Conventional

Any mortgage loan other than a VA or an FHA loan. A conventional loan may be conforming (within Fannie Mae/Freddie Mac guidelines) or nonconforming (jumbo).

Jumbo (Nonconforming)

A loan amount that exceeds the limits permitted by Fannie Mae or Freddie Mac (current limit: $417,000). Jumbo Loans are purchased by investors other than Fannie Mae or Freddie Mac, and generally you will pay a higher interest rate for this type of loan than that of a conforming loan. The general rule of thumb is the higher the amount of the loan, the more down payment is required. These types of loans can also be a Fixed or Adjustable product.

Adjustable Rate (ARM)

This type of mortgage generally starts out with an interest rate lower than a fixed-rate loan. This saves you money early on and may help you qualify for a more expensive home. However, your rate is tied to a market index. As the index goes up or down, your payments will also change at each scheduled adjustment period. There are "rate caps” to limit the amount your mortgage can go up or down.

Fixed Rate

The most popular type of mortgage. The interest rate will remain the same for as long as you have your loan. If you expect to live in your home for many years, having the same interest rate may be your main concern. If you decide that you like the stable, predictable payments of a fixed rate loan, you may choose from repayment terms of 15, 20 and 30 years. Typically, the longer the term of the loan, the more interest you pay over the life of your loan. However, a longer repayment term means your monthly mortgage payments will be less than they would be with a comparable shorter-term loan.

FHA Loans

Federal Housing Administration insured loans are designed to help borrowers who might not qualify for conventional mortgages. FHA loans feature unique benefits such as low down payment of 3%, competitive fixed or adjustable interest rates, options for borrowers with less than perfect credit or no credit history, bankruptcy or foreclosure. There are no income limits for borrowers applying for FHA loans and no reserves are required either. Cash out refinance up to 95% is available. FHA Secure refinance program is available to assist home owners in difficult times to avoid foreclosure.

FHA Streamlined 203k program

Allows you to finance up to $35,000.00 of home repairs or improvements into your mortgage whether you are buying or refinancing.

USDA Rural Housing program

United States Department of Agriculture Rural Housing Program is available for you if you plan to purchase a home located in a community of less than 20,000 of population or other USDA approved area. This loan program features fantastic benefits like no down payment, competitive 30 year fixed rate, no PMI (private mortgage insurance), option to include closing costs, title services, legal fees in the loan amount, loans may be up to 100% of property value. There is no maximum loan amount and no reserve requirement. You are eligible for this loan program if your adjusted gross income does not exceed the moderate income limit established for the area and you plan to purchase your primary residence only.

No Income Verification (NIV)

This loan is great if you are unable to verify income with traditional documentation (e.g., if you are self-employed). NIV loans are usually designed for those who have substantial savings for a down payment. They come in all varieties and can be used to purchase a home or to refinance an existing mortgage.

No Debt to Income Ratio (No Ratio)

This is a useful option if you are carrying more debt than a traditional mortgage loan will allow. In traditional mortgage banking your debt to income ratio is one of the key factors in determining loan approval. Your debt ratio is calculated by dividing your total monthly payments by your monthly pre tax income. If your ratio is 40% or more, a traditional mortgage is very difficult without pristine credit and very substantial reserves. With a No Ratio Mortgage, no income information is included with the application so no ratio calculations are made.

No Documentation

A loan that requires little or no proof of income. These loans are offered at a slightly higher rate and generally require a 10- to 20-% down payment.

No Down Payment

If you do not have funds to use toward a down payment, this type of mortgage gives you the opportunity to finance 100% of the home's purchase price. However, credit requirements for these kinds of programs can be quite stringent, for those with high credit ratings only. Minimum closing times tend to be longer than with conventional mortgages, so these programs are not for homebuyers who need to close quickly.

Refinancing

The repayment of a debt from the proceeds of a new loan using the same property as security.

Home Equity Loan

A home equity loan is a second mortgage on your home. Home equity loans are a very powerful tax-deductible financial tool. Since home equity credit is a type of mortgage, it shares lower interest rates and the tax advantages of mortgages. You can borrow up to $500,000 of your available home equity for virtually any purpose, and, in most cases, 100% of the interest paid each year is tax deductible.

VA Lending

These loans are intended to encourage lenders to offer veterans mortgages with more favorable terms. VA mortgages can be used to buy, build, improve or refinance a home. These mortgages are often made without any down payment at all and frequently offer lower interest rates than are ordinarily available with other kinds of mortgages. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different from any other type of mortgage.

Bridge Loans

An interim loan typically used if you are unable to sell your current home but need money to close the transaction on a home you are buying. The bridge loan is made on your current residence to finance your new residence. The loan is paid off when your current residence is sold.

5% Down with No PMI

This is a great option that can eliminate PMI on conventional loans. Sometimes it's referred to as piggyback financing because it involves a first mortgage for 80% of the property value plus a "piggyback" second mortgage. The combination is often referred to as an 80/15/5. For example an 80/15/5 is a 80% LTV first mortgage combined with a 15% second mortgage and a 5% down payment. The advantage is when the piggyback combination results in a total lower payment. Keep in mind that the interest on a piggyback second is deductible whereas PMI is not.