Conventional Loans

Conventional Purchase Loans

Qualified borrowers can enjoy a range of options and outstanding benefits with Success Mortgage Partner’s conventional loans. Unlike FHA and other government loans, which may impose property limitations, conventional loans offer the flexibility to be utilized on almost any property type.

Looking for a program that requires a lower down payment? 

Fannie Mae HomeReady might be right for you. HomeReady is a program that offers fixed-rate mortgages for affordable housing, specifically designed for individuals with low-to-moderate incomes. You can qualify with as little as a 3% down payment or get financing for up to 97% of the home’s value.

(Blue underlined text should link to our Fannie Mae HomeReady page)

Perks of Qualifying for a Conventional Loan:

  • A range of down payment options
  • Advantages for higher down payments
  • Option to eliminate mortgage insurance with a 20% down payment.
  • Financing for properties commonly restricted by government loans

New Construction

Whether you’re a first-time homebuilder or an experienced contractor, our new construction loan process is designed to meet your unique needs. With Success Mortgage Partners by your side, you can trust that your financing will be in capable hands, providing you with peace of mind and allowing you to fully enjoy the journey of bringing your vision to life.

Navigating the world of new construction homes can be a daunting task, especially when it comes to securing the right financing. Many mortgage lenders struggle to comprehend the unique needs of the building community, often resulting in a cumbersome and frustrating experience for prospective buyers. However, at Success Mortgage Partners, we’ve dedicated ourselves to understanding the intricacies of new construction loans and streamlining the entire process.

New Construction Loans We Offer*

  • Construction to Permanent
  • Conventional Purchase
  • Federal Housing Administration (FHA)
  • Fannie Mae HomeReady Mortgage
  • Jumbo loans
  • VA loans
  • Condo loans

*Manufactured houses are not eligible for new construction at this point

FHA

Federal Housing Administration Loan

If you’d like to purchase a home but face challenges such as limited credit, insufficient down payment, or inability to cover closing costs, an FHA loan could be the answer. The purpose of FHA financing is to offer homebuyers an alternative to conventional loans, providing attractive and flexible guidelines to facilitate the homebuying process.

Discover additional details regarding this program and the eligibility criteria by consulting with your loan advisor at Success Mortgage Partners.

  • Low 3.5% down payment
  • 100% gift funds – the entire 3.5% down payment can be a gift from parents, relatives or an employer.
  • FHA allows seller to give up to 6% of the home’s purchase price to an FHA buyer to pay for closing costs and pre-paid costs.
  • Flexible credit qualifying – because it is government-backed, it’s possible to qualify for an FHA loan with a lower credit score than on conventional loan programs.
  • Upfront mortgage insurance may be financed or paid in cash.
  • May also be an option for borrowers with limited equity looking to refinance.
  • Ability to choose from a fixed-rate or adjustable rate.

VA loans

VA Purchase & Refinance Transactions

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) that is available to most U.S. service members. VA loans offer a loan guaranty benefit to help eligible veteran borrowers refinance or buy a home.  VA loans do not require any monthly mortgage insurance included in the loan amount, and a veteran borrower could purchase a home without a down payment.

VA IRRRL

The VA Interest Rate Reduction Refinance Loan (IRRRL) lowers the veteran borrower’s interest rate by refinancing their existing VA home loan.  With a lower interest rate, the monthly mortgage payment should decrease.

VA High-Cost Counties

Although the VA loan program does not have a maximum loan amount, there are effective loan limits for high-cost counties throughout the United States.  The limits are derived by considering the median home price for a county and the Freddie Mac conforming loan limit.

Contact one of our licensed loan officers today to apply!

You may be eligible for a VA loan if any one of these statements describes you:

Basic Eligibility Requirements

General Rule for Eligibility

  • A veteran is eligible for VA home loan benefits if he or she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940, and was discharged under conditions other than dishonorable after either:
    • 90 days or more, any part of which occurred during wartime, or
    • 181 continuous days or more (peacetime)
  • 2-year requirement:
    • A great length of service is required for veterans who:
      • enlisted (and service began) after September 7, 1980, or
      • entered service as an officer after October 16, 1981.
      • 24 continuous months of active duty, or
      • the full period for which called or ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days (peacetime)
  • Cases involving other than honorable discharges will usually require further development by Va.
  • This is necessary to determine if the service was under other than dishonorable conditions.

Wartime & Peacetime

  • Wartime and peacetime refer to the following periods of service:

Wartime Peacetime
World War II

 

9/16/1940-7/25/1947

Post-World War II period

 

7/26/1947-6/26/1950

Korean conflict

 

6/27/1950-1/31/1955

Post-Korean conflict

 

2/1/1955-8/4/1964

Vietnam Era

 

8/5/1964-5/7/1975

(The Vietnam Era begins 2/28/1961 for those individuals who served in the Republic of Vietnam.)

Post-Vietnam period

 

5/8/1975-8/1/1990

Persian Gulf War

 

8/2/1990-date to be determined

 

Eligibility for Reserves and/or Guard

  • Members of the Reserves and National Guard who are not otherwise eligible for loan guaranty benefits are eligible upon completion of 6 years’ service in the Reserves or Guard (unless released earlier due to a service-connected disability).
  • The applicant must have received an honorable (a general or under honorable conditions is not qualifying) discharge from such service unless he or she is either:
    • in an inactive status awaiting final discharge, or
    • still serving in the Reserves or Guard.

Eligibility of Spouses of Veterans

  • Some spouses of veterans may have home loan eligibility. They are:
    • the unmarried surviving spouse of a veteran who died as a result of service or service-connected causes,
    • the surviving spouse of a veteran who dies on active duty or from service-connected causes, who remarries on or after age 57 and on or after December 16, 2003, and
    • the spouse of an active-duty member who is listed as MIA or a POW for at least 90 days.
      • Eligibility under this MIA/POW provision is limited to onetime use only.
    • Surviving spouses of veterans who died from non-service-connected causes may also be eligible if certain conditions are met. Refer to Application for Unmarried Surviving Spouses section above.

Other Qualifying Service

  • Congress has periodically granted veteran status to groups other than members of the Army, Navy, Marine Corps, and Coast Guard, such as
    • certain members of the Public Health Service,
    • cadets at the service academies,
    • certain merchant seaman, etc.
  • Lenders should contact the Eligibility Center for assistance when one of these unique cases is encountered.

Exceptions to Length of Service Requirements

  • There are numerous exceptions to the length of service requirements outlined in this section.
    • For example, one day of service is sufficient for an individual who is discharged or released from service (regular active duty or Reserve/Guard) due to a service-connected disability.
  • Because of the complexity and number of exceptions, this chapter does not attempt to cover all of them.
  • Because there are exceptions, lenders should not assume a veteran is not eligible.
  • Instead, they should make application and allow VA to make a formal determination of the eligibility.
  • I served 181 days during peacetime. (Active Duty)
  • I served 90 days during wartime. (Active Duty)
  • I served 6 years in the Reserves or National Guard.
  • I am the spouse of service member who was killed in the line of duty.
  • I currently receive disability payments from the VA.

Benefits of VA Loans

  • You can buy a home with no money down.
  • You can refinance your home up to 100% of the value of your home.
  • No monthly mortgage insurance/PMI
  • Sellers can pay a portion of your costs. Seller concessions and/or seller contributions are permitted.
  • Government insured.
  • If you already have a VA Loan you might be eligible for a VA Streamline Refinance.
  • Disabled Veterans may qualify for a waiver of the VA Funding

FAQs

What is the VA Funding Fee and is it required?

Yes, it is required. It is a fee paid directly to the Department of Veteran’s Affairs so that they can guarantee your loan and provide you with the opportunity to receive a loan with little to no money out of pocket.

How much is the VA Funding Fee?

It depends on several factors including whether you are Active Duty, Retired, Guard or Reserve and whether this is a first-time use, subsequent use, or a cash-out refinance as well as how much of a down payment you are putting down. The fee can range from as little as .5% up to 3.30% of the loan. Generally, the more money you put down the lower the VA funding fee. Please contact us and we will help you to determine how what the exact cost of the VA Funding Fee would be for your situation.

Do I have to pay the VA Funding Fee out of pocket?

Under most circumstances you can include the VA Funding Fee in your total loan amount. Contact one of our licensed loan officers for additional information.

Do I still have to pay other normal closing costs like Appraisal, Title, and Escrows?

Yes, however, with a VA loan, if you are purchasing a new home, the seller may pay for all or part of your closing costs.

What is a VA Streamline Refinance?

A VA Streamline Refinance is a refinance option that is available if you already have a VA mortgage, and you want to lower your interest rate with little or no out-of-pocket closing.

Contact one of our licensed loan officers for more information!

USDA

Discover the Single-Family Housing Guaranteed Loan Program, provided by the United States Department of Agriculture (USDA). This program enables qualified borrowers to acquire homes in eligible rural areas, as determined by the rural housing program’s criteria. To participate, borrowers should be aware that an upfront guarantee fee and an annual fee are imposed. If you want to apply for this program, we encourage you to contact one of our licensed loan officers immediately. They will be more than happy to assist you throughout the application process.

USDA Streamline Refinance Transactions

The United States Department of Agriculture (USDA) offers three refinance programs for qualified borrowers.  These are a non-streamline refinance, a streamline refinance, and a streamline-assist. Borrower and household income limit qualifications do apply in each case. Contact one of our licensed loan officers today to apply!

Benefits of USDA Loans

  • 100% Financing – you can buy a home with no down payment.
  • Low Fixed Rate Mortgage Options.
  • Government-insured.
  • Simple Loan Process.
  • There is No Prepayment Penalty.

Down Payment Assistance (DPA)

Down Payment Assistance (DPA) programs assist homebuyers by providing additional funds from a third party for purchase transactions. The funds help cover the down payment and/or closing costs. DPA is either in the form of a gift/grant or in the form of a loan secured by the property (second mortgage). DPA is typically provided by the State Housing Authority or a municipality like a city or county. DPA second mortgage loans may either be forgivable, deferred (no payments on the loan, but the principal will be paid back at a time in the future), or repayable (with monthly payments). 

 

DPA programs have their own set of requirements that must be met. Some of those requirements may include income limits and the need to be a first-time homebuyer. The requirements differ based on the program. 

 

Homebuyers usually work with their lenders to obtain DPA funds. Loan Officers at Success Mortgage Partners can help you identify DPA programs for which you may qualify. 

NON-QM Loans

A Non-QM (Non-Qualified Mortgage) loan is a type of mortgage that does not meet the standard criteria set by government-sponsored enterprises (GSEs) such as Fannie Mae or Freddie Mac. These loans fall outside the guidelines established by the Consumer Financial Protection Bureau (CFPB) for Qualified Mortgages (QMs).

The main difference between QM and Non-QM loans lies in the level of risk and borrower qualification standards. QM loans are designed to be safer for lenders and borrowers, with features such as a maximum debt-to-income ratio, limitations on fees, and certain underwriting requirements. On the other hand, Non-QM loans are more flexible but come with higher risk for both the lender and the borrower.

Here are some key characteristics of Non-QM loans:

  1. Alternative Documentation: Non-QM loans may allow alternative documentation forms, such as bank statements, to verify income instead of traditional W-2 forms or tax returns.
  2. Higher Debt-to-Income Ratios: Non-QM loans may accept borrowers with higher debt-to-income ratios than what is allowed for QM loans.
  3. Interest-Only Payments: Some Non-QM loans may offer the option for interest-only payments for a certain period, providing more flexibility for borrowers.
  4. Unique Property Types: Non-QM loans may be used for unique or non-standard property types that do not conform to traditional mortgage guidelines.
  5. Credit Issues: Borrowers with credit issues, such as recent bankruptcies or foreclosures, may be eligible for Non-QM loans when they would not qualify for QM loans.

Freddie Mac Home Possible

I have great credit and looking for a low down-payment loan.

Fannie Mae Home Ready

Fannie Mae HomeReady

If you’re looking to buy a home and have a good credit history and a stable job, but don’t have much saved for a down payment, you might be interested in the Fannie Mae HomeReady® mortgage. HomeReady is a program that offers fixed-rate mortgages for affordable housing, specifically designed for individuals with low-to-moderate incomes. You can qualify with as little as a 3% down payment or get financing for up to 97% of the home’s value.

Learn more about HomeReady resources and updates: Fannie Mae HomeReady

Disclaimers: This is not a commitment to lend. Programs, rates, terms, and conditions are subject to change without notice. Credit and collateral are subject to approval. Equal Housing Lender.

Is HomeReady right for you?

  • No need to meet an income level to qualify if you live where the median tract income is no greater than 80% AMI.
  • Must make 100% of Area Median Income for properties in high minority census tracts and designated disaster areas to qualify.
  • Must make at least 80% of Area Median Income for all other properties to qualify.
  • Mortgage insurance coverage lower than the standard requirement for LTV ≥ 90.01% to 95% on terms greater than 20 years.
  • Gifts, grants, Community Seconds, and cash-on-hand permitted as a source of funds for down payment and closing costs.

JUMBO

When you need a loan above the conforming limit, a Jumbo loan may be the answer.

If you’re prepared to make a home purchase in one of the country’s most expensive housing markets, you likely encounter a combination of factors including limited housing supply, soaring demand, and frequently encountered prices exceeding the $1 million mark.

Jumbo loans, which fall under the category of non-conforming loans, provide an opportunity in many housing markets to purchase a home valued above the “conforming loan” limit of $647,200, which is set by Fannie Mae and Freddie Mac. Non-conforming loans encompass any loan that surpasses this funding threshold.

In certain high-priced markets, the minimum financing requirement begins at $822,375, reflecting the elevated property values in those specific areas.

If you’re looking for home in a high-priced area, contact us to discuss Jumbo loan options today!