CONVENTIONAL PROGRAMS
Conventional loans offers a combination of the cheapest borrowing and paid mortgage insurance with some of the lowest borrower-paid pricing. Borrowers only have to go one place to receive a lower payment for their 620+ FICO scores, lower DTI ratios, and 20% down payments compared to government insured or sponsored programs. Real Advantage Professionals, search for the most competitive rates and close your high balance loan with incredible speed! Conventional options for borrowers looking to purchase with a low-down payment or refinance with limited equity.
GOVERNMENT INSURED PROGRAMS
FHA loans offer several advantages, primarily their flexibility, including lower down payment requirements (as low as 3.5%), and the ability to qualify with lower credit scores, generally higher DTI ratios compared to conventional making homeownership more accessible. FHA loans are more flexible when it comes to credit scores, allowing borrowers with lower scores to qualify for a mortgage. FICO can be as low as 580 with a 3.5% down payment. FHA loans offer a competitive interest rate, potentially leading to lower monthly payments. FHA loans tend to be more forgiving of higher debt-to-income ratios compared to conventional loans. Real Advantage Professionals can provide more details how FHA loans can be assumed by a new buyer, which can provide a significant advantage in a high-interest rate market. FHA loans can be combined with various down payment assistance programs, further easing the financial burden of homeownership. FHA loans can be refinanced, allowing borrowers to potentially lower their interest rate or switch to a fixed-rate mortgage. FHA loans can sometimes offer lower closing costs compared to conventional loans. However, FHA comes with mortgage insurance premium MIP fees upfront and annually designed to protect the lender.
GOVERNMENT SPONSORED PROGRAMS
For Fannie Mae and Freddie Mac loans offer a competitive program, the minimum FICO score is generally 620 for fixed-rate mortgages, though some programs or lenders may have higher requirements. Both Fannie Mae and Freddie Mac generally require a minimum credit score of 620 for fixed-rate mortgages. Freddie Mac's low-down-payment programs may require a 620 minimum credit score, while Fannie Mae's equivalent programs may also have a 620 minimum. Both Fannie and Freddie offer DTI up to 65% higher than conventional and government insured FHA product. Lenders may have their own, stricter requirements that go beyond Fannie Mae and Freddie Mac's minimums. Freddie Mac's Home program requires a minimum credit score of 620. Generally, both Fannie Mae and Freddie Mac requires mortgage insurance MI on LTV greater than 80%.
COMMERCIAL AND INVESTMENTS PROGRAMS
Does a DSCR loan seem right for your real estate portfolio? What are your long-term goals for a real estate investment and what are the potential shortcomings? If you are a self-employed investor with a poor credit score or little start-up capital, DSCR loans may make sense for you. While DSCR loan terms are harsh for those with bad credit and they typically have high interest rates and low borrowing limits, they may be the only loan option in New York available to a property investor. Additionally, these loans are for property which take years to fully purchase and develop. If your portfolio needs to be flexible then real-estate investment may not work for you. For investors with good credit who are willing to invest their funds into real estate, DSCR loans can work well in New York. Both New York downstate and upstate New York are popular leasing and tourist destinations which means your DSCR loan can tap into growing industry to fund your investment. High property values and a large population also mean that long-term renting in New York makes for a promising venture. Allow Real Advantage Professionals an opportunity to help you invest in your future. DSCR loans can be used for more than one property and properties with multiple dwellings. Your investment can be centralized in one New York home, an apartment complex in New York City, or multiple property types across the State. Since DSCR loans do not require income checks or W2s they are approved within a couple of weeks, rather than the months-long process of a mortgage. Borrowers have options available for loan repayment, but the most common are interest-only, fixed-rate, or an adjustable rate loans. Whatever your needs may be there is likely a loan that fits your investment needs
