans are a type of government loan widely used by first-time homebuyers and people with low-to-moderate incomes. FHA loans offer down payments options as low as 3.5%. They also require upfront and annual mortgage insurance premiums.

IDEALLY SUITED FOR

• Home Buyers with lower credit scores
• Home Buyers with down payments of less than 20% of the purchase price

LOAN FEATURES

• Easier to qualify for than a conventional conforming loan
• Higher DTI (Debt to Income)
• Financing up to 96.5% of the Purchase price

*These are brokered loan products.

DOWN PAYMENT ASSISTANCE PROGRAMS

Down Payment Assistance (DPA) Programs are first-time homebuyer programs typically offered by your county to assist you with the costs of purchasing a home in that county. Guild maintains one of the mortgage industry’s most extensive network of approved partner relationships with county housing offices nationwide.

Eligibility for DPAs is commonly based in part on income thresholds. However, in some high-cost housing areas, DPA eligibility may be based on factors other than income. DPA is commonly provided in the form of a loan or grant, which is secured as a lien against the property and often forgiven over time.

IDEALLY SUITED FOR

• First-time homebuyers
• Those whose incomes fall below the area median income levels

LOAN FEATURES

• The ability to increase buying power or buy a home in a shorter period of time
• Potential to avoid mortgage insurance
• Non-repayable grants up to the entire DPA loan amount available

VA LOANS

The Veterans Administration (VA) offers loans for eligible U.S.  veterans, reservists, active-duty military personnel, National Guard and surviving spouses of veterans with available entitlement. VA loans often have more competitive terms than non-VA loans.

Visit the U.S. Department of Veterans Affairs for detailed eligibility information.

https://www.benefits.va.gov/homeloans/purchaseco_certificate.asp

IDEALLY SUITED FOR

• Members of the U.S. military or National Guard, active or retired

LOAN FEATURES

• Zero down payment options
• Lower rates than other loan programs
• No Mortgage Insurance
• Lender Paid Closing Cost Program Available

USDA LOANS

GET SPECIAL FINANCING FOR RURAL HOMES

The United States Department of Agriculture (USDA) provides special financing opportunities to borrowers who live in rural areas as defined by the USDA. In fact, approximately 97% of U.S. homes are located in eligible areas.

To see if the area you are shopping for a home in qualifies, visit the USDA Property and Eligibility Site

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

IDEALLY SUITED FOR

• Those who live in areas defined as rural
• Households with lower to moderate incomes

LOAN FEATURES

Specialized loans available for homebuyers based on geographic area and income

• Lower rates and fees than most other loan programs
• Zero down payment options

EXPANDED PROGRAMS

SUPER FINANCING FLEXIBILITY

An Expanded loan, also known as a Non-QM loan, is an out-of-the-box alternative designed to deliver one thing: flexibility. When other loans aren’t quite cutting it, an Expanded loan can bridge the gaps. Several programs are available and have been tailored to meet the needs of different groups of borrowers.

IDEALLY SUITED FOR

• Professionals with stock options on a future vesting schedule
• Professional Real Estate Investors
• Doctors, dental surgeons or veterinarians
• Individuals with a signing bonus, stock options and/or salary
• Self-employed individuals
• Easy Investment Property Loans
• Foreign Nationals
• Contractors

PROGRAM BENEFITS

• Loan amounts from $100,000 to $3 million
• Leverage alternative income sources
• Flexible qualification requirements
• Non-warrantable condos can qualify
• Interest-only financing available
• Bank statement options
• Allows for employment gaps
• No Income No DTI Program- Use Rental Income to Qualify

*These are brokered loan products.

REVERSE MORTGAGE

WHAT IS A REVERSE MORTGAGE LOAN AND HOW DOES IT WORK?

A reverse mortgage is commonly known as a home equity conversion mortgage (HECM). It works by enabling the borrower to access equity in their property and use it to supplement retirement income.

WHO IS ELIGIBLE FOR A REVERSE MORTGAGE LOAN?

All prospective borrowers must meet with a HUD approved counselor and undergo a financial assessment to determine if a reverse mortgage loan is the right solution. You may be eligible for a reverse mortgage loan if:

• You are 62 years of age or older
• You own your home and use it as your primary residence
• The house is single family, multi-family (up to 4 units) or an approved condominium or manufactured home
• You own your own home free and clear or have a small amount left to pay on the existing mortgage
• Your home is in good condition prior to taking out the loan

BENEFITS OF A REVERSE MORTGAGE LOAN

There are several reasons why homeowners choose a reverse mortgage loan:

• Eliminate monthly mortgage payments
• Access the equity you have built in your home
• Supplement retirement income
• Loan amount is based on your age, home value, and current interest rate and can be dispersed in a lump sum or line of credit
• Loan does not have to be repaid as long as you are living in the home and meeting loan terms

During the term of your reverse mortgage loan, you will still be required to pay:

• Property taxes
• Homeowner’s insurance
• Basic home maintenance
• Homeowner’s Association (HOA) fees, if applicable

*These are brokered loan products.

HOME EQUITY LINE OF CREDIT (HELOC)

A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debt on other loans such as credit cards. A HELOC often has a lower interest rate than some other common types of loans, and the interest may be tax deductible. Please consult your tax advisor regarding interest deductibility as tax rules may have changed.

HOW A HELOC WORKS

With a HELOC, you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit.  As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card. This means you can borrow against it again if you need to, and you can borrow as little or as much as you need throughout your draw period (typically 10 years) up to the credit limit you establish at closing. At the end of the draw period, the repayment period (typically 20 years).

QUALIFYING FOR A HELOC

To qualify for a HELOC, you need to have available equity in your home, meaning that the amount you owe on your home must be less than the value of your home. You can typically borrow up to 90% of the value of your home minus the amount you owe. Also, a lender generally looks at your credit score and history, employment history, monthly income and monthly debts, just as when you first got your mortgage. Back end DTI is Max 45%

INTEREST RATE

When you have a variable interest rate on your home equity line of credit, the rate can change from month to month. The variable rate is calculated from both an index and a margin. An index is a financial indicator used by banks to set rates on many consumer loan products.  Most banks, in, use the U.S. Prime Rate as published in /The Wall Street Journal/ as the index for HELOCs. The index, and consequently the HELOC interest rate, can move up or down. The other component of a variable interest rate is a margin, which is added to the index. The margin is constant throughout the life of the line of credit. As you withdraw money from your HELOC, you’ll receive monthly bills with minimum payments that include principal and interest. Payments may change based on your balance and interest rate fluctuations, and may also change if you make additional principal payments. Making additional principal payments when you can will help you save on the interest you’re charged and help you reduce your overall debt more quickly.

*These are brokered loan products.