Cleveland Mortgage Home Loans Types

Conventional Mortgage Loans
Any mortgage loan other than a VA or an FHA loan. A conventional loan may be conforming or non-conforming.

Conforming Mortgage Loans
A loan that conforms to the guidelines established by Fannie Mae or Freddie Mac is considered a conforming loan. These guidelines establish the maximum loan amount, down payment, borrower credit & income requirements, and suitable properties. Conforming loans make up the majority of loans in the U.S.

Non-conforming Loans
A loan that does not conform to the guidelines established by Fannie Mae or Freddie Mac is called a non-conforming loan. Here is a sample of what we can offer you:

• Jumbo loans (a loan that is larger than the conforming loan limit)
• Second mortgage loans
• Credit lines
• Homes equity loans
• Home Improvement loans

Fixed Rate Mortgages
We offer a large selection of fixed rate mortgages. Here are some of the most common:

• 30 (fixed rate usually the same as 30 years)
• 20 year (fixed rate is either the same as a 30 year or slightly lower)
• 15 year (lower rate of interest than 30 year)
• Buy Downs

Adjustable Rate Mortgages
We have several adjustable rate mortgages available. The rates are a certain percentage above various fund indexes. The following are some examples:

• 6 month ARM adjusts every six months usually with a 1% cap per adjustment and a 6% lifetime cap. The caps vary from program to program.
• 1 year ARM adjusts annually with a 2% cap per adjustment and a 6% lifetime cap. The caps vary from program to program

Delayed Adjustable Rate Mortgages
The following are examples of programs that are fixed for a period of time then adjust.

• 10 year fixed, converting to a 1 year ARM.
• 7 year fixed, converting to a 1 year ARM
• 5 year fixed, converting to a 1 year ARM
• 3 year fixed, converting to a 1 year ARM.

The above 10,7,5, and 3 year fixed usually have a lower rate of interest than 30 year fixed, but payments are amortized over 30 years then are 2.5 to 3% above the 1 year Treasury Bill rate (what our Federal Government pays for a 1 year loan)

Jumbo and Super Jumbo Loans
Five year interest only program: This program is one of the most aggressive in the "Jumbo" market. It is interest only for 5 years, usually around 2% under the prime rate. This program is available for purchase or re-finance, minimum loan amount of $240,000 and maximum of $2,000,000.

For borrowers purchasing or refinancing more expensive homes, we have several options. A loan is called "Jumbo" when it is in excess of $240,000* and "Super Jumbo" when it is in excess of $650,000*. Each one of these categories has different underwriting requirements. However, No Income Verification, No Asset Verification and 100% loans are available as well as traditional loan to value ratios up to 90% on Jumbos and 80% on Super Jumbos.

*Subject to changing FNMA guidelines.

Purchase + Remodel
Purchase + is a program that uses the equity (difference in purchase price and appraised value) to finance renovations to a home you are buying. There are various ways to help you accomplish your goals using a first lien with one time close or a second lien.

Portfolio Loans
Loans may be sold on the secondary market to Fannie Mae, Freddie Mac or a select number of conduits (e.g. GE Capital) or they may be kept in the banks portfolio. Portfolio loans may have more flexible qualifying criteria, while salable loans have to meet an investors criteria.

Commercial Loans
Loans are available on multi-family apartments, office, industrial, and retail developments. Loan to Value ratios to 80%, investor or owner occupied. We have limited sources for raw land loans depending on how soon you will build or if land has an existing home.

100% Financing
Typically, the customer in the upper income brackets who needs some additional mortgage interest tax relief is a prospect for this type of loan. In addition to a VA loan, the following options are available to the qualified borrower:

1. We have a 100% program that requires no mortgage insurance. It does not allow seller contributions and requires a minimum credit score of 700. This type of loan is offered and withdrawn with the whim of our investors. Call first.
2. 80% first lien note with a 20% second at a higher rate of interest. This program is also available to borrowers with "less than perfect credit"
3. Borrower may deposit 25% of the purchase price in a Certificate of Deposit and be eligible for a 100% loan. When you make BI-weekly payments and let the interest income apply toward your mortgage loan, you can develop 25% equity in about seven years (assuming the value of the home remains stable).
4. The Borrower, a relative or a friend can pledge 35% of the purchase price with securities in a brokerage account.

Some of these programs have specific credit score and other underwriting requirements.

Investor Loans
I have loan programs available for investors in residential property.

The following are some examples of those programs:

1. 90% loan-to-value with mortgage insurance and only .75% above our conventional rate
2. 80% + with no mortgage insurance and a minimum credit score of 620.

Most of these programs limit you to seven financed properties. However, some will allow up to nine.

Self Employed & No Income Verification
Documenting a borrower’s income on a conventional loan is simple for a salaried employee paid with a W-2. For a self-employed borrower, the usual way to document income is through federal income tax returns. Net income figures are used to determine the loan amount of the borrower’s mortgage, sometimes showing much less income available to qualify.

I offer several different types of financing specifically designed to make the mortgage loan experience a little easier for the self-employed borrower. This is called a No Income Verification loan (NIV). NIV loans come in a vast array of down payment and loan term options. An NIV loan simply states the income on the application without using tax returns to support it. A full credit report and appraisal is done and the interest rate is typically a little higher.

Some NIV loans require the borrower to sign IRS form 4506 or 8821 which allow lenders to request your tax returns directly from the IRS. New Partners has many loan programs that do not require these forms. Our NIV programs start with as little as 5% down. Please keep in mind, however, the more you put down, the more favorable the loan terms will be.

I also have available programs that do not require verification of assets. These types of programs are perfect for individuals who may not wish to disclose all of their assets. If you have had difficulties in the past obtaining mortgage financing because of insufficient income, a No Income Verification loan may be your answer.

Please call today for a free analysis of your mortgage needs.

Construction Loans

• One Time Close: The permanent or "long term" financing is arranged before the lot is acquired and construction begins. Then, we contact one of our 3 interim lenders and arrange for the construction loan. Our interim lender funds the lot purchase (if necessary) and funds the construction of the home in "draws" as the builder needs them. Your down payment is made at the beginning of this process. When construction is completed, we close the loan with the pre-selected permanent lender and the customer moves in.
• Lot Loan:  We can arrange a lot loan and then an interim construction loan or arrange for you to "hold" the lot for a period of time.

Part Time Farm and Full Time Farm Loans
Special program for working farms qualify on operations and borrowers income. Hobby type farms need strong borrower and are treated like a home loan. For 25 acres and up

Home Equity Lines of Credit when processed and closed in conjunction with a new first loan can be at no additional cost. Easy two at one time close.

Summary
Through the many lenders that represent, we have the right loan for every borrower.
Let us tailor make a cleveland mortgage loan package that is just right for you.