Loans. Your Quick And Easy Guide
You'll find a majority of the different types of loans offered in the marketplace below. If this is a bit overwhelming, fill out the form below and we can guide you to some products that will probably work best for your client.
Standard Loans
Check out loans in this section for the most widely used loans that a majority of your clients will use.
FHA
Typically used by borrowers with sub 700 credit scores who are low to moderate income.
General Requirements:
Minimum credit score: 500-580+
Minimum down payment: 3.5%
Gift Funds Allowed: Yes
Mortgage insurance: Always required
Max credits allowed: 6%
Conventional
Typically used by borrowers with great credit scores (720+) who have good and easily trackable income.
General Requirements:
Minimum credit score: 620+
Minimum down payment: 3%
Gift Funds Allowed: Yes
Mortgage insurance: If less than 20% down
Max credits allowed: 2-9%
VA
Typically used by borrowers who are active or discharged military.
General Requirements:
Minimum credit score: 550+
Minimum down payment: 0%
Gift Funds Allowed: Yes
Mortgage insurance: Never required
Max credits allowed: 4%
USDA
Typically used by borrowers who are looking to buy in rural areas and have moderate to low income.
General Requirements:
Minimum credit score: 600+
Minimum down payment: 0%
Gift Funds Allowed: Yes
Mortgage insurance: Yes
Income limits: Income limits determined by the area
Property eligibility: Determined by the rural area
Max credits allowed: 6%
Jumbo
Typically used by borrowers who are buying over the loan income limits for an area ($800k+).
General Requirements:
Minimum credit score: 550+
Minimum down payment: 5%
Gift Funds Allowed: Yes
Mortgage insurance: Usually not required
Max credits allowed: 3-6%
Renovation/Construction
For clients looking to build or update there homes. These can be used to purchase or renovate a home/land that is currently owned.
Conventional Renovation
This can be used on a purchase or home that's already owned. Basic renovations, to the studs remodel or additions are all possible.
General Requirements:
Minimum credit score: 620+
Minimum down payment: 3-5%
Gift Funds Allowed: Yes
Mortgage insurance: Required with less than 20% down
Max credits allowed: 3-6%
FHA Renovation
Similar to conventional but more accommodating for lower credit score clients. This can be used on a purchase or home that's already owned. Basic renovations, to the studs remodel or additions are all possible.
General Requirements:
Minimum credit score: 580+
Minimum down payment: 3.5%
Gift Funds Allowed: Yes
Mortgage insurance: Always required
Max credits allowed: 3-6%
One Time Close Construction Loan
Used to get draws to your contractor to build the home and then converts to a fixed loan once complete. This can often save the steps from refinancing and being subject to additional closing costs once your home is completed 12+ months out.
General Requirements:
Minimum credit score: 620+ (VA) 700+ (Conventional)
Minimum down payment: 0-5%
Gift Funds Allowed: Yes
Mortgage insurance: Required in some cases
Max credits allowed: 3-6%
Hard/Private Money
These loans are often used in flips and construction. Rates and closing costs are higher but if the deal makes sense, they can be fast and easy to qualify/close. The requirements below vary widely so please reach out with your specific scenario.
General Requirements:
Minimum credit score: May not be required
Minimum down payment: 10-40%
Gift Funds Allowed: Varies from lender to lender
Mortgage insurance: Not required
Max credits allowed: Varies from lender to lender
HELOC/2nd
Often times if you clients already own a home they will have equity they can pull out from that home. These funds can be used to renovate, build or used as a down payment on a construction loan.
General Requirements:
Minimum credit score: 620+
LTV: Can finance up to 90%
Minimum down payment: N/A
Gift Funds Allowed: N/A
Mortgage insurance: Not required
Max credits allowed: N/A
Self Employed Borrowers
When regular W2 income doesn't work, we have many ways to qualify your client.
Bank Statement Programs
We can use 3, 6, 12 or 24 months of bank statements to calculate average income for your borrowers. Ex: I previously had someone who made $6,000 per month on their tax reported income but $80,000 per month on their bank statement calculated income.
General Requirements:
Minimum credit score: 600-620+
Minimum down payment: 10-20%
Gift Funds Allowed: Yes
Mortgage insurance: Usually not required
Max credits allowed: 3-6%
1099 Programs
Provide 1-2 years of 1099s from your clients and we won't need full tax returns with expenses to qualify your client. We use a flat "expense factor" and don't look at any other client write-offs/expenses.
General Requirements:
Minimum credit score: 600+
Minimum down payment: 10-20%
Gift Funds Allowed: Yes
Mortgage insurance: Usually not required
Max credits allowed: 3-6%
Profit & Loss Programs
These clients will provide a Profit & Loss statement (typically prepared by a CPA) and we won't need full tax returns with expenses to qualify them. We use a flat "expense factor" and don't look at any other client write-offs/expenses.
General Requirements:
Minimum credit score: 600+
Minimum down payment: 10-20%
Gift Funds Allowed: Yes
Mortgage insurance: Usually not required
Max credits allowed: 3-6%
No Income Programs
Certain circumstances may lead your clients to buy without using their income or they may simply not have income showing anywhere.
DSCR
Known as Debt Service Coverage Ratio loans, we only use an appraisal and in some cases a borrower credit score to qualify. Rents would cover some or all of the monthly mortgage debt payment and your client can purchase.
General Requirements:
Minimum credit score: 620+
Minimum down payment: 15-20%
Gift Funds Allowed: Yes
Mortgage insurance: Not required
Max credits allowed: 3-6%
Asset Utilization
When you client has no income but a large sum of money in a bank, investment or other account. We can use those funds and calculate an income if they were drawn over a set amount of years.
General Requirements:
Minimum credit score: 600+
Minimum down payment: 10-20%
Gift Funds Allowed: Yes
Mortgage insurance: Usually not required
Max credits allowed: 3-6%
Down Payment/Reserves Only
We have access to a program that requires no income sources and is one of the simplest to qualify for if your clients fits the requirements.
General Requirements:
Minimum credit score: 640+
Minimum down payment: 20%
Gift Funds Allowed: Yes
Mortgage insurance: Not required
Max credits allowed: 3-6%
Down Payment Assistance
There are many down payment assistance programs available. They aren't for everyone and often are too good to be true but below are some that we recommend.
CalHFA
This is by far the most popular option. Rates aren't terrible and over cash to close can be brought down to $500-1500 if seller credits are negotiated. Assistance provided is between 3-6% of the purchase price.
General Requirements:
Minimum credit score: 640+
Minimum down payment: 3-3.5%
Gift Funds Allowed: Yes
Must be first time homebuyer: Yes
Mortgage insurance: Yes
Income limits: Determined by the area (often $200k+)
Property eligibility: 1 Unit or 1 Unit with ADU only
Max credits allowed: 3-6%
GSFA
Assistance provided is between 3-5.5% of the loan amount. Some of this assistance can come in the form of a grant that is not repayable.
General Requirements:
Minimum credit score: 640+
Minimum down payment: 3-3.5%
Gift Funds Allowed: Yes
Must be first time homebuyer: No
Mortgage insurance: Yes
Income limits: On some of the loans provided
Property eligibility: 1-4 units
Max credits allowed: 3-6%
Sapphire
An FHA program with assistance provided is 3.5% to cover the down payment. These funds are repayable.
General Requirements:
Minimum credit score: 620+
Minimum down payment: 3.5%
Gift Funds Allowed: Yes
Must be first time homebuyer: No
Mortgage insurance: Yes
Income limits: 160% of AMI
Property eligibility: 1-2 units
Max credits allowed: 3-6%
1% Down
This is an conventional program that allows borrowers to come in with just 1% down. They are still required to pay closings costs or have the seller cover it. 2% assistance is provided (up to $4,000).
General Requirements:
Minimum credit score: 620+
Minimum down payment: 3%
Gift Funds Allowed: Yes
Must be first time homebuyer: No
Mortgage insurance: Yes
Income limits: 160% of AMI
Property eligibility: 1-2 units
Max credits allowed: 3-6%
Creative/Hard Money/Private Money
The loans below are typically used in investment transactions. Purchases that plan to be flipped, short term financed or even leaving the financing in place with the new buyer taking it over. There are no specific guidelines as these loans are much more dependent on the property.
Hard Money Loans
Typically used for flips or homes that can't be financed due to their condition. These are short term loans.
General Requirements:
Minimum credit score: May not require credit
Minimum down payment: 10-30%
Gift Funds Allowed: Dependent on the lender
Mortgage insurance: Not Required
Max credits allowed: Dependent on the lender
Loan Term: 12-24 months
Private Money Loans
These can be used for flips or homes that can't be financed due to their condition but are also used for all types of home purchases with unique circumstance. They have longer loan terms in most cases
General Requirements:
Minimum credit score: May not require credit
Minimum down payment: 0-30%
Gift Funds Allowed: Dependent on the lender
Mortgage insurance: Not Required
Max credits allowed: Dependent on the lender
Loan Term: 12-360 months
Transactional Lending
These are short term loans between 1 to 60 days in most cases. They bridge the gap when a buyer is waiting for their own funds to come in or when creative finance is being used.
Creative Finance
Creative finance is a hard one to describe as there are many ways it can be used. Below are a few examples:
Taking over a mortgage that is already existing on a home
The seller carrying a certain portion of the mortgage
A hybrid of taking over a mortgage and the seller financing another portion of the mortgage
Using a private money loan for your down payment and rehab costs on a flip to fund the deal with no money out of pocket.
Foreign/Non-Resident Loans
Do you have a client who isn't a US citizen? We can help them as well.
Non-Resident/Foreign Buyers
General Requirements:
Minimum credit score: 640+
Minimum down payment: 10%
Gift Funds Allowed: Yes
Mortgage insurance: Not typically required
Max credits allowed: 3-6%
ITIN
For borrowers who don't have a social security number but credit established under their ITIN.
General Requirements:
Minimum credit score: 660+
Minimum down payment: 15-20%
Gift Funds Allowed: Yes
Mortgage insurance: Not typically required
Max credits allowed: 3-6%
Work Visa/Green Card
A majority of these borrower can apply under the conventional, FHA, jumbo and self-employment options shown on this page.
Damaged Credit
We can still help clients with low credit scores. These will often come with higher rates or a larger down payment but those niche buyers can qualify with their lower credit scores and credit events.
FHA (down to 500 credit score)
Guidelines can vary as some of these files are case by case but we are able to help clients with FHA loans even below the standard 580 credit score requirement.
General Requirements:
Minimum credit score: 500+
Minimum down payment: 10%
Gift Funds Allowed: Yes
Mortgage insurance: Always required
Max credits allowed: 3-6%
VA (550 score or lower in some cases)
Guidelines can vary as some of these files are case by case but we are able to help clients with VA loans even below the standard 580 credit score requirement. Please reach out with your specific scenario so we can get you more details.
Non-Traditional Credit
When clients don't have a credit score showing, we can use their recurring bills to generate a credit score. Most guidelines will follow Conventional, FHA and VA guidelines once a score is generated.
Recent Bankruptcy or Foreclosures
We may be able to finance clients less than two years out from bankruptcy or foreclose. Guidelines vary so reach out with your specific scenario.
Senior/Reverse
For clients age 62+ who want to purchase another home or need money from their current home.
Home Equity Conversion Mortgage (HECM)
These loans allow clients to pull money out of their current home as a lump sum, line of credit or a combination of both. No payments are required on these types of loans and they're paid back with equity in the home when the owner passes away.
General Requirements:
Be over the age of 62
Remain in the home while the loan is active
Keep taxes and insurance paid and up to date
Reverse Purchase
Reverse mortgage purchases are typically available to seniors aged 62 and older who have significant equity in their current home. This financing option can be particularly attractive for seniors who want to downsize or move to a new home, but do not want to make monthly mortgage payments.
General Requirements:
Minimum Down payment: 40-60% down (proceeds from current home)
Be over the age of 62
Remain in the home while the loan is active
Keep taxes and insurance paid and up to date
2nds/HELOCs
Are your clients calling to look into remodeling their home but need cash? Maybe they can pull equity and purchase a second home/investment property. A second mortgage or HELOC can help them achieve these goals.
HELOC (Home Equity Line Of Credit)
The easiest way to explain these loans as are credit cards on your home. The major plau side is these don't have credit card rates and monthly payments are much lower. If you don't use the line, you don't have a payment but still have full access when you're ready.
General Requirements:
Minimum credit score: 620+
LTV: Can finance up to: 90%
Minimum down payment: N/A
Gift Funds Allowed: N/A
Mortgage insurance: Not required
Max credits allowed: N/A
Stand Alone 2nd
These are similar to HELOCs and allow home owners to use equity from their home. The big difference is the equity is pulled out all at one time. This usually allows for a lower fixed interest rate.
General Requirements:
Minimum credit score: 620+
LTV: Can finance up to: 80-90%
Minimum down payment: N/A
Gift Funds Allowed: N/A
Mortgage insurance: Not required
Max credits allowed: N/A
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See what our clients have to say.
Angel Callejas
We had gone to our credit union and a bank for help with our home loan and these institutions made it very clear that there wasn’t much they could do to assist us.
We then had the pleasure of being introduced to and working with Jeremy Williams.
We would whole heartedly recommend having him as your mortgage broker if you are in the market to buy a new home.
Ashley Wetmore
This was my third time going through this process and I have to say it was hands down the most seamless and stress-free experience I've had. A night and day difference from what I'm used to. Jeremy and his team are reliable, available and know what they're doing. I'd highly recommend them to my family and friends.
Reza Mahvi
Jeremy was so helpful and easy to work with! You will not be disappointed when working with him .He goes out of his way to make the whole house buying process easy! He was really great at helping us buy our first home using my VA loan!
Micaela Van Dine
I can't say enough great things about Jeremy and his team. We went through 3 other loan agents and were presented with misleading information. Just as we were about to give up on trying to buy a home until Jeremy followed up (we spoke briefly last year but we weren't ready to buy yet). He set us up with his trusted agent and we found our dream home. 21 day escrow!
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