A mortgage that requires no down payment. 100% finance mortgages often require a minimum credit score of 700 and frequently come with other restrictions.

80-20 mortgages are so named because they involve an 80% first lien mortgage and a 'piggybacked' second mortgage at a slightly higher interest rate to cover the remaining 20%, usually the amount of the down payment. While 80-20 programs require specific credit scores and may involve certain underwriting requirements, they are frequently available to borrowers with "less than perfect credit".

Adjustable rate mortgages begin with a low fixed interest rate for a specific term (typically 1, 3, 5 or 7 years depending on the program), followed by a floating rate for the remaining life of the loan. After the initial period, the rate automatically adjusts either once every 6 months or once every year, and is tied to published financial indexes. ARMs have specific rate caps for both the adjustment periods and the life of the loan.

A conforming mortgage is any loan conforming to the underwriting guidelines of Fannie Mae or Freddie Mac (the two major government-sponsored loan programs). These guidelines include the maximum loan amount, down payment percentage, borrower and co-borrower credit, borrower and co-borrower income requirements, and appropriate property types.

A non-conforming mortgage does not conform to the underwriting guidelines of Fannie Mae or Freddie Mac.

We arrange one mortgage to cover both your building lot and the construction of your new home before you acquire either.

A conventional mortgage is any non-VA or non-FHA loan. Conventional mortgages may or may not conform to Fannie Mae/Freddie Mac guidelines.

The Federal Housing Authority (FHA) or the Veterans Administration (VA) guarantee mortgage loans for people who do not fit the traditional underwriting approval criteria for a home of their own. First time home buyers, buyers lacking credit history, and buyers with past credit issues (but good current credit) can benefit from FHA or VA mortgages. FHA also permits family members to give money to the buyer for the down payment, and allows the seller to pay closing costs.

With as little as a 3% down payment, FHA loans can be refinanced any time without a pre-payment penalty and without requalification, and as long as you continue paying on time you can easily refinance when interest rates fall. In many cases, in high interest rate environments, FHA loans are considered superior to conventional loan because they can be refinanced so easily when rates drop.

The Federal Housing Authority limits the loan ceiling by county (usually somewhere between $120,000 and $180,000). Call a representative today to see if you qualify for an FHA loan and what the loan limit is for your county.

Fixed rate mortgage interest rates do not rise or fall for the entire life of the loan. Fixed rate mortgages are available for 10, 15, 20 and 30 year terms.

A jumbo mortgage is a mortgage for an amount over $417,000 for 1 & 2 unit properties (with higher ceilings in Alaska and Hawaii and for 3 & 4 unit properties). Jumbo mortgages may have different requirements which vary by loan program. Some jumbo loans may also forego certain requirements - such as no income verification and no asset verification - found with traditional mortgages.

Borrowers may qualify for funds for a working farm based on operating income and/or borrowers' income. Loan programs for part-time farms often require both a strong borrower income and a high credit rating.

A loan for a residence you intend to occupy, whether it is your primary residence or a secondary or vacation home.

A purchase and remodel mortgage allows the borrower to take advantage of an equity difference between the purchase price and the appraised value of the property to finance home improvements.

Most loans today are sold on the secondary market to either Fannie Mae or Freddie Mac, or to a number of other institutions. Some loans are kept by the bank that originally funded the loan, and these loans are called portfolio loans. For a borrower, this means that the lender can be more flexible on the underwriting requirements and can be non-conforming since it will not be sold to Fannie Mae/Freddie Mac.

These terms refer to loans made by private investors with their own money. Private loans are typically for shorter terms and carry higher interest rates than conventional conforming mortgages. The borrower advantage with private loans is that private lenders can be much more flexible since they do not need to follow the requirements of conforming loans.

Typically a borrower's income is verified either through the last 2 years W2s, or in the case of the self-employed their last 2 years of tax returns. In certain cases, however, borrowers may prefer to not have their income verified - for example, the borrower may not show enough net income on tax returns to qualify for the loan they need.

Some loan programs have a No Income Verification option. Interest rates are commonly higher than conventional income-verified mortgages, and some programs require the borrower to sign IRS form 4506 or 8821, allowing lenders to request the borrower's tax returns directly from the IRS.

Programs are also available that do not require asset verification. These programs are used by individuals who do not want to disclose their assets.