Texas 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
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.
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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