Conventional loans are actually any type of creditor agreement that are not guaranteed by the Veterans Administration (VA), or insured by the Federal Housing Administration (FHA). In general, all conventional loans are eligible for sale to the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC) or to private secondary market investors. There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan.

Conventional loans are actually any type of creditor agreement that are not guaranteed by the Veterans Administration (VA), or insured by the Federal Housing Administration (FHA). In general, all conventional loans are eligible for sale to the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC) or to private secondary market investors. There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan.

• Minimum credit score of 620
• Down payment can be a gift from a family member
• At least one borrower must be a first time home buyer
• Max 3% seller assist

A jumbo loan is a loan in which the amount borrowed is greater than the loan limit set by Fannie Mae (FNMA) & Freddie Mac (FHLMC). A loan amount greater than $548,250, is considered a jumbo loan.

Advantages:

• • • Able to finance a home that is over the maximum loan amount of $647,200 established by Fannie Mae and Freddie Mac
  • • Enables a borrower to purchase “more house”

A jumbo loan is a loan in which the amount borrowed is greater than the loan limit set by Fannie Mae (FNMA) & Freddie Mac (FHLMC). A loan amount greater than $548,250, is considered a jumbo loan.

Advantages:

• • • Able to finance a home that is over the maximum loan amount of $647,200 established by Fannie Mae and Freddie Mac
  • • Enables a borrower to purchase “more house”

FNMA has introduced a new Affordable Lending Product, HomeReady™. This program is designed for creditworthy, low-to-moderate income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities.

 

Program Highlights

• 30 Year Fixed Rate, Primary Residence Only
• 97% Maximum LTV/CLTV with a 620 FICO®
• 1-4 Unit Single Family, PUD, Condo Eligible
• Purchase and Rate & Term Refinance Available
• Maximum Qualifying Ratio of 50%
• No Minimum Borrower Contribution Required – Gifts Allowed
• Homebuyer Counseling Required
• Mortgage Insurance Required

Borrower Income Limits

• No income limits for properties located in low-income census tracts
• 100% of area median income (AMI) for properties located in high-minority census tracts or designated disaster areas
• 80% of AMI for all properties

Freddie Mac Home Possible® and Home Possible® offers a fixed-rate loan program and provides a responsible, low down-payment mortgage option for first-time homebuyers and low-to-moderate income borrowers.

Program Highlights:

• FHLMC Home Possible® – Max LTV 97%
• 15 & 30 Year Terms Available
• Lender Paid Mortgage Insurance Available
• Owner-Occupied Primary Residence Only
• 1-4 Unit SFR’s, PUD’s and Condo’s
• Max 50% Debt-To-Income
• Full Gift Eligible
• Lower MI Rates
• 620 Minimum FICO®

Borrower Income Limits

• No income limits for properties located in low-income census tracts
• 100% of area median income (AMI) for properties located in high-minority census tracts or designated disaster areas
• 80% of AMI for all properties

With Supreme Lending’s Lock & Look™ program* you can lock in a great interest rate now and take your time finding the home of your dreams. You can shop with confidence knowing you have your interest rate locked in for a full 60 days and are already qualified for a loan with Supreme Lending. WithLock & Look™, you get 30 days to look and another 30 to close. And, there is NO up front fee!

*Lock & Look™ is a registered service mark of Everett Financial D/B/A Supreme Lending and is available on Conventional 30 & 15 year fixed rate and FHA 30 year fixed rate loans for qualified borrowers. Lock expires after 60 days. Pre-qualification request must be made with Supreme Lending. Limited time offer. Available for conventional 15 and 30-year fixed loans and FHA 30-year fixed loans only.

The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.

Advantages:

• Bankruptcy not an automatic disqualification
• Lower interest rates
• Down payment is less
• Lower mortgage points and other closing cost requirements
• Resale can be made more quickly
• Is backed by the U.S. government

Features:

• Down payment required
• Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP is lower
• Loan Limits are lower than conventional
• MIP required regardless of the Loan-to-Value (LTV)

FHA 3.5% Down Payment

• Lower Credit scores permitted (as low as 580)
• Down Payment can be a gift from a family member
• Minimum 2 years from Bankruptcy
• Minimum 3 years from Foreclosure
• Max 6% Seller Assist

A VA loan is a mortgage loan guaranteed by the Veterans Administration. It was created in 1944 and signed into law by President Franklin D. Roosevelt. A VA loan provides veterans and/or their surviving spouses who have not remarried, with a federally guaranteed home with zero down payment. The program, also referred to as the GI Bill, has been highly successful and has helped millions of American veterans and their families acquire a home.

Advantages:

• No down payment
• VA does not require private MIP
• Limit on the amount of origination fees and closing costs that the lender can charge
• Limit also placed on appraisal fees

Features:

• Borrower with eligibility remaining must have a Certificate of Eligibility from the VA
• Borrowers are required to make a one-time funding fee based on loan amount and applicant’s service length.
• Closing costs can be paid by the lender and the seller.

The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA Rural Housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment.

Advantages:

• • • No down payment requirement
    • Property must be located in an eligible rural area
    • Closing costs can be added to the loan amount (if the property appraises high enough to include it at up to 100% of the appraised value)
    • Loan government guarantee fee up front and annual
    • Low interest rates
    • Applicants with a wide range of credit profiles may qualify
    • Income eligible applicants who do not qualify for conventional financing may qualify
    • Families & individuals that have minimal funds for a down payment and closing costs includes first time homebuyers and repeat homebuyers
    • Seller concessions – 6% max
    • No cash reserve requirement
    • No Non-Allowable costs
    • No First Time Homebuyer Requirement
    • 30 Year Loan at competitive fixed rate
    • No limit on gift funds

Features:

• • • Property must be in very good condition and have a high insulation R-factor
    • You cannot make over 115% of the median county income to qualify
    • Must be able to verify income limits

The process of acquiring a property for the purpose of primary residence, second home or investment property.

• Cosmetic Improvements – Interiors, Kitchens, Baths, Flooring, and Remodeling
• Energy Conservation Improvements
• Structural Alterations such as Repair or Replacement of Structural Damage, Additions to Structure and Finished Attics and/or Basements
• Eliminating Health and Safety Hazards
• Changes for Improved Functions and Modernization
• Repairing or Adding Roofing, Gutters and Downspouts
• Landscaping, Grading, Repairing Patios and Terraces that Improve the Property
• Decks / Fences
• Rehabilitation or Improvements to a Detached Garage, a New Detached Garage, or the Addition of an Attached Unit(s) (if allowed by the local zoning ordinances)
• Swimming Pools

Program Highlights:

• Loan is based on after improved value
• Owner occupied- second homes and Investment properties
• One loan, one closing and one monthly payment
• Project completion times up to 6 months
• Purchase
• Available on Refinance
• Minimum Credit Score 620
• Consultant required if repairs exceed $15,000

The process of acquiring a property for the purpose of primary residence, second home or investment property.

Advantages:

• Establishes credit history
• Secured investment
• Builds equity
• Can be used to borrow against

*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.

In simple terms, a cash-out refinance replaces your current mortgage with another loan that:

• Pays off your current mortgage balance
• Uses the equity in your home to provide additional funds for other purposes

 

A real estate property that is not occupied by the owner and has been purchased with the intention of earning a return on the investment either through rent, the future resale of the property, or both. An investment property can be a long-term endeavor, such as a rental home, or an intended short-term investment in the case of rehabilitation (where a property is bought, remodeled or renovated, and sold at a profit).

Advantages:

• Capital growth
• Rental income and yield
• May be tax shelter deductible*

*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.

Create the home of your dreams with the FHA 30 Year Fixed Rate 203(k) Rehabilitation Loan Program. Rehab loans help homeowners improve their existing home or even buy a home that in need of updates or repairs. With this program, you can finance both the purchase or refinance along with the renovation of your home through a single mortgage, instead of applying for multiple loans.

Supreme Highlights:

• Minimum Credit Score is 620 for all Borrowers
• Maximum 55% DTI for credit scores > 640
• Maximum 50% DTI for credit scores 620-639
• Funds are Disbursed to the Contractor as work is completed and inspected
• An FHA 203(k) Consultant is Required
• No Funds are Disbursed in Advance
• Up to 5 Disbursements can be made
• No Maximum Rehabilitation Escrow Amount

The process of paying off one loan with the proceeds from a new loan, using the same property as security. Cash received by the borrower at closing may not exceed $2,000 (not allowed in Texas). Status varies depending upon State Law. The purpose is, as the name implies, to reduce the interest rate, payment, and/or overall term of the mortgage.

Advantages:

• Reduction of the interest rate, payment, and/or overall term of the mortgage
• Limit of $2,000 cash (varies depending upon State Law)

When it comes to local knowledge and local decisions on condo financing – go with the people you know! At Supreme Lending, we have a dedicated team of experienced professionals who focus on project review and bring years of condominium financing expertise to the table for you.

Program Highlights:

• • • 10, 15, 20, 25 & 30 Year Fixed Rate Terms Available
    • Up to 97% LTV on Primary Homes
    • Up to 90% LTV on Second Home
    • Up to 80% LTV on Investment Homes
    • Limited Condo Review on Primary Homes up to 75% LTV/90% CLTV or 70% LTV/75% CLTV on Second Homes Based Upon Credit Qualifications

Supreme Highlights:

Benefits

• More Financing Options
  • We help clear exceptions to achieve warrantable status
  • Non-warrantable options available

• Less Roadblocks
  • Experienced, dedicated condo and project team
  • Assistance during new build/construction

• Great Turn Times
  • 24-48 hour approvals for condos already on the approved project list
  • 48-72 hour approvals for conventional condo loan projects

A person’s primary residence is the dwelling where they live, typically a house or a condo. A person can only have one primary residence at any given time, though they may share the residence with other people.

A primary residence is considered as a legal residence for the purpose of income tax and/or acquiring a mortgage.

Advantages:

• • • All interest on the mortgage may be tax deductible*
    • Establishes credit history
    • Secured investment
    • Builds equity
    • Can be used to borrow against
    • Gift funds are allowed

*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.

A second home refers to private ownership of a residence other than one’s primary residence. Depending on their purpose, second homes are sometimes called vacation homes or secondary residences. The property must be available for your exclusive use and enjoyment and must not be subject to any rental pools or long-term leases.

Advantages:

• Buy the home now while employed and retire in it later
• Build equity with an additional property
• Similar terms to primary residence loan