Conventional loans, also known as conforming loans are the most popular type of mortgage and are backed by Fannie Mae and Freddie Mac, two government sponsored enterprises that support this type of financing. These loans are most attractive for applicants with better than average credit, can provide at least 3% of the purchase price for a down payment, and want to purchase outside of FHA loan limits.
FHA loans are mortgages that are insured by the Federal Housing Administration and are a great option for applicants who have less than perfect credit, higher debt-to-income ratios or smaller down payments. FHA loans are very popular with first time home buyers and can be used with a home purchase or a refinance. FHA loans receive very low interest rates. However, they have a set amount of mortgage insurance, and unlike conventional loans, there is no risk-based pricing mode.
The KC Mortgage Duo are refinancing experts who can guide you through the sometimes, confusing process, advising on the best program to meet both your long and short-term goals. We offer rate and term refinances, streamlined refinance, interest rate reduction loans, cash out refinance, renovation refinances and more.
Veterans and active duty receive incredible benefits from a VA Home Loans. VA loans are mortgages that are insured by the Veterans Administration and available to active duty, veterans, and their spouses. Borrowers will generally have less stringent credit requirements and, in most cases, are not required to make a down payment. VA loans have very attractive interest rates and no monthly mortgage insurance requirements.
USDA loans are mortgages that are insured by the US Department of Agriculture and focus on properties located in rural areas. The USDA determines specific areas of the country, based on population, and opens up the opportunity for those areas to benefit from homeownership.
Renovation loans allow for the homeowner or buyer to upgrade or repair a property within one loan. The home is appraised as-complete, meaning that the value is derived from the market value of the home after it is repaired and/or upgraded. Renovation loans come in several different packages and can be used with virtually any type of loan product (conventional, jumbo, FHA, USDA, etc.).
We cannot stress the point enough: it is imperative that clients work with a condo mortgage expert in order to navigate a sometimes difficult transaction. Condos, although they can be financed with every loan type available, have very intricate requirements that are based on the property itself and how it is managed.
Bank Statement Loans
Bank Statement Loans, also known as self-employed mortgages allow you to secure a mortgage without the documentation you would normally use to verify your income, such as W-2’s and tax returns. These loans are largely used by entrepreneurs and others who might not have consistent income or find it difficult to verify their income. A lender will determine an average of the deposits over the 12 or 24- month period to determine the applicants qualifying income for a mortgage loan.
Down Payment Assistance Loans
DPA Advantage is a down payment assistance program which is offered by a governmental entity. This nearly nationwide program is available in Missouri and Kansas and is designed to provide down payment assistance in the form of a grant equal to either 2% or 3.5% of the purchase price to a wide variety of eligible borrowers.
One-Time Close Building Loans (OTC)
The One-Time Close Building Loan Program (OTC) offers an all-in-one financing option for lot purchase, construction and permanent mortgage funding with one closing. Because the permanent loan is closed before construction begins, there is no need to re-qualify the borrower, simplifying the construction and purchase process.