The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development (HUD) created by Congress in 1934. An FHA loan is an insured loan, protecting lenders from financial risk. FHA loans are insured by the government to increase the availability of affordable housing in the United States. FHA loans have historically helped low to moderate-income earners afford homes that they typically would not have been able to afford thanks to their little money out pocket options. Owning a home is still the foundation of the American dream. FHA lending makes this classic dream a tangible reality for millions of Americans.
A traditional FHA mortgage loan tailored for first-time homebuyers used to finance a primary residence. This loan requires less stringent requirements than conventional loans, a lower downpayment, allows closing costs and downpayment assistance, and boasts a more flexible debt-to-income ratio requirement, and faster closing times.
For properties that require significant repairs, this loan is ideal for the buyer who doesn’t have the significant cash flow to modify their soon-to-be new home. This one loan combines both the home purchase and home improvements. The borrower gets funds based on the future value of the home VS the current pre-renovated home.
Rate and Term Refinance is a “no cash-out” refinance of an FHA mortgage where all costs are allocated to refinance expenses. This type of refinancing all covers the cost of liens placed on the property.
FHA borrowers can refinance their existing loan and access the remaining equity in the form of cash. This product provides a dual benefit as the homeowner receives both cash and a potentially lower interest rate.
An FHA streamline refinance allows existing FHA loan borrowers to refinance quickly and efficiently to obtain a lower interest rate. This loan option uses the same paperwork from the original loan for a quicker, seamless process.
For mortgages that exceed the county limit for FHA mortgage loans in a given zip code, FHA jumbo loans are the solution. Known by lenders as a “non-conforming loan”, requirements and costs are unsurprisingly higher for this product. and just like a traditional FHA purchasing loan, it does not allow for cash back options at closing.
Federal Housing Administration loans have more flexible requirements for potential borrowers, to keep the loan distribution to those who express a direct need and to keep those who attempt to “beat the system” out of the running. Updated FHA loan requirements include:
A conventional loan is a mortgage loan that's not backed by a government agency. They can be placed in one of two categories- conforming and nonconforming loans. Just as the root word suggests, a conforming loan conforms...follows the lending rules, guidelines, and regulations set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). However, a lender can opt for more flexible terms and conditions, and borrower requirements, this product is considered a nonconforming loan. Conventional loans are offered by private lenders such as banks, credit unions, and other mortgage lending financial institutions. Historically, conventional loans do not carry the same benefits that government-backed loans offer such as accepting moderate credit scores and allowing downpayment assistance.
Often referred to as GSE loans, conforming conventional loans although not government-backed, they do follow the guidelines of the government-sponsored enterprises Fannie Mae and Freddie Mac. When the loan amount does not exceed the limits set by the Federal Housing Finance Agency they are considered conforming.
A nonconforming loan can also be referred to as a jumbo loan because these loans exceed the loan limit amounts set by Fannie Mae and Freddie Mac. Loan limits vary depending on the US county but in most cases once the home loan amount exceeds $484,350 it is considered a jumbo loan. Nonconforming loans can also offer other more flexible terms at the lender’s discretion. If the loan deviates from the underwriting standards of these agencies the lender may not be able to sell the loan (which is a common occurrence for conforming loans) thus, nonconforming loans have much stricter borrower requirements to get approved.
Historically, conventional loans have required a 20% downpayment. This requirement with no other options available has kept millions of Americans from becoming homeowners in the past. Thankfully, conventional lending is no longer limited to a 20% downpayment requirement. A home ready and home possible loan only require a 3% downpayment. Often referred to as a “3 down conventional loan”, this loan option makes homeownership more affordable. It is important to note that while making it easier to get approved and close on a home loan this option does require PMI which increases the monthly mortgage amount. However, the PMI can be removed over time.
For borrowers with less than ideal credit, they may not get approved for a 3% down loan option. A conventional 95 loan, requires 5% down and has less stringent credit requirements. This loan product requires a minimum 620 credit score and a debt-to-income ratio of 50% or lower. A conventional 95 loan also requires monthly PMI to be paid.
Finding the perfect home that requires little to no cosmetic or structural repairs can be challenging especially in a competitive housing market. Financing a home that needs a significant amount of repairs is made possible with a CHOICERenovation loan or HomeStyle loan which allows the borrower to transform their fixer-upper by financing the purchase and renovation costs at the same time.
Conventional loans are the most common type of home loan but can be challenging to get if your whole financial picture is less than excellent. Because conventional loans are not backed by the government stricter guidelines and expectations are enforced. Updated conventional loan requirements include:
A VA home loan is a government-backed loan that offers 100% (or little money down) home loan financing to service members, Veterans, and eligible surviving spouses who wish to become homeowners. VA home loans are provided by private lenders, such as credit unions, banks, and mortgage companies. The VA guarantees a portion of the loan, enabling lenders to provide more favorable terms.
VA loans offer numerous perks and benefits compared to other traditional lending products. They are highly competitive and not surprisingly a popular choice for U.S. veterans and service members.
A government-backed purchase loan to finance a primary residence requiring little to no money down. This option uses a private lender or mortgage company.
For homeowners with an existing VA-backed home loan they can apply for a VA-backed IRRRL to help reduce monthly payments or make them more stable. Cash out is not allowed with this type of refinance loan.
This loan allows qualified homeowners to take cash out of their home equity to pay off debt, pay for school, renovate their home, or provide other needs. This product is also VA backed and provided by private lenders.
A program offering three grant options for service members and veterans with service-connected disabilities to assist them in buying or modifying a home to meet their needs.
The U.S. Department of veteran affairs sets and maintains the standards for who can apply for VA financing. In general, you must confirm one of the following in order to qualify for a VA home loan:
**You may still be able to apply if you did not serve the amount of time listed above but received an acceptable discharge.
In addition, other requirements are:
In 1999, we opened our doors as Residential Mortgage Solutions. Today, as Cazle Mortgage, we continue our same mission of helping individuals and families accomplish their financial goals. Whether you’re looking to purchase your first home, or refinance an existing property, We understand the importance of homeownership. “Dream Big. Borrow Smart” is more than just our motto, it’s our philosophy. It reflects who we are… and embodies our status as a premier lending institution. We look forward to helping you build your own dynasty, in Suffolk
One of our biggest accomplishments at Cazle is our in-house underwriting department. Unlike other lenders and banks, we have the ability to control every aspect of the loan process from application through funding. As a fully delegated Government lender, we close loans that our competitors often won’t!
We reinforce our credibility through education. Cazle takes a holistic and tailored approach to education, tying ownership and refinancing to overall financial health. The right information at the right time- for first time home buyers, second + buyers, and investors alike.
We are humans talking to humans – That means clear, concise language, and less fancy jargon. We are upfront about the journey, helping you understand how we do business and your role in the process. It’s unrealistic to qualify for a mortgage simply by pushing a button. We don’t always promise easy, but we do promise to ease the way over any obstacles.
$2,000,000,000 in loan volume (and counting). 10,000 + loans originated. 500 “5-star” reviews. 22 years as a family-first business. This is personal for us. We hold ourselves to high ethical standards as advisors, not salespeople. We recognize each situation is unique and use technology to enrich service, not replace it.
A common industry trend is to false advertise “teaser rates” that help grab a buyer’s attention. No overcharging outrageous fees or hiding them in the form of a higher interest rate.
The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development (HUD) created by Congress in 1934. An FHA loan is an insured loan, protecting ...Learn More
A conventional loan is a mortgage loan that's not backed by a government agency. They can be placed in one of two categories- conforming and nonconforming loans. Just as ...Learn More
A VA home loan is a government-backed loan that offers 100% (or little money down) home loan financing to service members, Veterans, and eligible surviving spouses who wish to become ...Learn More
with a Personal & Professional approach in Suffolk
There is no better way for us to help you build a strong fortress than for you to articulate your vision. We find that less talking & more listening helps you accomplish your goals faster.
For many, home ownership is our largest single investment and an important part of your overall financial health. We ask you about your 3, 5, 10 year financial plans and explore how to leverage your own castle for maximum value.
We don’t believe in a one-size fits all approach so we work with you to find the best type of loan, with the right terms, for your unique situation.
We'll stay by your side if you have questions about investment, vacation, rental homes, refinancing or whatever. We don’t promise it will be as easy, but when obstacles arise, we’ll work together to find the best solution and won’t stop until you’re satisfied.
We’re proud to say that 92% of all borrowers that close a purchase with us come back for their refinance loan so we are confident you will count us among your bannermen.