Finding The Right Loan Program

Your lender will help you find the right loan program to fit your specific needs. Here is an overview of the different programs we use to finance your property.

Conventional

This type of loan is a mortgage that is not part of a specific government program, such as FHA, USDA, or VA loan programs. 

 

The benefit of a conventional loan are the interest rate and loan terms. People typically choose a fixed-rate loan so they don't have to worry about rising mortgage rates.

There are 3 factors to getting qualified for this type of loan. Downpayment, Debt to income ratio, and credit score. 
 

Reverse Mortgage

This type of loan is also known as the home equity conversion mortgage (HECM). It is for homeowners 62 or older that want to use their home equity to supplement retirement income. 

 

There are no monthly payments to make with this type of loan, but taxes and insurance are still applicable to the property. 

 

You must meet with a HUD-approved counselor before obtaining a reverse mortgage to determine if the product is suitable for your needs. The counseling sessions will help you understand how the loan works.

FHA

This type of loan is insured by the Federal Housing Administration (FHA). It is most popular with first time home buyers due to the lower credit score requirements and allowance of lower down payments. 

 

FHA loans require mortgage insurance premiums that are calculated into the monthly mortgage payment. 

 

This loan program allows for a FICO credit score as low as 580, but there are additional conditions that need to be met. 

 

Construction/Rehab

This type of loan is used to rehabilitate a property that is in disrepair. Real estate investors commonly use these loans to purchase and repair homes that are in bad shape.

 

One of the big differences between these types of loans and traditional mortgage loans is that they have flexible terms. Most of the time you will not have to make a full mortgage payment during the loan period. Instead, you may be able to avoid making any payments or simply pay the interest that is accumulating on the loan instead.

 

VA

This type of loan is guaranteed by the United States Department of Veterans Affairs (VA). This program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses

 

The VA does not originate the loan, but it sets the rules and requirements to who may qualify. 

 

Your loan officer can assist you in requesting your  DD 214 or Certificate of Guarantee to see if you qualify to use this benefit.

Hard Money

This type of loan is also known as a short-term bridge loan. The terms of the loan are based mainly on the value of the property being used as collateral, not on the creditworthiness of the borrower.

 

The cost of a hard money loan to the borrower is typically higher compared to other loan types, but the benefits are faster access to capital, a less stringent approval process, and potential flexibility in the repayment schedule.

 

This type of loan is commonly used to prevent foreclosure on a property. 

If you would like more information on any of these loan types or to see if you qualify please contact us today

Stone Bridge Mortgage

970 Los Vallecitos Blvd Suite 222

San Marcos, CA  92069