Types of loan products:

Conventional:

A conventional loan is not guaranteed by the government. The private sector makes these loans available with a different set of guidelines than traditional government loans. Conventional loans are used for purchases, home improvement and refinances, and are available through MoneySafe Mortgage.​

 

FHA:

An FHA Home Loan may get you into a home with a low down payment. An FHA loan provides a government-insured loan with flexible loan options. One of the biggest hurdles that first time homebuyers face is saving up for a sizable down payment on a home. Even experienced homeowners may need to plan for a long time for a new home purchase. Fortunately, FHA loans may help some buyers get into the home of their dreams with a lower down payment.

 

FHA loans are mortgages backed by the U.S. Federal Housing Administration. Lenders, such as banks and credit unions, that provide FHA loans provide funding for home purchases while requiring a lower down payment. Buyers may get into a new home with as little as 3.5% down.

Using conventional loans, a lower down payment requires the borrower to get private mortgage insurance. This special type of insurance protects the lender just in case the borrower is not able to pay. The cost of PMI is added to the monthly payment until the amount of the loan reaches 20%. FHA loans, on the other hand, do not require PMI because they are backed by the U.S. government. Additional scrutiny is often required during the loan application process using an FHA loan.

 

What is required for an FHA loan?

Many of the same documents are required for an FHA loan that any potential lender will want to see: employment history, appraisal, debt-to-income ration. A few additional stipulations are also attached to the FHA loan process. Buyers may have to bring 3.5% of the purchase price as a down payment, more if they have a credit score below 580. FHA loans are only available for the borrower’s primary residence. Credit requirements may also be lower for FHA loans, given other factors demonstrate that the borrower is able to manage their money responsibly. Each lender looks at individual applications and may ask for additional documentation or explanations. They are often able to work with buyers with a lower credit score or shorter credit history than in other situations.

**MoneySafe Mortgage is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

 

VA:

Are you a military service member or veteran looking to buy a home? As a benefit of your service, the Department of Veterans Affairs offers unique resources to help those with military experience purchase a home with a low or zero down payment. The VA Loan is a valuable tool that military members and veterans may use to pursue home ownership. VA Loans offer flexible options as either Fixed Rate or Adjustable Rate mortgages. 

 

VA loans are available and provide the buyer the chance to finance 100% of the purchase price of the home. This means no down payment is required. It is important to note that buyers will still need to qualify for the loan. This means that lenders will look at their credit and ability to pay the mortgage. If you are in a troubling financial position, a lender may want to see you pay down debt or save up money before they are willing to give you the loan.

You may also be responsible for closing costs, such as recording the title or paying lawyers to draw up all paperwork. This is negotiable with the seller and something to discuss with your realtor before making an offer on a home.

 

The VA Loan process

A VA loan works the same as most other home purchases, with a buyer making a written offer to purchase a home under specific conditions (price, closing cost assistance, other contingencies), and then going through an approval process with a lender. The key difference with a VA loan is that the Department of Veterans Affairs requires that all homes purchased through this program meet certain habitability requirements. They will send out a home inspector and appraiser to make sure that the home is in good working order and is worth what you are paying.

 

This step may sometimes cause delays, especially if repairs are needed after the inspector looks around. Issues at the home do not necessarily mean that the buyer cannot use the VA loan, just that repairs will need to be done before the home purchase can be completed. The VA recently started offering a VA loan to be used for homes that need renovation on a limited basis.

**MoneySafe Mortgage is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

 

Jumbo:

Jumbo Home Loans can make high-end home purchases possible. If you’re considering purchasing a high-end home in Sacramento, a Jumbo or Super Jumbo home loan might be the right option for you.

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When a loan amount reaches a certain point, Jumbo and Super Jumbo Loans can offer high-end financing that a traditional loan can’t. Over the past few years, some lenders have decreased their Jumbo Loan offerings and have made them harder to obtain. At MoneySafe Mortgage, we can get you a great rate on your Jumbo Loan.

 

Why Choose a Jumbo Home Loan?

With a jumbo mortgage, you’ll get great rates even on a large home purchase. With a choice between fixed or adjustable rates, our jumbo loans offer maximum flexibility for home financing for larger loans.

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Reverse Mortgage:

A reverse mortgage loan or HECM (Home Equity Conversion Mortgage) is like a traditional mortgage which allows homeowners to borrow money using their home as security for the loan.  Also like a traditional mortgage, when you take out a reverse mortgage loan, the title to your home remains in your name. However, unlike a traditional mortgage, with a reverse mortgage loan, you do not make monthly mortgage payments. Reverse mortgages are for seniors age 62 and over. The loan is repaid when the borrower no longer lives in the home or sells the property. With a reverse mortgage loan, homeowners are required to pay property taxes and homeowners insurance, use the property as their principal residence and keep it in good condition. Reverse mortgages can seem complex but MoneySafe Mortgage is here to explain and educate you on this product. This loan has changed many lives for the better. Call us today to find out how a reverse mortgage may be right for you.

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Non-QM:

A Non-QM loan is a mortgage that doesn’t meet the requirements for a qualified mortgage (QM). The loan is a specialty product that does not meet guidelines for FHA, Conventional or VA. They allow a greater flexibility in lending since they vary depending on the private investor funding them. Some do not require income or will allow alternative types of income (bank statements, 1099 only, etc). MoneySafe Mortgage has been closing Non-QM loans for years and are experts in these products.

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What is Down Payment Assistance?

Down Payment Assistance programs are mortgage loans that that can help with down payment or closing costs at the time of closing. These are called junior loans. Down payment assistance programs can not only pay for the down payment required but also the closing costs involved in a purchase transaction. There may also be grants from your local government that do not result in the need to pay back or in a lien on your new home. MoneySafe offers a variety of down payment assistance loan options. Consult with your MoneySafe Mortgage loan professional for how much you may qualify for in your area.

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New Home Buyer information

• To learn more about the loan process and the first steps you need to take during the home buying process review our New Home Buyer page. Click here.