If you want to learn more about mortgages, you’re in the right place. Read to learn the loans we used to help millions of families and investors.
A traditional mortgage loan has a very straightforward structure. You borrow at either a fixed or variable interest rate and make regular payments until the loan is repaid. Traditional mortgages generally require a minimum down payment of anywhere from five percent to 20% and a credit score of more than 700. Credit score requirements depend on individual lenders and can vary.
The great thing about these loans is that you always know how much you owe, when your loan period ends, and exactly how much your minimum payment is. If you have a great credit score and enough savings for a down payment, the traditional loan may be the best option for your next purchase or refinance.
Multifamily financing is used for the purchase or refinancing of smaller multi-unit properties with two to four units and large apartment buildings that have five or more units. Requirements include borrowers to have fairly good credit, cash on hand, a rent roll history for the property, W2 tax forms, and full tax returns if the borrower is self-employed.
Government-backed multifamily financing is available as well. They must meet standards set by the Federal Housing Administration (FHA). Government-backed multifamily loans are ideal for investors who want to live in one of their units and rent out the others. Multifamily loans are great tools for both first-time real estate investors and seasoned professionals.
Commercial real estate is income-producing property used solely for business. Examples include retail malls, shopping centers, office buildings, hotels, industrial warehouses, apartment complexes, and land zones for commercial use.
You can also use commercial mortgage loans to develop existing or new commercial property. Because not all commercial mortgage loans are the same, the requirements and criteria are different. Minimum credit score, years in business, loanable amount and terms will vary from lender to lender.
There are other types of commercial property loans beyond the conventional commercial mortgage loan that offers shorter terms and will depend on your unique business needs. These include SBA financing, bridge/swing loans, and commercial hard money loans.
The FHA Loan is a government-backed loan that requires a minimum down payment of 3.5%. It is designed for low-to-moderate income borrower’s so credit score requirements for FHA loans are much more relaxed and can sometimes be as low as 580, depending heavily on the mortgage lender.
The FHA Loan program is great for individuals and families looking to begin investing in real estate and start building generational wealth.
A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs. VA loans are one of the best methods for veterans, and eligible surviving spouses to become homebuyers. Those who are serving or have served in the military including; the Army, Navy, Air Force, Marines, Reserves and National Guardsmen are eligible to take advantage of this program.
The VA Loan is a powerful tool to help you purchase a home with no down payment (up to the county limit). Other benefits include financing the VA funding fee, no need for private mortgage insurance (PMI), and if you have a disability, you may be exempt from other fees.
We have helped many families and investors find their dream home or next investment property but we have also helped a number of people improve their credit and come back to us within 6 months to purchase. It never hurts to just check up on your credit or eligibility, we love answering questions.