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Terms in this set (10)

FHA Loan
Qualifying Ratio 31%/43%, 3.5% down-payment, 6% seller concession

The Federal Housing Administration, generally known as "FHA," is a division of the U.S. Department of Housing and Urban Development (HUD). FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily dwellings, including some manufactured homes and hospitals.
DD214
Conventional Loan
Seller Concession = 9%

A conventional mortgage loan is a lender agreement that's not guaranteed or insured by the federal government under the Department of Veteran Affairs (VA) the Federal Housing Administration (FHA), or the Rural Housing Service (RHS) of the U.S. Department of Agriculture.Conventional loans may be "conforming" or "non-conforming." Conforming loans follow (they conform to) the terms and conditions set by Fannie Mae and Freddie MacNonconforming loans don't meet Fannie Mae or Freddie Mac qualifications, but are still considered conventional. Jumbo loans are one example of a conventional loan that does not meet Fannie Mae or Freddie Mac guidelines
VA Loan
Max Origination fee 1%, Qualifying Ratio 41%, 4% Seller concession, Up-Front funding fee 2.3% for Active Duty... 2nd usage 3.6%, Late Fee is 4% principal and int paymentWhat form does a lender use to verify an active-duty service member income? (LES) Leave and Earning StatementNOV (Notice of Value) = VA Appraisal, VA Orders the appraisal and gives you the NOVIRRRL (Interest Rate Reduction Refinance Loan) = VA Streamline refinance
USDA Loan
Seller concession is 6%
FHA Renovation 203K (Full & Limited)
Full: Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property.

Limited: FHA's Limited 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners can make property repairs, improvements, or prepare their home for sale. Homebuyers can make their new home move-in ready by remodeling the kitchen, painting the interior or purchasing new carpet.
VA Renovation Loan
The VA Renovation Loan packages two loans into one:
- A home purchase loan: This part of the loan finances the purchase price of your home, up to its current market value
- A home improvement loan: This part of the loan finances the improvements the home needs — up to $50,000 in renovation costs

This VA home renovation loan is meant to be used for purchasing properties that do not and will not meet minimum habitability requirements at the time of closing. It allows veteran purchasers to factor in home renovation and rehabilitation expenses, up to $50,000.

VA supplemental loans are used for the alteration, improvement or repair of a veteran's primary residence that is already secured by a VA mortgage.
The funds for supplemental loans can be added either to an existing loan or refinance, or the funds can be a second mortgage similar to a home equity loan.
- No luxuries like pools

Energy efficient mortgages (EEMs) are loans that let VA mortgage homebuyers (or, owners) cover the cost of energy-efficient improvements for their home. In most cases, the VA allows qualified borrowers to raise the VA loan limit up to $6,000 to finance energy-efficient upgrades
Conventional Homestyle Loan
The Fannie Mae HomeStyle Loan functions a bit differently than a regular conventional loan. The money is dispersed to pay for the home purchase at closing, but in order to use the funds for renovation, an approved contractor must submit plans to the bank for a "draw" in order to get paid. Then after inspections to ensure the work is done, the bank sends the money to the contractor. This limits fraud (homeowners and contractors using renovation loans for other things), but it is more of an administrative headache than simply using cash for home improvements.
Hard Money Loan
With hard money loans, the lender approves a borrower based on the value of the property being purchased.

The lender may do a quick check of your credit or finances, but in general, the process will be much less rigorous than with a traditional loan. This allows the process to happen more quickly so borrowers can get their money in a matter of days instead of weeks or even months.

The downside of this process is that the lender takes on significantly more risk, which translates to a more expensive loan for the borrower. Hard money loans typically come with high interest rates, and lenders might require larger-than-average down payments (though this isn't always the case).

Hard money loans also tend to have short repayment periods - often just a few years. Compare this to traditional mortgages, which commonly come with 15- or 30-year terms.
Self Employed Bank Statement Loan
A bank statement mortgage allows eligible self-employed borrowers to use bank statements to help verify income instead of tax returns. A lender will use these statements to analyze income to prove the ability to repay a loan.

Traditional loans will generally require tax returns, W-2s and paycheck stubs in order to verify a borrower's income. A bank statement mortgage loan offers self-employed borrowers a different option to verify their income without using tax returns.
Self Employed Profit & Loss / CPA Loan
The IRS requires sole proprietors to use Profit or Loss From Business (Sole Proprietorship) (Schedule C (Form 1040)), to report either income or loss from their businesses.

CPA loans and Accounting Practice loans for new and current accounting practitioners. CPA's and Accountants acquire, build, expand and refinance their business and real estate debt
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