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Loan Programs |
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NewFED Mortgage offers a
vast array of loan programs...so many, in fact, that it can get
quite confusing.
In order to educate you
on which loan may fit you best, we've compiled a list of our
programs and definitions. You will absolutely come out of
this page having learned something.
And remember, you can
call us at any time at 1-877-NewFED-1 with any other questions you
may have. |
103% Purchase
Closing costs can be financed up
to 103% of the purchase price. Only single-family homes that will be
owner occupied are eligible. First time homebuyer status not
required and there are no income limits. |
125% 2nd Mortgage
Same as a 2nd Mortgage (see below), but this mortgage will
lend up to 125% of the value of the home. |
203k FHA Mortgage
Same as an FHA Mortgage (see below), but with the ability to
finance home improvements that are needed. One mortgage is given
based on the value plus improvements up to 115% of the future value.
These improvements must be over $5000 and can be for a new kitchen,
new bathroom, to add a garage or to structurally improve the
property. They cannot be used to add a swimming pool,
etc. |
2nd Mortgage
Subordinate to the first mortgage, these loans offer the
borrower the ability to get money for home improvement, debt
consolidation, or many other reasons without disturbing their first
mortgage. Convenient when you have a low interest first mortgage. |
80 / 15 / 5
This is a loan which carries a second mortgage for up to 15%
of the purchase price of the property. It is usually used when
wishing to avoid PMI insurance or to keep your first mortgage under
the FNMA/FHLMC limit to avoid Jumbo rates. The borrower finances a first mortgage up to the FNMA/FHLMC
limit and a second mortgage of up to 15% of the purchase price.
Other variations are 80/10/10 and 75/15/10. |
A-Through-D
Programs
These mortgages are for the credit challenged. They can vary
from slightly damaged credit to severely damaged. Whatever the
situation, we have a mortgage that will get you back on track. |
Construction
Loans
Building a new home can be an exciting prospect -- unless you
get caught up in a construction loan approval process that's overly
complicated and time consuming. With this loan, we will finance up
to 90% of the cost of land plus the costs of construction. We offer
a one-time fixed rate closing or the traditional ARM (adjustable
rate mortgage) products. |
Conventional
Traditional loan programs that usually offer competitive interest rates. Documentation and fair to good
credit are necessary. |
Credit Problems
Troubled credit? Bankruptcy? Been turned down somewhere else?
We offer loan programs for customers with credit problems. |
FHA Mortgage
Backed by the Department of Housing and Urban Development
(HUD). The seller can contribute up to 6% of the purchase
price to the buyer towards closing costs. |
Flex 97% Loans
Similar to an FHA Mortgage (see above) but without maximum
mortgage amount limitations. Must be a single family, owner occupied
home and the borrower must have a credit score of over 680. |
High Debt Ratio
Loans
Borrowers having the ratio of their monthly bills to their
monthly income higher than 50% are considered to have a high debt
ratio. Loan programs are available for these borrowers, allowing
them to finance the purchase of a home or property. |
Investor Loans
Used to finance 1-to-4 family properties that will be for
investment . Aggressively
priced, these programs have many variations such as NO DOC, LIMITED
DOC, or FULL DOC (Program Not Available in New York State) |
Jumbo Loan
Offers a 30-year and 15-year fixed rate mortgage and
competitive ARM (adjustable rate mortgage) products with full
documentation, alternate documentation, and limited documentation. |
No Income
Verification
Loans where your income is not requested or verified are stated income loans. There are several
varieties of the "no-doc" loan today. Basically, the type of loan
that is best suited for a particular borrower depends on that
borrower's situation. Some borrowers choose not to disclose
employment, income or asset information, while others may be willing
to disclose employment and asset information but not income. Still
others might be willing to disclose even income but select a program
that doesn't calculate debt-to-income ratios, allowing those
borrowers to exceed traditional guidelines in order to qualify for a
larger mortgage amount. With all the different variations of the
no-doc loan, there is definitely a mortgage program for today's
non-conventional borrowers. |
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If you need further
assistance with program definitions and details, do not hesitate to
call us! We are available 24 hours a day, 7 days a week at
1-877-NewFED-1. |
