A Federal Housing Administration (FHA) loan is a home mortgage that is insured by the government and issued by a bank or other lender that is approved by the agency.1 FHA loans require a lower minimum down payment than many conventional loans, and applicants may have lower credit scores than is usually required. The FHA loan is designed to help low- to moderate-income families attain homeownership. They are particularly popular with first-time homebuyers.
A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry) and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction. The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.
A reverse mortgage is a type of loan that allows homeowners ages 62 and older, typically who've paid off their mortgage, to borrow part of their home's equity as tax-free income. Unlike a regular mortgage in which the homeowner makes payments to the lender, with a reverse mortgage, the lender pays the homeowner.
2-1 BUY DOWN
A 2-1 buydown essentially allows borrowers to make a lower mortgage payment for the first two years of their loan, and payments go back up on the third year of the loan. If you're seeking ways to reduce your monthly mortgage payment before purchasing a home, a 2-1 buydown could be a potential avenue.
There are Non Qualified Mortgage (Non-QM) loans available that have more flexible rules.
When banks don’t sell their mortgages to investors, they’re free to set their own criteria — like lower minimum credit score requirements. Thus, some non-QM loans can be found with credit scores as low as 500. Mortgage brokers like us can recommend products from various lenders that might fit your needs.
Special financing is a segment of the auto lending industry for borrowers with a limited or tainted credit history. Special financing in the auto finance industry is risk based, which means that the terms of the loan are set so that the expected returns to the lender/investor are great enough to cover the risk of default by the borrower. Special financing loans typically carry a higher interest rate than is available to borrowers with a clean credit history.