loan programs

 A conforming loan is a mortgage that meets the guidelines set by government-sponsored entities (GSEs) such as Fannie Mae and Freddie Mac. The qualifications for a conforming loan include:

1. Loan limit: The loan amount must be within the loan limit $806,500
2. Credit score: Borrowers must have a minimum credit score of 620 to qualify for a conforming loan. However, some lenders may require a higher score.
3. Debt-to-income ratio (DTI): The DTI is the ratio of a borrower's monthly debt payments to their monthly income. To qualify for a conforming loan, the DTI should generally be no higher than 43%.
4. Employment and income: Borrowers must have a stable employment history and sufficient income to repay the loan.
5. Down payment: Borrowers can usually make a down payment as low as 3%-5% of the purchase price, but a larger down payment may be required for borrowers with lower credit scores or higher DTIs.

It's important to note that the specific requirements for a conforming loan can vary depending on the lender and the individual borrower's financial situation. It's always a good idea to consult with a mortgage professional to determine if you meet the qualifications for a conforming loan.

FHA loans are government-insured mortgages that are designed to help lower-income and first-time homebuyers achieve homeownership. The qualifications for an FHA loan include:

1. Credit score: Borrowers with a credit score of 580 or higher can qualify for an FHA loan with a 3.5% down payment. Borrowers with a credit score between 500 and 579 may still be eligible for an FHA loan, but they will need to put down a larger down payment of at least 10%.
2. Debt-to-income ratio (DTI): The maximum DTI for an FHA loan is 55%, although some lenders may allow a higher DTI if the borrower has other compensating factors, such as a high credit score or significant savings.
3. Employment and income: Borrowers must have a stable employment history and sufficient income to repay the loan.
4. Down payment: Borrowers must put down a minimum of 3.5% of the purchase price. The down payment can come from the borrower's savings or a gift from a family member, employer, or charitable organization.
5. Property requirements: The property being purchased must meet certain requirements, such as being a primary residence, meeting minimum property standards, and being appraised by an FHA-approved appraiser.

It's important to note that FHA loans also have upfront and annual mortgage insurance premiums (MIPs) that are added to the monthly mortgage payment. The specific requirements for an FHA loan can vary depending on the lender and the individual borrower's financial situation. It's always a good idea to consult with a mortgage professional to determine if you meet the qualifications for an FHA loan.

VA loans are a type of mortgage that is guaranteed by the Department of Veterans Affairs (VA) and is available to active-duty military members, veterans, and eligible surviving spouses. The qualifications for a VA loan include:

1. Certificate of Eligibility (COE): Borrowers must obtain a COE from the VA to prove their eligibility for a VA loan.
2. Service requirements: Borrowers must meet specific service requirements, such as serving at least 90 consecutive days during wartime, 181 days during peacetime, or six years in the National Guard or Reserves.
3. Credit score: There is no minimum credit score requirement for a VA loan, but most lenders require a credit score of at least 620.
4. Debt-to-income ratio (DTI): The maximum DTI for a VA loan is typically 41%, although some lenders may allow a higher DTI if the borrower has other compensating factors, such as a high credit score or significant savings.
5. Employment and income: Borrowers must have a stable employment history and sufficient income to repay the loan.
6. Down payment: VA loans do not require a down payment, although borrowers may choose to make a down payment to reduce their monthly mortgage payment and the overall cost of the loan.

It's important to note that VA loans also have a funding fee, which can range from 0% to 3.6% of the loan amount, depending on the borrower's military status, down payment amount, and whether they have used their VA loan benefits before. The specific requirements for a VA loan can vary depending on the lender and the individual borrower's financial situation. It's always a good idea to consult with a mortgage professional to determine if you meet the qualifications for a VA loan.

USDA loans are mortgages that are guaranteed by the United States Department of Agriculture and are designed to help low to moderate-income borrowers in rural areas achieve homeownership. The qualifications for a USDA loan include:

1. Property eligibility: The property being purchased must be located in a designated rural area. You can check if a property is eligible by using the USDA's property eligibility website.
2. Income eligibility: Borrowers must have a total household income that is at or below the USDA's income limits for the area where the property is located. The income limits vary by county and household size.
3. Credit score: Borrowers must have a credit score of at least 640. However, some lenders may allow borrowers with lower credit scores to qualify if they can demonstrate a willingness and ability to repay the loan.
4. Debt-to-income ratio (DTI): The maximum DTI for a USDA loan is typically 41%, although some lenders may allow a higher DTI if the borrower has other compensating factors, such as a high credit score or significant savings.
5. Employment and income: Borrowers must have a stable employment history and sufficient income to repay the loan.
6. Down payment: USDA loans do not require a down payment, although borrowers may choose to make a down payment to reduce their monthly mortgage payment and the overall cost of the loan.

It's important to note that USDA loans also have an upfront and annual guarantee fee, which is added to the monthly mortgage payment. The specific requirements for a USDA loan can vary depending on the lender and the individual borrower's financial situation. It's always a good idea to consult with a mortgage professional to determine if you meet the qualifications for a USDA loan.

Down payment assistance (DPA) home loan programs are designed to help homebuyers who may not have enough money saved for a down payment and closing costs. These programs typically provide a grant or a loan to help cover the upfront costs associated with buying a home. Some examples of down payment assistance programs include:

1. Grants: Some state and local governments offer grants to help low and moderate-income homebuyers with down payment and closing costs. These grants do not need to be repaid as long as the borrower stays in the home for a certain amount of time.
2. Second mortgages: Some DPA programs provide a second mortgage that can be used to cover the down payment and closing costs. These second mortgages may have lower interest rates and longer repayment terms than traditional mortgages.
3. Forgivable loans: Some DPA programs provide a forgivable loan that can be used to cover the down payment and closing costs. These loans are forgiven over time as long as the borrower meets certain conditions, such as staying in the home for a certain amount of time or making timely mortgage payments.
4. Employer programs: Some employers offer DPA programs as part of their employee benefits packages. These programs may provide a loan or a grant to help employees purchase a home.

It is important to note that some programs may vary by lender, and state.  Make sure you contact your local lender to learn more about programs specific to their company and the state/states they are licensed in to determine if you qualify for the DPA loan. 

Non-QM (Non-Qualified Mortgage) loans are designed for borrowers who don't fit the standard lending criteria of traditional loans. These programs cater to self-employed individuals, investors, or those with unique income situations. Some common qualifications for a Non-QM loan include:

1. 1. Bank Statements instead of tax returns: Self-employed borrowers can qualify by providing 12-24 months of personal or business bank statements to verify income, rather than traditional tax returns.
2. 2. Debt-Service Coverage Ratio (DSCR): For real estate investors, qualification is based on the rental income of the property covering the mortgage payment, not personal income.   

It is important to note that some programs may vary by lender, and state. There are specific down payment and reserves requirements for each program. Make sure you contact your local lender to learn more about programs specific to their company and the state/states they are licensed in to determine if a Non-QM product is right for you.