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A construction-to-permanent loan is a type of loan which allows you to build or renovate your home. When the construction process is finished, the loan converts into a traditional mortgage without you having to go through another closing process. During the construction phase, you’ll make interest-only payments, and your lender will schedule home inspections to…
Read MoreBuilding a home can be a stressful process, but with a construction-to-permanent loan you can save time and money with a one-time closing. This loan brings you through the entire process of both buying and completing construction with a single loan. Once the construction process is complete, you can work with your lender to change…
Read MoreA 2-1 buydown is a mortgage loan option where the seller or builder reduces the homebuyer’s interest rate for the first two years of the loan. This means that for the buyer, the interest rate is two percentage points less than the original in the first year, and one percentage point less in the second…
Read MoreThe current rise in interest rates has created a large affordability issue when it comes to buying a home. As a result, temporary buydowns have become an option that some buyers and sellers are considering. A 2-1 buydown is a mortgage lending program that offers a lower mortgage payment during the first two years of…
Read MoreTo get approved for a USDA loan, there are eligibility requirements a borrower must meet. In addition to the typical mortgage approval requirements such as income and credit score verification, eligibility is also based on a combination of household size and geographic location. USDA loan income limits are set at 115% of your area median…
Read MoreUSDA Loans are low interest rate and no down payment mortgages for eligible rural homebuyers. This program is ideal for low income borrowers who can’t get a traditional mortgage. When it comes to a government-backed loan such as a USDA loan, you can expect strict requirements a borrower must meet. For example, you will need…
Read MoreAn FHA loan is a home purchase and refinance loan, similar to a conventional mortgage. The difference between the two is that FHA loans feature mortgage insurance from the Federal Housing Administration. So rather than making mortgage loans to home buyers or refinancing households, the FHA provides mortgage insurance to banks, credit unions, and other…
Read MoreA Debt Service Coverage Ratio (DSCR) mortgage, allows investors to purchase or refinance a rental property without having to provide tax returns, W-2s, pay stubs, or any other personal and financial information. To qualify for a DSCR loan, the rental income generated by the property must meet or exceed the lender’s coverage ratio requirements. The…
Read MoreDebt Service Coverage Ratio (DSCR) loans allow real estate investors to qualify for a loan based entirely on the cash flow generated by the investment property, rather than their personal income. It can be used to close the mortgage on a 1-4 unit residential property as an LLC. Investors prefer this because typically they have…
Read MoreIf you currently have a VA-backed home loan and are looking to reduce your monthly mortgage payments, an interest rate reduction refinance loan (IRRRL) may be right for you. Refinancing lets you replace your existing loan with a new one under different terms. In order to be eligible, all of the following must be true:…
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