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Loan Guidelines
Please read the following types of mortgages to see which one may
apply to your situation: All Descriptions are guidelines and are not gurantees that you will qualify for a loan.
CONFORMING [ The very best Rates ]
Conforming loans are loans that are determined primarily by the credit score. They also require that the borrower be able to qualify for the loan based on a debt-to-income (DTI) ratio. Interest rates are driven by past credit history, credit score, loan-to-value and mortgage amount and Reserves in thier checking or savings accounts. A borrower is considered conforming if they are able to meet ALL of the requirements listed below:
- Previous two years tax returns (both Borrower & Co-Borrower)
Previous two years W-2's (both Borrower & Co-Borrower)
Last three months bank statements on all accounts (both Borrower & Co-Borrower)
At least two months Cash reserves.
Clean credit report with scores not below 660
NON-CONFORMING [ also known as subprime rates ]
Non-Conforming loans are loans that are determined primarily by the credit score. A Non-Conforming borrower is a borrower with past derogative credit issues or the inability to provide the necessary documentation for a conforming loan. You are Non-Conforming if:
- Your credit score is under 660
You have had recent lates (within the last 12 months)
You have had a Bankruptcy (Chapter 7 or Chapter 13) within the last two years
You have had judgements, tax liens, collections or charge-offs within the last two years
You are unable (or unwilling) to provide all the necessary information for a conforming loan
Other factors may be necessary to qualify.
FHA- FEDERAL HOUSING ADMINISTRATION [ good first time buyer program ]
This loan is a non-score driven product with current rates that may vary depending upon past credit issues. This loan is perfect for the buyer that has HAD past credit difficulties. The FHA loan lends most weight to last two years of history. The advantage of this loan is that when properly structured it can become a no down payment loan. We also have the FHA 184 Tribal Loan program. Call today and find out more information (951) 925-9389
Guidelines are simple:
3 years since Forclosure
2 years since chapter 7 bankruptcy discharge date.
1 year NO LATES, collections or judgements or tax leins.
1 year since entering into a Chapter 13 with letter from trustee.
All collections, judgements and tax liens must be paid.
VA - VETERANS ADMINISTRATION [ must have served in the military ]
Contrary to popular belief among veterans, they are not guaranteed a loan. The loan, However, is guaranteed against the borrower going into default. The advantages of this loan is the ability to purchase a home with no money down and with current rates that may vary depending on past credit issues.
Guidelines are simple:
Must have a VA certificate of eligibility
3 years since Foreclosure
2 years since chapter 7 bankruptcy discharge date.
1 year NO LATES, collections or judgment or tax leins.
1 year since entering into a Chapter 13 with letter from trustee.
All collections, judgment and tax liens must be paid.
Next go to An Overview of the Loan Process
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