A "fixed-rate" mortgage comes with an interest rate that won't change for the life of your home loan. A "conventional" (conforming) mortgage is a loan that conforms to established guidelines set annually by Fannie Mae and Freddie Mac's federal Regulator, The office of Federal Housing Enterprise Oversight (OFHEO), and is the limit on the size of a mortgage that Fannie Mae and Freddie Mac will purchase and/or guarantee. OFHEO uses the October to October percentage increase/decrease in the average house price in the monthly interest rate survey of the Federal Housing Finance Board (FHFB) to adjust the conforming loan limits for the subsequent year.

Mortgages which exceed the conforming loan limit are known as jumbo mortgages. The interest rate on jumbo mortgages can sometimes be higher than the interest rate on a conforming mortgage. A borrower whose mortgage amount slightly exceeds the conforming loan limit should analyze the economics of reducing their loan size through a larger down payment or possibly using a second mortgage financing option to qualify for a conforming mortgage versus a jumbo mortgage.

Monthly payments on a conventional fixed-rate mortgage remain the same for the life of the loan, making it an attractive option for borrowers who plan to stay in their home for several years. The alternative to the fixed-rate mortgage is the adjustable-rate mortgage (ARM), which features lower monthly payments during the first few years. While many prefer the security of a fixed-rate loan, an ARM may be a better option - especially if you know you'll be moving within the next several years.

If you’re looking to purchase a new home, lower your monthly mortgage payment or get some cash out of your home, an Adjustable Rate Mortgage (ARM) may be your best option. ARMs offer some of the lowest rates available — and today’s ARMs are a lot different than they were in the past.

• Non-Qualified Mortgages are mortgage loans that do not fall into the Qualified Mortgage Category
• Non Qualified Mortgages are not riskier loans but are loans that is often called out of the box and do not fit the qualified Mortgage lending guidelines and the complexity of the Qualified Mortgage guidelines.
• Mortgage rates and fees is slightly higher for Non QM mortgage lenders than QM Lenders due to the limited liquidity the lender has  to sell their loans on the secondary market and due to the lack of protection that QM Loans offer.
• Non QM Loans cannot be sold to Fannie Mae and Freddie Mac and are normally sold to other secondary markets to private investors or held by the lender under their own portfolio.

A jumbo loan, also known as a jumbo mortgage, is a form of home financing for whose amount exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). As a result, unlike conventional mortgages, it is not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages come with unique underwriting requirements and tax implications.

Jumbo mortgages are gaining traction as the housing market continues to recover following the Great Recession.

Trusted Lending Center is pleased to offer "Fix & Flip" financing with industry leading rates. This product is short-term financing for real estate investors. Available for the following property types: non-owner occupied, single family residences, 2-4 family units, condominiums, townhomes, and multi-family properties up to 20 units. Borrower may be an individual, LLC, or corporation.

These are the most popular type of construction loan for consumers, but are now difficult to find in some areas. Also called “all-in-one loans” or “construction-to-permanent loans”, these wrap the construction loan and the mortgage on the completed project into a single loan. These loans are best when you have a clear handle on the design, costs, and schedule as the terms are not easy to modify.

The loan has one approval process, and one closing, simplifying the process and reducing the closing costs. Within this basic structure, there are several variations. Many charge a higher rate for the construction loan than the permanent financing. Typically, the borrower can choose from the portfolio of mortgages offered by the lender such as 30-year-fixed, or various ARM’s (adjustable rate mortgages). Some banks will let you lock in a fixed rate with a “float-down” option allowing you to get a lower rate if rates have fallen, for a fee of course. There may be penalties if the construction phase of the loan exceeds 12 months.

Paying a slightly higher rate on the construction phase of the loan is usually not significant, since the loan is short-term. For example, paying a extra 0.5 percent on a $200,000 construction loan over six months, would only add no more than $250 to your borrowing costs.

Construction loans are typically interest-only and you will pay only on the money that has been disbursed. So your loan payments grow as progress is made and more money is released. When the home is completed, the total amount borrowed during the construction loan automatically converts to a permanent mortgage. If you locked in a fixed mortgage rate at closing, but rates have since fallen, you can lower your mortgage rate by paying a fee – if your loan has a float-down option, a feature you will probably want on a fixed rate loan. If you had chosen a variable rate, pegged to the prime or another benchmark, then you will have to pay the current rate at the time the mortgage converts.

An FHA mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for borrowers who are unable to make a large down payment. FHA loans allow the borrower to borrow up to 96.5% of the value of the home. The 3.5% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers.

For 2024, FHA has an increased loan limit of $498,257. That is up from $472,030 in 2023.

Term: 30 years Maximum Amount: Determined Annually by Property Address

The Federal Housing Administration guarantees their FHA program in lieu of private mortgage insurance (PMI) so qualified borrowers can get a mortgage loan with a low down payment. The FHA doesn't lend the money for the mortgage loan they guarantee the loan. The U.S. Department of Housing and Urban Development Web site can help you find HUD-approved counselors in your area who can answer your questions about FHA loans, specific to your situation. The most popular FHA loan has a minimum cash investment requirement of 3 percent but permits 100 percent of the money needed at closing to be a gift from a relative, nonprofit organization or government agency. The biggest disadvantage to FHA loans is the mortgage insurance premium. In most 15- or 30-year FHA loans, the borrower pays 1.5 percent of the loan amount at closing, along with a 0.5 percent annual renewal premium paid annually over the life of the loan. Unlike private mortgage insurance (PMI), the mortgage insurance premium isn't canceled when the homeowner's equity reaches a target level. You may qualify for a partial refund of the upfront mortgage insurance premium if you owned your home for less than five to seven years. It's five years for loans closed after Jan. 1, 2001 and seven years for loans closed before Jan. 1, 2001 and after September 1983.

The United States Veterans Administration helps service members, veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies.

Term: 30 years Maximum Amount: Determined Annually 

Purchase and Cash-Out Refinance Home Loans With a Purchase Loan, VA can help you purchase a home at a competitive interest rate, and if you have found it difficult to find other financing. VA's Cash-Out Refinance Loan is for homeowners who want to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan. VA will guaranty loans up to 100% of the value of your home. The guarantee VA provides to lenders allows them to provide you with more favorable terms, including: No down payment as long as the sales price doesn't exceed the appraised value. No private mortgage insurance premium requirement. VA rules limit the amount you can be charged for closing costs. Closing costs may be paid by the seller. The lender can't charge you a penalty fee if you pay the loan off early.VA may be able to provide you some assistance if you run into difficulty making payments. You should also know that: You don't have to be a first-time homebuyer. You can reuse the benefit. VA-backed loans are assumable, as long as the person assuming the loan qualifies.

The mission of the United States Department of Agriculture (USDA) Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural homebuyers achieve their dream of homeownership! Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms. Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located.

Term: 30 years
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