Loan Types

Loans under $802,650 (1 unit); $1,027,750 (2 unit); $1,242,250 (3 unit); $1,543,900 (4 unit) that require mortgage insurance over 80% LTV.  

Conventional credit guidelines are the most restrictive outside of Jumbo loans.  

Wait Periods: 

Bankruptcy (4 years)

Foreclosure (7 years) 

Short Sales (4 years)

Require a minimum 620 FICO. 

Investment properties require a minimum 15% down payment. 

Owner Occupied, 2nd Home and Investment options available.

Bank Statement Loans (business or personal) have become widely used in the self-employed borrower arena of NonQM (Non-Qualified Mortgage) Loans.  

Bank deposits, less an expense factor, are used as qualifying income rather than tax returns, saving some borrowers thousands of dollars in IRS tax liability, had they been required to show more income to qualify.  

Investment properties normally require 20% down payment or more.  

Owner Occupied, 2nd Home and Investment options .

DSCR stands for Debt Service Coverage Ratio 

and has become one of the most popular NonQM programs amongst the investor community.  

DSCR loans allow for a property's income vs. debt ratio, alone, to be the primary qualifying factor along with FICO and reserves.  

The Coverage Ratio is calculated by dividing the rental income by the total mortgage payment on the property (Principal, Interest, Taxes, Insurance, HOA).

This program has allowed investors with good credit and assets  - but no job, no income and no employment - to participate in the investment property arena. 

DSCR loans normally require a minimum of 20% down payment and a minimum coverage ratio of .75-1.0.  

Investment properties only.  

FHA has some of the most lenient credit guidelines to ensure that borrowers can qualify  - e.g. shorter time frames for Bankruptcy (2 years), Foreclosure (3 years) and Short Sales (3 years) compared to conventional loans. 

Minimum 3.5% down payment.    

Max loan amount varies based on the county where the property is located. Otherwise, FHA loans are where most lenders vary in guidelines, FICO, debt ratios, etc.  

Minimum FICO is 500.  Scores under 580 require 10% down payment.  Borrowers with no credit or no credit scores may also be eligible.   

Owner Occupied Only.

A HELOC (Home Equity Line of Credit) is typically a 2nd mortgage used to access the equity in your home.  You can borrow and pay back funds like a credit card and only pay interest on the amount you use.  Most HELOCs max out @ 70% LTV on investment properties.   

Closed-end 2nd mortgages (HELOAN) offer another option to tap into equity for debt consolidation or cash out to purchase other properties.  

In some cases, LTVs for a HELOAN can go higher than a HELOC.  

Minimum FICO is 680 for both.  

Owner Occupied, 2nd Home and Investment options.  

JUMBO Loans are traditional loans for amounts over the conventional max of $766,550 or high-balance limits for some counties.  

Tighter guidelines and higher FICO requirements. Higher down payments required along with lower debt ratios and higher reserves. 

Much of the Jumbo lending space has been taken over by NonQM which lends higher loan amounts (1.5M or more) while also allowing increased debt ratios and lower FICO requirements than traditional jumbo lenders.  

Owner Occupied, 2nd Home and Investment options.  

This is the category where your loan ends up when it doesn't fit in the other boxes - e.g. from DSCR, bank statements, No Ratio, W2/1099/P&L Only, non-warrantable condos, ITIN etc. 

Non QM is a "catch-all" category for property, income, employment or credit issues that don't meet traditional lending guidelines. 

Non-QM has started to take over the 2nd home, investment property and jumbo space with more lenient guidelines and competitive pricing.  

Loans under 80% LTV are where NonQM really gets rolling. 

Owner Occupied, 2nd Home and Investment options.  

U.S. Department of Agriculture 100% loan with income and demographic restrictions.  Low upfront guarantee fee and monthly mortgage insurance factors. 

No max loan amount but typically caps out under $400,000 due to income limits.  

USDA has some of the more lenient credit guidelines to ensure that borrowers qualify, including shorter time frames for 

- Bankruptcy (3 years)

- Foreclosure (3 years)

- Short Sales (3 years)

- student loan payment calculations, etc. 

Minimum 640 fico. 

If you qualify, it's the 2nd best loan to VA.  

Owner Occupied Only.

The best of the best for our U.S. Veterans,  Servicemen/Women and Members of the National Guard

U.S. Department of Veterans Affairs 100% Loan with no mortgage insurance.  Disabled veterans are exempt from VA Funding Fee and, in most counties, property taxes.  

VERY lenient guidelines for credit, income and debt ratios.  

No max loan amount.  Literally . . . $0 Down to infinity if you can qualify for the payment.  

VA will allow a 100% cash out refinance on your primary residence.  

The Best Loan Available On The Market.  

Owner Occupied Only.