(see also Synopsis of How Loans Work) graphs and charts included.

MORTGAGE PROGRAMS
We are fast, fair, friendly & flexible!

Since the early 90's we are the Lender that Land Banks all over the state of Texas have turned to when they couldn't do a loan.

Land Bank's charters typically give them the ability to loan money in population centers of 2,500 or less, on properties of over 20 acres and to people with great credit. We do loans in any size population center and can go up to 100 acres. We can also do loans for people with less than perfect credit PLUS we offer many more loan types.

We have great RATES and even better SERVICE on the VA & Conventional 15 & 30 year fixed loans people use the most PLUS we have the added diversity of:

 

(since this is a laundry list of the types of the loan programs we have available in general instead of a an Offering based upon a specific loan situation you need to understand that conditions and restrictions may apply. In other words not everyone will qualify for every loan type available. If you want to know which loans fit your individual situation please call and we'll do an in-depth Evaluation which will tell you what you CAN do CAN'T do and NEED to do to get a loan you can be happy with.)

 

ONE TIME CLOSE for Stick Built housing. Save closing costs and stay in control of your builder.

Not going to build immediately? We can also do Lot loan & Interim loans. We make it easy! Lot/Interim & Permanent financing - all from one loan app! 

COUNTRY PROPERTIES - Rural home properties up to 100 +/- acres

REHAB LOANS FOR CITY OR COUNTRY PROPERTIES that allow you to purchase a property and add improvements like Barns, garages, add-ons, pools, remodeling etc.

97% LOW INTEREST RATE, HIGH DEBT RATIO, TEACHER/ADMINISTRATOR, FIREMAN/POLICEMAN LOANS - This is not your usual many strings attached low downpayment program! There are no income restrictions. Property does NOT have to be in a certain census tract. Closing costs and prepaids may be gift from family member, non-profit agency or UNSECURED installment loan. Good credit required.

Interest Only loans.

40 year loans

975% Financing UP TO 100 ACRES

No Income Verification up to 75%. Because the underwriter is not verifying your income, good credit is a must. High credit scores are required for the borrower and co borrower.

No Income & No Asset Verification up to 75% with 680+ credit scores.

90% Foreign National with no VISA required. Good credit a must.

Investor loans - Straight 90% financing plus we offer Combined LTV loans also (1st & 2nd)

Refinance manufactured home Chattel liens & lot loans into one real estate lien! We're one of the few companies who will do these loans. Reduce your interest rate and extend your term for a significant payment drop!

Bi-Weekly payments! We offer Bi weekly payment schedules which can significantly reduce the term or your loan and the interest paid over the life of your loan. Bi-weekly is not a loan type, but a method payment so it can be applied to almost every loan type. It is great if you intend to remain in a property for more than 7 years.

"A MINUS" LOANS! We offer you the depth and diversity of BOTH Fannie & Freddie "A-" products! Why pay the higher rates of a "B" loan? "A Minus" loans have only a slightly higher rate than regular "A" loans plus they offer up to 97% Financing! Many programs offer an automatic reduction in your interest rates once you have made 12 on time payments in a row!

"B" LOANS! For when situations arise. We take the extra time to thoroughly document & research situations so very few of our customers actually have to settle for a "B" loan. Those that do get much better rates than other companies quote.

SECOND LIENS! Get a first and a 2nd from one loan app! No extra paperwork!

Computerized automated underwriting (LPI, DU, DO) as well as HUMAN underwriting for when things aren't so simple!

 

ADDITIONAL INFO FOR REALTORS/BUILDERS
Same day Closing docs available!
Closing Docs delivered by Email, digitally, or overnighted!

If credit has been an issue, let us know. We can quickly help you get your credit back on track and reported accurately. This added service does take a little more time but depending on the situation, but we usually see credit scores raise 25-100 points! This can be the difference between a low interest rate and a high!

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Summary of Loan Parameters & Loan Definitions
*subject to change without notice

Fixed Rate (10, 15, 20, 25 &30 Years)

Available Conforming & Non-Conforming

Maximum Conforming Loan: $417,000

Maximum Non-Conforming: $5,000,000

Maximum LTV Owner Occupied, Conforming: 97%

Maximum LTV Owner Occupied, Non-Conforming: 95% to $400,000 80% to $600,000 70% to $1,000,000+

Maximum LTV Non Owner Occupied: 90%

Special Features or Programs Available:

No Income or No Asset Programs

Temporary & Permanent Buydowns

Trailing Spouse income (Being transferred and your spouse doesn't have a job here yet? With these programs we can count up to 100% of what your spouse's income WILL BE once they find a job)

90% Loans with no Mortgage Insurance

Relocation Packages

No Points, No Origination Fee Rates

97% LTV HOMEBUYER PROGRAM (No cash Reserves needed)

*Conventional mortgage insurance drops off when either the loan balance drops to 80% of the original loan or whenever property values rise enough so that the loan balance is 80% or less of the PRESENT value, whichever comes first.

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Two Step Programs (7/23 & 5/25)

Conforming Only Maximum LTV: 95%

Rates are locked and remain unchanged for the initial five or seven years. At that point, there is ONE interest adjustment. The new rate is equal to the weekly average of the ten year Treasury securities adjusted to a constant maturity 45 days prior to scheduled payment change. It will be rounded to the nearest 1/8 of a percent, not to exceed a 6% increase from the original note rate. (This is the loan I did on my last home, I started at 7.5% and it adjusted to 8% seven years later) This program is most advantageous for first time buyers or others who are not sure whether they will be in this house for an extended period. The initial rate is usually 1/2 to 3/4 of a percent lower than the traditional 30 year fixed rate. Buydowns are also available on this product.

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Balloon Programs (5 & 7 Years)

Conforming & Non-Conforming

Maximum LTV Conforming: 90%

Maximum LTV Non-Conforming (over $417,000): 80%

Like the Two Steps, these products are amortized over 30 years. A renewal option is offered at the maturity of the initial term. You may renew if all payments within the last 12 to 24 months have been on time, you have made no 2nd liens (or the 2nd lien company will subordinate their loan to your new loan) and a written request has been made 60 days prior to the maturity date. Rate is set at 1/2 percent above the FNMA 60 day mandatory rate for a traditional 30 year program. This program carries a cap rate of 5% above the original note rate. Conforming loans on this program which have not been late in the last 12 months have a mandatory lender renewal.

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Adjustable Rate Mortgages (ARMS)

There are so many new ARM Programs coming out just give us a call and we will be glad to discuss all the different ways an ARM may work for you.

Available Conforming & Non-Conforming

Maximum Conforming Loan: $417,000

Maximum Non-Conforming: $5,000,000

Maximum LTV Owner Occupied, Conforming: 95% (90% is more common)

Maximum LTV O/O, Non-Conforming: 90% to $400,000 80% to $600,000 70% to $1,000,000

Maximum LTV Non Owner Occupied: 90%

Special Features or Programs Available:

No Income or No Asset Programs

Temporary & Permanent Buydowns

Trailing Spouse income

90% Loans with no Mortgage Insurance

Relocation Packages

No Points, No Origination Fee Rates

 

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Negative Amortization, Deferred Interest, or Select Payment loans

We're not crazy about them, but we have Negative Am , Deferred Interest ARM, Select a Payment, or a host of other names for them loans. These are the loans that are advertised with "low 1 to 4% rates". Be warned - YOUR LOAN BALANCE WILL GO UP INSTEAD OF GOING DOWN but they give you have a much lower initial payment. This can work to your advantage if you are staying in the home for less than 2 years. If you do one of these loans you cannot afford to pay top dollar for the home and you must pray there is a large appreciation in value. The biggest problem we see with the neg. am. loans is that the people owe too much on them to be able to sell them. So buying UNDER appraisal value is a must!!!

Be warned, on most of these loans if your loan balance ever rises to 125% of the original loan amount the loan is automatically converted to a fixed rate mortgage "at a payment and interest rate sufficient to fully amortize the loan over the time remaining". We have seen payments double when this happens!

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VA Loans

The concept for VA loans is somewhat different than any other loan type. The privilege of applying for a VA loan is earned by the borrower because of service to their country. In the last couple of years VA has tried to improve their reputation and give expanded approval criteria. We have a great deal of experience in the "NEW & IMPROVED" Guidelines that VA has to offer. You might be surprised what VA will do. Give us a call.

The main advantage to a VA loan is $0 down plus a, sometimes, more liberal qualifying guidelines.

15-20-30 year Fixed rates

ARMs

GPM

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FHA loans

Once upon a time, FHA was the preferred loan type. They had lower interest rates, lower down payments and the loan was fully assumable with no qualifying. This has not been the case for many years now!

FHA has been going thru some changes in the past few years. The government has tried to sell FHA, close it down &/or modify it extensively. Consequently the future of FHA is uncertain. Will it be for minority buyers only, low income buyers, bad credit buyers ("B" loans), or will it go back to serving middle America? Presently FHA is more for "B" credit borrowers and loans less than $55,000.

Since there is a way you can finance your closing costs in a Conventional loan and there is no such a provision in FHA you can actually get into a Conventional loan for less out of pocket expense. Your monthly payments will also be lower on a Conventional loan due to the way FHA figures their Mortgage Insurance. FHA requires you to pay for MI 2 times. You pay their mortgage insurance both UP FRONT & MONTHLY. This makes it quite a bit more expensive than Conventional or VA loans.

BTW FHA mortgage insurance lasts longer and costs more than on Conventional loans.

Another FHA oddity is that even after making your downpayment your loan balance will be greater than your sales price.

15-20-30 year Fixed rates

ARMs

GPM

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"A Minus " Loans

"A-" loans are a special category of FNMA & FHLMC loans. They are for people who just miss being in the normal "A" category due to credit, ratios, situations, etc. They have been a wonderful addition to our line up because in the past people who just missed "A" standards have had to take very high down payment and high interest rate "B" loans.

"A-" rates are higher than "A" loans of course, but only by a little & they have downpayments as low as 3%! There are basically 3 categories of these loans with 3 different rate levels. The higher the risk, the higher the rate. (I know I have heard that somewhere before) Should you have to take the highest rate level, after you have made 12 consecutive on time payments the interest rate will automatically be reduced (we have seen them drop to "A" rate levels). This means there is no need to refinance to lower your rate which will save you thousands in closing costs.

 

"B" Loans - * Special Circumstances - The"'B" market has all but disappeared at the moment!  It is what caused all the mortgage difficulties in late 2007.

"B" loans are for people with Bad credit or unusual situations. They have a higher interest rate and a larger downpayment because the risk is higher. The "standard" downpayment on a "B" loan is 20%. "B" Loans with as little as 5% down are offered, but at substantially higher interest rates &/or different terms

"B" loans are traditionally in the 9% -12% interest rate range, with some loans having rates as high as 15%. Adding-on a penalty on top of those rates for a lower downpayment makes most people put down 20%.

Most "B" loans also have a significant prepayment penalty. Typically it is for 3-5 years but can go longer.

We usually have a wide variety of "B" lenders which usually lets us offer a lower interest rate than most companies. MORE IMPORTANTLY we close very few people as "B" loans because we take the time to work with the Buyers to fully document "situations" &/or help them get their credit reports made accurate so we are usually able to secure an interest rate and term very similar to a normal "A" loan and many get an "A" loan.