Regular Programs
Conventional Loan
Conventional loans are privately funded, offering flexible financing and competitive interest rates.
- Minimum Down Payment: 3% for first-time homebuyers.
- Credit Score: 620 minimum, but 700+ is recommended.
- Debt-to-Income (DTI): Up to 50% (based on automated underwriting).
- Additional Features:
- Allows non-occupant co-borrowers and gifted funds.
- Great for investment properties with 20% down.
What makes it worth it:
Conventional loans are often the go-to option for many homebuyers due to their flexible requirements and competitive interest rates. These loans are ideal for borrowers with good credit and stable financial backgrounds.
- Why it’s beneficial:
- Lower Costs: Since these loans aren’t backed by the government, they can offer lower rates and fees compared to government-backed loans like FHA or VA.
- Higher Loan Limits: Conventional loans tend to have higher borrowing limits, making them ideal for those purchasing higher-priced homes.
- Less Strict Property Requirements: Conventional loans offer flexibility in the types of properties you can buy, including second homes and investment properties.
- Non-Occupant Co-Borrowers: Conventional loans allow non-occupant co-borrowers, making it easier for families to qualify by including a cosigner.
FHA Loan
Flexible and accessible government-backed loans for a wide range of borrowers.
- Minimum Down Payment: 3.5%.
- Credit Score: 580 minimum.
- Debt-to-Income (DTI): Up to 56%.
- Additional Features:
- Medical collections and charged-off accounts may not need repayment.
- Accepts gift funds for down payment.
What makes it worth it:
FHA loans are backed by the Federal Housing Administration, designed to help borrowers with less-than-perfect credit or limited down payment savings.
- Why it’s beneficial:
- Low Down Payment: With a down payment requirement as low as 3.5%, FHA loans make homeownership more accessible, especially for first-time buyers.
- Flexible Credit Score Requirements: FHA loans have lower credit score requirements than conventional loans, making it easier for those with less-than-ideal credit to qualify.
- Lenient Debt-to-Income Ratios: Borrowers can have higher debt levels while still qualifying for the loan, allowing for more flexibility in managing other financial obligations.
- Gift Funds Accepted: FHA loans allow gifts to cover the down payment, making it easier to get assistance from family members.
- Medical Collection Flexibility: Medical collections and charged-off accounts do not need to be paid off if the aggregate balance is below $2,000, providing an additional level of flexibility.
VA Loan
A no-down-payment mortgage option for military members and veterans.
- Minimum Down Payment: None required.
- Credit Score: 620 minimum.
- Additional Features:
- No private mortgage insurance (PMI).
- Eligibility for second VA loans with sufficient entitlement.
What makes it worth it:
A VA loan is one of the most powerful financing options available to veterans and active military members, offering exceptional benefits.
- Why it’s beneficial:
- No Down Payment: VA loans require zero down payment, making it possible for eligible military members to purchase a home without any upfront cost.
- No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans do not require PMI, saving borrowers hundreds of dollars per month.
- Competitive Interest Rates: Because the VA guarantees the loan, lenders can offer better interest rates compared to conventional loans.
- Flexible Credit Requirements: VA loans have more lenient credit score requirements, with some lenders approving scores as low as 620.
- No Prepayment Penalties: Borrowers can pay off their loans early without incurring penalties, allowing them to pay off their mortgage faster and save on interest.
USDA Loan
A rural housing development program offering 100% financing.
- Minimum Down Payment: None required.
- Credit Score: 640 minimum.
- Additional Features:
- Must be in a USDA-eligible rural area.
- Lower mortgage insurance than FHA loans.
What makes it worth it:
The USDA loan is a government-backed mortgage designed for low-to-moderate-income homebuyers purchasing in rural or suburban areas.
- Why it’s beneficial:
- 100% Financing: USDA loans offer a no-down-payment option, meaning you can finance the entire purchase price of your home.
- Low Mortgage Insurance Costs: USDA loans typically have lower mortgage insurance than FHA loans, saving borrowers money over the life of the loan.
- Lower Interest Rates: USDA loans often come with competitive interest rates, making them a cost-effective choice for eligible borrowers.
- Income Limits: These loans are targeted at low-to-moderate-income borrowers, which can be a great option for those who meet the income requirements.
- Rural and Suburban Focus: USDA loans are available in eligible rural areas, which can include suburban locations, providing opportunities to buy in less competitive markets.
Down Payment Assistance Programs
One+ Program
A unique program combining client contributions with additional assistance.
- Down Payment Assistance: 3% plus a 2% grant (completely forgiven).
- Credit Score: 620 minimum.
- Eligible Loan Type: Conventional.
3% Down Payment Assistance
Ideal for first-time homebuyers or those qualifying for affordable programs.
- Assistance: Up to $15,000 as a second lien.
- Credit Score: 700 minimum.
- Features: No monthly payments or interest on the second lien.
FHA with 3.5% Down Payment Assistance
Covers 100% financing through FHA and assistance programs.
- Credit Score: 620 minimum.
- Additional Features: Payment on the second lien with 10-year amortization.
FHA with 5% Down Payment Assistance
Combines down payment and closing cost coverage for FHA loans.
- Credit Score: 660 minimum.
- Additional Features: Balloon payment on the second lien after 30 years.
FHLB Grant
A grant program offering financial support for first-time buyers and specific professions.
- Grant Amount: $12,500 for general first-time buyers and $15,000 for public servants, veterans, and healthcare workers.
- Forgiveness: After five years.
PG County, Maryland $25,000 Grant
Generous financial support for first-time homebuyers in Prince George’s County.
- Grant Amount: Up to $25,000.
- Features: 0% interest loan forgiven after ten years.
Specialized Programs
Tax ID Program
Designed for borrowers without Social Security numbers.
- Credit Score: Options starting at no credit score (with 25% down) or 620+ for lower down payments.
- Down Payment: As low as 15% for 700+ credit scores.
What makes it worth it:
The Tax ID Program offers an option for individuals without a Social Security number but who are legally required to pay taxes in the U.S.
- Why it’s beneficial:
- Flexible Down Payment: Down payments range from 15% to 25%, depending on the borrower’s credit profile.
- No SSN Required: This program is perfect for borrowers with an ITIN who need a path to homeownership.
- Income Flexibility: Income verification options include tax returns, bank statements, or profit-and-loss statements, accommodating various financial situations.
Non-QM Programs
Flexible alternatives for non-traditional borrowers.
- Bank Statement Loans: For self-employed individuals using deposits as income verification.
- DSCR Loans: Ideal for investors focusing on rental income.
- Profit & Loss Programs: Use P&L statements instead of traditional income documents.
- Foreign National Loans: Designed for non-resident borrowers with tailored documentation options.
What makes it worth it:
Non-Qualified Mortgage (Non-QM) programs offer flexible options for borrowers who don’t meet traditional lending criteria.
- Why it’s beneficial:
- Bank Statement Loans: Self-employed borrowers can use bank deposits as income verification, bypassing traditional tax documents.
- DSCR Loans: Ideal for real estate investors, these loans allow rental income to cover the debt obligation, making it easier to secure financing.
- Foreign National Loans: Designed for non-residents who wish to invest in U.S. property, these loans have tailored requirements for non-U.S. citizens.
- Profit & Loss Programs: Use your business’s profit and loss statement for income verification instead of conventional tax documents.
Vacant Land Loans
Loans for purchasing residential or recreational land.
- Down Payment: 35-40%.
- Credit Score: 660 minimum.
Additional Options
Commercial Loans
Financing for businesses looking to acquire real estate or expand operations.
- Down Payment: 20% minimum.
- Loan Terms: 5-25 years.
Construction Loans
Loans designed for property development projects.
- Credit Score: 680 minimum.
- Loan-to-Value (LTV): Up to 80% for experienced investors.
- Additional Features: Converts to permanent financing after project completion.