Specializing in Residential mortgages and home loans

 This is the most widely used loan program and is typically favored by the seasoned buyer.  One advantage to this loan is the lower mortgage insurance (MI) rate versus the FHA MI rate if your down payment is less than 20%.  If your down payment is 20% or more, MI is not required.     

 Conventional loans are commonly used for refinancing a mortgage although it sometimes makes sense to refinance an FHA loan to another FHA loan to reduce the interest rate and save money.
 

 Call us about our JUMBO LOANS!  10% down payment programs with no mortgage insurance are available if you qualify.  More information on our jumbo loans coming soon. 

• 2022 loan limit is $647,200.  

• Lower MI rates for less than 20% down payment.  

• ​Up to 3% down payment programs are available.  

• Typically interest rates are very competitive.  

• ​Residential, first home, second home and investment properties.  

• ​Lower debt to income than FHA loans.

Conventional loans require:

• Four year waiting period after a chapter 7 or 11 bankruptcy.
• Two years for a chapter 13 from the discharge date.
• If you were unable to complete the chapter 13 bankruptcy plan and received a dismissal (the bankruptcy case was not finalized) instead of a discharge (the court accepted your case and the debt was forgiven), there is a four year waiting period.
•  A foreclosure has a seven year waiting period. 

1.   If you have an FHA loan.

  If your original down payment using an FHA loan was less than 20%, you must refinance your loan once your mortgage reaches 20% equity to drop the mortgage insurance.  The mortgage insurance will not automatically drop off.  However, if your down payment was 20% or more using an FHA loan, the mortgage insurance will drop off after 11 years.  Typically, you'll be able to save money by refinancing well before the 11 year mark. 

2.    Rate and term refinance.  

With interest rates historically low, it's a good idea to review your current interest rate.  Most people can save a full 1% by refinancing.  Do you have 22 years left on your mortgage and you don't want to extend the term?  You don't have to.  Check out 15, 20, or 25 year terms.

3.   Cash out refinance.

Low interest rates along with equity in your home means you have money sitting in your house that could be working for you.  Want to buy a car or remodel your home?  Take cash our of your home and pay your self back with lower interest rates than you'd get from a car dealer or a bank.

With all refinances, you will have costs of the loan and your escrow account to fund.  These costs can be added to the loan amount so you pay nothing out of pocket.

 A jumbo loan is a mortgage used to finance properties that exceed the conventional conforming loan limit of $548,250, as determined by the Federal Housing Finance Agency (FHFA). 

 Underwriting criteria for jumbo loans are stricter because the loans are larger and riskier for lenders. 

 Lenders may require your FICO score to be higher than 700, and sometimes as high as 720, to qualify for a jumbo loan. 

 Lenders will also consider your debt to income ratio (DTI) to ensure you don’t become over leveraged. Depending on the lender, a DTI of 45% and below is generally accepted, however, some lenders may allow higher  DTI ratios.

 You’re more likely to be approved for a jumbo loan if you have ample cash in the bank. It’s not uncommon for lenders to ask jumbo loan borrowers to show they have enough cash reserves to cover one year of mortgage payments. 

Expect to pay higher fees and slightly higher interest rates.  The larger the loan, the more risk to the lender.