Loan Programs

FHA Loan

A mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low to moderate income borrowers who are unable to make a large down payment. FHA loans allow the borrower to borrow up to 96.5% of the value of the home. The 3.5% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers.

What Is An FHA Streamline Refinance?

If you already have an FHA mortgage then you might qualify for a FHA Streamline Refinance. An FHA Streamline Refinance is a great way for a borrower with an existing FHA backed mortgage to reduce their interest rate, reduce their payment or possibly both.

Here are some really cool facts about an FHA Streamline Refinance:

• No Appraisal is Required – because your loan is already guaranteed by your existing FHA loan, the FHA will allow you to use your home’s original purchase price as your home’s current value.
• You can still refinance even if you are underwater – even if you owe more than your home is worth, you might still be able to get an FHA Streamline Refinance loan.
• There is no FHA prepayment penalty to worry about.
• FHA Streamline refinance rates are the same as “regular” FHA loan rates.
• Employment verification is not required with an FHA Streamline Refinance – in other words, no paystubs, no W-2s or tax returns are required for approval.
• Income verification is not required with an FHA Streamline Refinance
• Credit score verification is not required with an FHA Streamline Refinance – instead of checking your credit, your payment history is used to determine fi you qualify or not. You must have no late payments in the last 90 days and only one or less late payment within the last 12 months.

The Refinance Must Have A "Purpose"

Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance or in other words a legitimate reason for refinancing. For Example:

• Refinancing from an Adjustable Rate Mortgage to a Fixed Rate Loan.
• or Reducing your principal + interest + mortgage insurance 5 percent or more.

Your Loan Balance May Not Increase To Cover The New Loan Costs

The FHA prohibits increasing a Streamline Refinance's loan balance to cover associated loan charges. The new loan balance may increase but only by the cost of the Upfront Mortgage Insurance Premium. All other costs -- origination charges, title charges, escrow -- must either be paid by the borrower as cash at closing, or credited by the loan officer in full.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

FHA 203k Renovation Loans

Turn a Fixer Upper into Your Dream Home

When shopping for a home, you may come across properties that aren’t quite what you’re looking for but have the potential to be your dream home with some repairs or renovations. With a renovation loan, you can roll the cost of financing or refinancing a home and repairs into one loan – saving you time and money.

Limited 203(k) Rehabilitation Mortgage

In addition to funding your new home, an FHA Limited 203(k) can provide up to $35,000 (including a contingency reserve) in additional funds to help make a few non-structural repairs or renovations such as updating a kitchen or bathroom, adding new flooring, purchasing new appliances, or repairing the roof.

Standard 203(k) Rehabilitation Mortgage

If your potential dream home needs more than $35,000 in renovations or the repairs are structural, the Standard FHA 203(k) might be the right solution. This program removes the restrictions of the limited option to allow for major home remodeling. A Standard FHA 203(k) can provide additional funds* to help with eligible repairs including moving or removing walls, minor pool repairs, and landscaping.
*Final disbursement of funds is subject to final inspection.

Conventional Fixed Rate Loans

Mortgages that are not government-backed are known as conventional home loans.

They include:

• Conforming loans
• Non-conforming loans
• Jumbo loans
• Portfolio loans

Conforming loans conform to guidelines established by government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac. They buy mortgages from lenders and sell them to investors to make mortgages more available.

Non-conforming loans are loans that do not conform to the GSE guidelines.

Jumbo loans are loans that are larger than the loan limits set by the GSEs.

Portfolio loans are loans that are held by mortgage lenders on their own books. These types of loans may have features that other loans do not because lenders can set their own guidelines.

Conventional Fixed Rate loan have interest rates that don’t change for the life of the loan.

Benefits of a Fixed Rate loan include:

• The interest rate does not change for the life of the loan which provides protection from rising interest rates.
• Usually there is less documentation required than for FHA or VA loans decreasing the overall processing time.
• Typically the interest rate and APR are lower than other types of fixed-rate loans.
• These loans are available for refinancing.
• Different fixed rate period options are available, such as 15, 20 or 30 years.

Adjustable Rate Loans

With an adjustable rate loan, the interest rate changes periodically, usually in relation to an index and payments may go up or down accordingly.

Benefits of an Adjustable Rate loan include:

• Lenders generally charge lower initial interest rates, initially, making payments lower.
• The loan could be less expensive over a long period than a fixed-rate mortgage if interest rates remain steady or move lower.

Considerations of an Adjustable Rate loan include:

• There is the risk that an increase in interest rates would create higher monthly payments.
• The length of time the loan is held should be considered. If the loan will not be held for a long time, rising interest rates may not pose a major problem.

Refinance Mortgage Loans

Homeowners looking to decrease their interest rate, change their loan term, or take cash out may consider refinancing. A refinance calls for the homeowner to obtain another mortgage loan. Those funds are then used to pay off the original mortgage loan and the homeowner is then bound by the terms of the new mortgage. Depending on your situation a refinance loan could be a great option.

Along with decreasing your interest rate, refinance loans can also help you switch from an ARM to a FRM, and in some cases reduce your loan term.

Jumbo Loans

Jumbo Loans are loans that exceed the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and is not eligible to be purchased, securitized, or guarenteed by Fannie Mae or Freddie Mac. A Jumbo Loan is for mortgages more than $453,100. It also offers 30 and 15 year fixed rate mortgage and competitive ARM products with full document, alternate documentation and limited documentation.

What are the Jumbo Loans Down Payment Requirements?

For Purchase transactions Jumbo Loans require the home-buyer to put down at least 20% of the purchase price of the home. Cash out and No cash out refinance are allowable.

What types of property are eligible?

Most Jumbo loan programs allow you to purchase single family detached, Condo's, PUD's and single-family second homes can be financed with no prepayment penalty.

1ST TIME HOMEBUYERS

If you are a first time home buyer and are limited with the amount of money you have to work with there are programs available with zero down (VA and USDA), or as little as 1% to 3% down (FHA and Conventional). The interest rates and closing costs vary on these programs. Once your personal situation is assessed the right program can be determined. Mortgage insurance is required when you have less than a 20% equity in your home. This fee is added to your payment and varies depending on the loan amount, the loan to value and your credit score. The fee can be eliminated in some instances by increasing the interest rate.

Are You Self Employed?

Self-employed borrowers are unique when it comes to lending. Most lenders have recognized this and have come up with programs that best suit these types of borrowers.

We have numerous programs for self-employed borrowers. For traditional loans, sometimes the lenders may look at only 1 year tax returns for from a business owner. Some of the other self-employment programs may include:

There are many other programs that are geared toward self employed borrowers. It is best if you contact us so we can find a unique program that would benefit you.

COMMERCIAL LOANS

Growth can be one of the most difficult and rewarding parts of owning a business.

Whether you’re a new entrepreneur or a seasoned professional, smart business owners know that growth brings tremendous opportunities for profit. Your commercial property is an important aspect of growth. At New National Mortgage we’re committed to helping you get into the right commercial property for your company.

As your company continues to grow, increasing your workspace through a commercial mortgage becomes increasingly important.

More information about our commercial loan offerings can be found by contacting us via email or by telephone at 510-396-9233 . Our qualified professionals are ready to answer any and all of your commercial loan questions as well as help you begin the application process.