Finance Options

Conforming Loans are those that meet Fannie Mae and or Freddie Mac underwriting requirements. In other words, income, credit, and property requirements must meet nationally standardized guidelines. Conforming loans are subject to loan amount limits that are set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These limits vary based on the region in which the subject property is located and the number of legal units contained in the subject property.

The interest rate on a fixed-rate mortgage remains fixed for the life of the loan, and monthly payments of principal and interest payments never change. The most common fixed-rate terms include the 30-year term, 20-year term, and 15-year term. Generally, the interest rate will be lower with a shorter term, but the principal and interest payments will be higher.

The main difference between an adjustable-rate mortgage (ARM) and a traditional fixed-rate mortgage is that the interest rate changes with an ARM. It changes according to a set of formulas (typically one year) for the life of the loan. Usually, your monthly payment changes with the interest rate.

The Federal Housing Administration is a division of the U.S. Department of Housing and Urban Development, commonly called HUD. FHA loans were created to provide affordable mortgages to the average homebuyer. The federal government insures FHA loans or guarantees participating lending institutions against loss from default on qualifying loans.

Veterans Administration loans were created to help US Military veterans finance the purchase of their homes with favorable loan terms. For the VA program, “veterans” includes active duty service personnel and certain categories of spouses. Like FHA loans, the federal government insures VA loans or guarantees VA-approved lending institutions against loss from default on qualifying loans.

Jumbo loans are those that exceed the loan amounts allowed by FNMA and FHLMC.

For mortgages that don’t meet traditional secondary market standards, TEG will look at the big picture and may still be able to provide a solution.

A home equity line of credit loan is a line of credit that is secured against real estate. The credit line amount depends upon the subject property’s equity. Lines of credit are typically designed for borrowers who intend to repay the borrowed funds within a short period. Equity lines of credit are processed and underwritten similarly to traditional mortgages; however, lender guidelines vary widely.

Including 203K Streamline, 203K Full and FNMA Homestyle.

A Construction Loan is a short-term loan used to finance the construction of a home. It allows you to build your home from scratch and convert your loan to a traditional mortgage once construction is complete.

A bridge loan is a short-term mortgage loan used for temporary financing. It can be used to bridge the gap during the transitional period when you want to purchase a new home while waiting for your current home to be sold.

Lot loans finance a parcel of land on which you want to build a home.