Conventional (Conforming) Loans:
Loans that are underwritten according to guidelines set forth by the Federal National Mortgage Association (FannieMae) and/or the Federal Home Loan Mortgage Corporation (FreddieMac). The maximum loan-to-value (LTV) and the maximum loan size that FannieMae and FreddieMac will purchase is currently 95% and $300,700, respectively. However, both FannieMae and FreddieMac do have special loan programs that allow for financing up to 97% LTV. These LTV and loan amount limits are periodically reviewed and raised to reflect changes in the cost of housing and cost of living. Conventional loans that exceed 80% LTV's require private mortgage insurance (PMI). Top

Jumbo (Non-Conforming) Loans:
Loans that exceed the loan limits set forth by FannieMae and FreddieMac (i.e. they do not "conform" to the current $300,700) are commonly referred to as "jumbo" loans. Many jumbo loan programs offer programs with loan-to-values (LTV) up to 95%. However, just like conventional loans, jumbo loans that exceed an 80% LTV will require private mortgage insurance (PMI). Top

Government-Insured/Guaranteed Loans:

• FHA
  Loans that are underwritten and insured by guidelines established by the Federal Housing Administration. The maximum loan amount varies county by county, however the maximum loan-to-value (LTV) is 97%. FHA loans have traditionally been the financing tool that most first-time home buyers used. However, FHA offers a number of significant underwriting advantages that many consumers, not just first-timers, take advantage of, such as:
  • Higher allowable debt-to-income ratios
  • Greater leniency for consumers with slow or derogatory credit history
  • Higher allowable seller contributions toward closing costs and points Top
    
    

• Direct Endorsement
  Lenders with this designation, such as STANDARD Mortgage^®, are granted authority by FHA to underwrite & approve FHA loans "in house," without having to send the file to FHA. Top
  
  

• Reverse Mortgage

  What is a Reverse Mortgage? A Reverse Mortgage (RM) is a type of home equity loan that allows senior homeowners to convert some of the equity in their home into cash. RM's work much like traditional mortgages, only in reverse. Rather than making payments to your lender each month, the lender will pay you. Unlike conventional home equity loans, most RM's do not require repayment as long as the borrowers remain in the home. The loan becomes due and payable when the borrower(s) ceases to occupy the home as their principle residence. This can occur if the borrower (or last remaining spouse, in cases of couples) passes away, sells the home, or permanently moves out of the home. The borrower, or their heirs, can choose to pay off the loan balance through a sale of the home, by refinancing or a payoff in cash. In any event, the amount owed on the reverse mortgage cannot exceed the value of the property at the time the loan becomes due and payable. Moreover, if the home is sold and the sale proceeds exceed the amount owed on the reverse mortgage, the excess proceeds are paid to the borrower or their estate. Common Uses: The proceeds from a reverse mortgage can provide funds for many purposes: monthly living expenses, home repairs and improvements, medical bills and prescription drugs, paying off existing debts, education, travel, long term health care, along with many other uses. If your home needs repairs to meet minimum property standards, a portion of the proceeds will be set-aside from the available funds for this purpose. Borrowers can choose how they would like to receive the loan proceeds. Lump sum (all at once) Fixed monthly payments A line of credit Or any combination of the above The funds provided by way of a reverse mortgage are considered as loan proceeds, and as such are not taxed as income. These funds, however, may affect your eligibility for certain kinds of government assistance, so an applicant should consult with their program adviser before applying for a reverse mortgage. The amount of funds received will depend on three factors, such as, the age of the youngest borrower, the value of the home, and the current interest rate. Generally, the older a borrower is, and the more valuable the home is, the greater the proceeds from the reverse mortgage will be. Qualifications: To qualify for a Reverse Mortgage, all borrowers must be at least 62 years old, and own their home. A person may be eligible for a reverse mortgage even if they still have a lien against the property. In fact, many seniors use the proceeds from a reverse mortgage to pay off existing liens. Although there are no income or credit requirements to qualify, there are restrictions on applicants with defaulted federal debts. To request Reverse Mortgage information: Larry Johnson Standard Mortgage Corporation 701 Poydras Street, #300 Plaza New Orleans, Louisiana 70139 (504) 569-3737 revmtg@stanmor.com Top

  
  
  

• VA
  Loans underwritten to guidelines established by the Veteran's Administration. The VA provides a guarantee to the lender of up to 25% of the loan amount, based on a veteran's eligibility. This eligibility is disclosed on a form known as a Certificate of Eligibility, and veterans must provide this document to their lender when applying for VA financing. The current maximum entitlement (guarantee) is $50,750. The VA charges a "Funding Fee" on all loans unless the veteran is receiving military disability pay, in which case this fee is waived. These loans are assumable to qualified borrowers. Currently VA's maximum loan amount is $203,000. Top
  
  

• VA Automatic
  Lenders such as STANDARD Mortgage^® with this designation are granted authority by VA to underwrite & approve the credit, income, & source of funds portion of a VA loan application, without having to send the file to VA. Top
  
  
• VA Lender Appraisal Processing Program
  Lenders with this designation are granted authority by VA to underwrite and approve the appraisal on the property. An appraisal on a VA loan is known as a "Certificate of Reasonable Value," or CRV. Top