Other Loan Types
Condos
Condo loans can be financed with standard terms as long as they are warrantable. Many condo associations are on pre-approved lists with VA, FHA, and conventional. If they aren’t then it is critical to get a condo questionnaire filled out and submitted to your lender to see if it is warrantable. Warrantable basically means that it can have standard financing and generally means that the association is running the condo properly, with adequate reserves for repairs, is not in a lawsuit, and is at least 50% owner occupied or 2nd homes. When a complex is mostly investment property, in a major lawsuit, or under capitalized it is non-warrantable. Skyridge Lending does make non-warrantable condo loans but they usually require more money down, have higher interest rates, and/or higher closing costs. It is important that you find out why it is non-warrantable and are comfortable with the reasons as this could affect future value and re-sale value if the condo is being mismanaged or in a lawsuit that has negative consequences on the condo dues, etc.
FHA
This is commonly used for First-Time Home buyers. Like many other loans, it has pros and cons. One of the pros is that it has great interest rates. Currently, one of the cons is that a 30-year loan has mortgage insurance for the life of the loan, no matter how low the loan-to-value is.
FHA is good for first time homebuyers that can put 3.5% down. It does allow for higher debt to income ratios than many of the other programs, works well on manufactured homes, and is a good option on 2-4 units properties where the owner will still be living in one of the homes.
USDA Purchase
When I hear USDA I think of prime beef or rural America. When it comes to loans it is basically a great deal for those who can qualify. The US Department of Agriculture’s USDA Rural Development Guaranteed Housing loan program was designed to improve the economy and quality of life in rural America. If you like being out on land and in the country then this option may be great for you. The biggest benefit is up to 100% financing with no down payment required and still allowing the seller to pay for closing costs. This is one of the cheapest loan options to get into, has a 30-year fixed low rate, and a very low monthly mortgage insurance amount. This option is typically the lowest payment option for those who qualify.
Section 184
This is a section of HUD that is for Native Americans who have their roll card to a federally recognized tribe. It has similar qualifications to FHA loans but will lend on tribal land, only requires a 2.25% down payment, has only a 1% funding fee (as opposed to FHA’s 1.75%), and has only a .01% monthly MI charge (compared to .85% on FHA). This loan is a great option for most Native Americans looking to purchase a home.
Investment Property Loans
We do investment property loans, whether it is just for one property or if you plan to purchase twenty. There is a strategy, so it helps us to know your short- and long-term goals when it comes to how many properties you plan to own. We have long-term financing with as little as 15% down, as well as short-term financing for those fix-and-flip projects.