Loan Programs

There are many different types of loans designed specifically for several categories of borrowers.

  • Conventional & High Balance Loans
    →These are the standard loans that adhere to FNMA or Freddie Mac guidelines. The rates are subsidized by government bond buying, hence keeping rates low.  Here are the maximum loan amounts for this type of loan. Most loans today come under this category.  More info.
  • Jumbo Loans
    →Since the mortgage meltdown, these loans can no longer be sold as securities on Wall Street. The lender must keep these loans in house or find “investor” buyers. These loan amounts are anything over the Conforming amounts found in the loan limit table. For more info.
  • FHA
    →These loan amounts are the same as Conventional Loans. The approval of the borrower is more lenient but the approval of the property may be more difficult, especially for condos or rundown homes. More info.
  • Non QM
    →Non QM loans are outside-the-box.  There are many borrowers who are extremely qualified but do not fit into the rigid guidelines of the above loans. These loans are in extremely high demand, especially for those who are self-employed. They usually are available up to several million dollars but are  also offered for smaller loan amounts.
    NON QM loans require different documentation from standard applications. (See  “Specialty Programs“.)

There are also some loans that are specifically for refinancing your home, including:

  • HARP II
  • FHA Streamline
  • VA IRRRL

Which loan is right for you is determined by:

  • The amount of your down payment
  • Your occupation and income, and
  • Your long-term outlook on holding this property.

While every loan is slightly different from the next, the following documents will likely be requested for all QUALIFYING loans.

  • Most recent two years’ Federal Tax returns “1040s”. (Corporate taxes if you file a separate return)
  • Most recent two years’ W-2 forms and/or K1s as applicable
  • Most recent 30 days’ paystubs
  • Most recent two months’ bank statements for all bank accounts which will be used (all pages)
  • Most recent copy of your current mortgage statement(s)
  • Most recent property tax bill(s)
  • Most recent HOA statement(s)
  • Copy of current Driver License or California ID
  • Copy of Social Security Card
  • Copy of any divorce decree from a previous marriage

What Questions Will I Need to Answer?

There is certain information which will be needed when applying for a purchase loan. A short list is provided below:

  • Legal name
  • Employment history for the past two years
  • Length of time in line of work
  • Job title
  • Income
  • Expenses
  • Down payment
  • Address history for the past two years