Home Loan Programs
Conventional Loans
Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.
FHA Loans
It's easy to understand why many people looking for a new home are turning to FHA insured loan programs. Because FHA Loans are insured by the Federal Housing Administration homebuyers have an easier time qualifying for a mortgage. Those who typically benefit most by an FHA loan are first-time home buyers and those who have less than perfect credit.
USDA Loans
A USDA Loan is a mortgage loan that is insured by the US Department of Agriculture and available to qualified individuals who are purchasing or refinancing their home loan in an area that is not considered a major metropolitan area by USDA.
VA Loans
A VA loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs (VA) that is available to most US service members. It offers some very great benefits to those that have served our country.
NON-QM
Non-QM (Non-Qualified Mortgage) loans are home financing products that fall outside the guidelines set by the Consumer Financial Protection Bureau (CFPB) for Qualified Mortgages. Unlike conventional loans that require traditional income documentation like W-2s and tax returns, Non-QM loans offer flexible underwriting criteria designed to serve borrowers who don't fit the standard lending box, including self-employed borrowers, real estate investors, business owners, 1099 contractors, and foreign nationals. Common Non-QM products include bank statement loans (where 12 to 24 months of deposits are used to calculate income), DSCR (Debt Service Coverage Ratio) loans for investment properties, asset depletion loans, and interest-only options. These loans typically come with slightly higher interest rates to offset the additional risk the lender takes on, but they fill a critical gap in the market for creditworthy borrowers whose income picture just doesn't look clean on paper. Non-QM lending has grown significantly since its post-2008 resurgence, and it's become a major opportunity for loan officers looking to expand beyond agency-conforming business.
Down Payment Assistance
Down Payment Assistance (DPA) programs are designed to help homebuyers, particularly first-time buyers, cover the upfront costs of purchasing a home. These programs are offered through a variety of sources including state and local housing finance agencies, nonprofits, and even some lenders directly. DPA can come in several forms: grants that never need to be repaid, forgivable second mortgages that are forgiven after a set period of time (often 5 to 10 years), deferred-payment second liens with no monthly payment required until the home is sold or refinanced, and low-interest repayable second mortgages. Eligibility requirements vary by program but commonly include income limits, credit score minimums, homebuyer education course completion, and purchasing within a designated area. Some programs are restricted to first-time buyers (typically defined as someone who hasn't owned a home in the past three years), while others are open to repeat buyers in targeted communities. For loan officers, understanding and promoting DPA options is a powerful way to expand your buyer pool, especially with affordability challenges keeping many qualified borrowers on the sidelines.
Home Equity Loan
Home equity is the difference between your home's current market value and the outstanding balance on your mortgage, and it represents one of the most powerful wealth-building tools available to homeowners. As you make monthly payments and your property appreciates over time, your equity grows. Homeowners can tap into that equity through several products, including a Home Equity Loan (a fixed-rate lump sum with predictable payments), a Home Equity Line of Credit, or HELOC (a revolving credit line with variable rates that works similarly to a credit card), and a cash-out refinance (replacing your existing mortgage with a new, larger loan and pocketing the difference). Common uses for home equity include debt consolidation, home improvements, investment property purchases, education expenses, and emergency reserves. Most lenders allow borrowers to access up to 80% to 90% of their home's value minus what they owe, depending on creditworthiness and the product type. With many homeowners sitting on record levels of equity after years of appreciation, this is a massive opportunity for loan officers to re-engage their existing database and generate new transactions without waiting for a purchase or traditional refinance.
Reverse Mortgage
A reverse mortgage is a loan product designed for homeowners aged 62 and older that allows them to convert a portion of their home equity into cash without making monthly mortgage payments. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA) and accounts for the vast majority of reverse mortgages originated in the U.S. Instead of the borrower paying the lender each month, the lender pays the borrower through a lump sum, monthly installments, a line of credit, or a combination of those options. The loan balance grows over time as interest and fees accrue, and repayment is not required until the borrower sells the home, moves out permanently, or passes away. At that point, the borrower or their heirs can sell the property to pay off the loan, and if the home sells for more than the balance owed, the remaining equity belongs to the borrower or their estate. Importantly, reverse mortgages are non-recourse loans, meaning the borrower or heirs will never owe more than the home is worth. Borrowers are still responsible for property taxes, homeowners insurance, and maintaining the home.
HELOC
A Home Equity Line of Credit (HELOC) is a revolving credit product that allows homeowners to borrow against the equity in their property, functioning similarly to a credit card but secured by the home. Most HELOCs have two phases: a draw period (typically 5 to 10 years) during which the borrower can access funds as needed and usually makes interest-only payments, followed by a repayment period (typically 10 to 20 years) where the balance is paid down through fully amortized principal and interest payments. HELOCs generally carry variable interest rates tied to the prime rate, though some lenders now offer fixed-rate lock options that let borrowers lock in a rate on a portion of their balance for added predictability. Most lenders will allow a combined loan-to-value (CLTV) ratio of up to 80% to 90%, depending on credit score, income, and the property type. Common uses include home renovations, debt consolidation, large purchases, funding investment opportunities, or simply having a financial safety net in place for emergencies.
Rehab Loan
Rehab loans are a specialized mortgage product that allows buyers or homeowners to finance both the purchase (or refinance) of a property and the cost of renovations into a single loan. The most well-known option is the FHA 203(k) loan, which is backed by the Federal Housing Administration and comes in two versions: the Standard 203(k) for major structural repairs and renovations exceeding $35,000, and the Limited 203(k) (formerly called the Streamline) for cosmetic or minor improvements capped at $35,000. The Standard 203(k) requires a HUD-approved consultant to oversee the project, while the Limited version has a simpler process with less paperwork and fewer restrictions. Beyond FHA, there are also conventional rehab options like the Fannie Mae HomeStyle Renovation loan and the Freddie Mac CHOICERenovation loan, which offer more flexibility on property types and loan limits without the FHA mortgage insurance premium requirement. These products are ideal for buyers looking at fixer-uppers, investors rehabbing distressed properties, or homeowners who want to renovate but don't have the cash or equity to fund improvements separately.
