New York Mortgage
Programs and Definitions
Just
click on the loan type your interested in for
more information!
Conventional
Mortgages
Conforming
Mortgages
Non-Conforming
Mortgages
Residential
Mortgages
FHA/VA
Mortgages
Fixed
Rate Mortgages
Adjustable
Rate Mortgages
Jumbo
Mortgages
Construction
Mortgages
Purchase
and Remodel Mortgages
Self
Employed or no Income/Asset Verification
100%
Financing Mortgages
80-20
Mortgages
Commercial
Mortgages
Part
/ Full Time Farm Mortgages
Portfolio
Mortgages
Private
Investor Loans
Private
Equity Loans
Hard
Money Loans
Please Note: The information
contained on this website is for informational
purposes only. Loan programs change frequently!
We can not guarantee that all programs are available
at all times. Also some programs are available
based on the borrowers credit and income situation!
Conventional
Mortgages: are any mortgage that is
not a VA or FHA loan. Conventional mortgages
may be conforming or non-conforming.
Conforming
Mortgages: Any loan that conforms to
the underwriting guidelines of Fannie Mae or
Freddie Mac is called a "conforming loan".
Guidelines such as the maximum loan amount,
down payment percentage, borrower and co-borrower
credit, borrower and co-borrower income requirements,
and appropriate property types.
Non-Conforming
Mortgages: Any loan that doesn't conform
to the underwriting guidelines of Fannie Mae
or Freddie Mac is called a "non-conforming
loan".
Residential
Mortgages: Loans for primary and secondary
residences.
FHA/VA
Mortgages: The Federal Housing Authority
backs mortgage loans for people who don’t
fit the traditional underwriting criteria for
getting approved for a home of their own.
People that benefit from these
loans are first time home buyers, people who
don’t have much credit history, and people
who have had credit issues in the past but have
everything back on track.
The interest rates on FHA loans
are comparable to conventional rates.
FHA can lend up to 97% of the
home value, and can be refinanced any time without
a pre-payment penalty, and without having to
qualify all over again. As long as you pay the
mortgage on time, you can do a streamline refinance
anytime interest rates fall.
In many cases, in high interest
rate environments, FHA loans are considered
superior to conventional loan because they can
be refinanced so easily when rates drop.
FHA also allows gift funds from
family members for the down payment, and also
allows home sellers to pay for closing costs,
so you don’t have to wipe out your bank
account to get into the home of your dreams.
Because FHA loans are designed
to help an underserved segment of the population,
there are FHA loan limits for each county in
the country, usually somewhere between $120,000
and $180,000. Call a representative today and
see if you can take advantage of an FHA loan
and what the loan limit is for your county!
Commercial
Mortgages: Loans to finance commercial
properties. For multi-family homes and apartment
buildings, offices, industrial buildings, and
retail development plans. Loan to Value typically
up to 80%. We can also finance raw land depending
on the property and situation.
Construction
Mortgages: With one time closing. We
arrange permanent financing prior to you acquiring
your building lot and starting construction.
Part
Time Farm and Full Time Farm Loans:
Loan programs are available for working farms.
Borrowers may qualify based on operating and
borrowers income. Loan programs for part time
farms typically require the borrower to have
a strong income and high credit rating.
Purchase
and Remodel mortgages: use the equity
difference between the purchase price and the
appraised value of the property to finance home
improvements.
100%
Finance mortgages: 100% financing mortgages
are available for some borrowers. Typically
these programs require a minimum credit score
of 700 and have other requirements/restrictions
that apply. Contact us for details!
80-20
Mortgages: involve an 80% first lien
mortgage with a second 20% mortgage at a slightly
higher mortgage interest rate. 80-20 programs
are also available to borrowers with "less
than perfect credit". 80-20 programs require
specific credit scores and also certain underwriting
requirements may apply.
Fixed
Rate Mortgages: Fixed rate mortgages
have an interest rate that is valid for the
life of the loan. Fixed rate mortgages are available
for 10, 15, 20 and 30 year terms.
Adjustable
Rate Mortgages (ARM): Adjustable rate
mortgages available have a fixed interest rate
for the the start of the term and a floating
rate thereafter. Once the initial period expires
(typically 1, 3, 5 or 7 years depending on the
program) the adjustment occurs either once every
6 months or once every year (depending on the
program) and fluctuates following published
financial indexes.
An ARM that adjusts every 6 month
will normally have a 1% cap (limit) per adjustment
and a 6% cap (limit) over the life of the loan.
Caps vary from mortgage program to mortgage
program. Contact us for specifics.
An ARM that adjusts every 1 year
will normally have a 2% cap (limit) per adjustment
and a 6% cap (limit) over the life of the loan
. Caps vary from mortgage program to mortgage
program. Contact us for specifics.
Jumbo
Mortgages: These are available for
borrowers purchasing or refinancing homes over
$417,000 for 1 & 2 unit properties, and
higher limits are available in Alaska and Hawaii,
and for 3 & 4 unit properties. Jumbo mortgages
may have different underwriting requirements
which vary from one loan program to another.
Some options that are available for jumbo loans
are: no income verification and no asset verification.
Portfolio
Mortgages: Most loans today are sold
on the secondary market to either Fannie Mae,
Freddie Mac or number of other institutions.Some
loans are kept by the bank that originally funds
the loan. Loans kept by the original funding
bank are called portfolio loans. Typically when
a lender intends to keep a loan in their own
portfolio they can be more flexible on the underwriting
requirements as the loan does not have to fit
the necessary requirements to be sold on the
secondary market.
Private
Investor Mortgages, Private Equity Loans, Hard
Money Loans: Are loans made by private
investors with their own money. Typically they
are for shorter terms and carry a higher interest
rate than conventional conforming mortgages
however, the private lenders can be much more
flexible with their lending as they do not have
to follow the underwriting requirements of conforming
loans. If they find the investment sound and
the asset value adequate they may make the loan.
Self
Employed or No Income/Asset Verification:
Typically a borrowers income is verified either
through the last 2 years W2's or in the case
of the self-employed their last 2 years tax
returns. However in certain cases borrowers
prefer not to have their income verified. Depending
on the borrowers personal situation they may
not show enough net income on their tax returns
to qualify for the loan they need.
Some loan programs have No Income
Verification options. Typically the interest
rates are slightly higher than conventional
income verified mortgages. Some "No Income
Verification" programs require the borrower
to sign IRS form 4506 or 8821 which allow lenders
to request your tax returns directly from the
IRS.
Programs are also available that
do not require verification of assets. These
programs are used by individuals who do not
want to disclose their assets.
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