LoanPrograms:


A] Conventional Loan:

These loans may be conforming and non-conforming.  Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities then sell to investors. Fannie Mae and Freddie Mac guidelines establish the maximum loan amount , ​borrower credit and income requirements, down payment, and suitable properties. 


B] FHA Loan:

The Federal Housing Administration of "FHA" is a government program and part of the U.S. Dept. of Housing and Urban Development (HUD) which administers various mortgage loan programs. These loans have lower down payment requirements and are easier to qualify than conventional loans and most of the time has lower interest rates. However, they require Upfront Mortgage Insurance Premium fees. FHA has it's own statutory loan limits as well.


C] VA Loan:

Another government loan which is guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service personnel to obtain home loans with favorable loan terms, usually with a ZERO down payment. It is easier to qualify for a VA loan than a conventional loan. VA determines your eligibility and, if you are qualified, VA will issue you a Certificate of Eligibility to use in applying for a VA loan.


D] USDA Loan:

A government loan that has NO NEED for down payment and reserves. In order to be eligible, borrower's household income must meet certain guidelines. Also, the home to be purchased or served must be located in an eligible "RURAL AREA" as defined by USDA.


E] Local Housing Programs:

Many counties and cities provide low to moderate housing finance programs, down payment assistance programs tailored specifically for a first time buyer. These programs are typically more lenient and often times with lower upfront fees. However, this type of loan is not a year round program. 


F] Home Equity Loan:

This type of loan is where the borrower uses the equity of his/her home as collateral. The equity is often used to finance major expenses such as home improvements, repairs, medical bills, paying off credit cards, auto loans, or college education. A home equity loan creates a lien against the borrower's house and reduces actual home equity.


G] Hard Money Loan:

This is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued by private investors or companies with interest rates higher than conventional commercial or residential property loans because of the higher risk taken by the lender. These loans are used for projects lasting from few months to a few years to borrowers with distressed financial situation, such as arrears on their existing mortgage, or where bankruptcy and foreclosure proceedings are occurring. Typically, the biggest loan one can expect would be between 65% and 75% of the property value.