To Find Your Fit, We Will Share ALL of Your Options.

Premier Nationwide Lending wants you to have a worry-free loan transaction. To serve you to this end, we pride ourselves in providing education and resources so you will understand all of your mortgage options. You’ll know you are getting the loan that best fits you when you sign the final paperwork because with our resources you won’t leave an option unexamined.

TYPES OF LOANS

• Conventional
  • Conforming
  • Conventional Loans with Less than 20% Down
  • Non-Conforming Loans aka Jumbo Loans
• Government Loans
  • FHA (Federal Housing Administration)
  • USDA Rural Housing Program (US Department of Agriculture)
  • VA (Veterans Administration)

The most important part of a loan is selecting the loan that fits your needs the best. There are 3 factors that go into each loan to determine what will work for you. They are income, assets and FICO score. Each factor is equally important in this process because each loan program has minimum standards for credit, different down payment options and varying income limits.

All loans in today’s market fit into 2 categories. You have either Conventional or Government Loans. The conventional loans have 2 sub-categories, either Conforming or Non-Conforming. Under Government loans, you have 3 choices which are FHA, VA and USDA.

Please see each of the following tabs that break down these loans in more detail.

Conventional

Conforming

Conventional Conforming loans are one of the most common forms of a Mortgage loan. They range in loan amount from $35,000 to $417,000 and require a down payment of at least 5% of the purchase price. You can qualify for a conventional loan with as little as a 640 FICO score but unless you have 20% down you will want to have a 700 FICO score to do conventional due to the rate adjustments for being below 700. Conventional has rate adjustments at 740, 720, 700, 680 and then stops at 640.

Conventional Loans with Less than 20% Down

There are 3 different ways you can do a conventional loan with less than 20% down.

Split Loans – You can do a “split loan” which is an 80% loan at the market rate and then either a 5%, 10% or 15% “second lien” at a slightly higher rate, depending on your credit and down payment. This option allows for you to “waive escrows” or in other words, pay taxes and insurance on your own (not included in your mortgage payment). This is a common way to do conventional loans but not all mortgage companies can still offer this program, but we can.

Conventional with Mortgage Insurance (MI) – This is another common form of a conventional loan which you just get one loan at the market rate and then there is an additional form of Insurance called Mortgage Insurance. The mortgage insurance rate varies depending on your down payment and your credit score. This program does not allow you to “waive escrows” because your loan to value is over 80%.

Conventional with Lender Paid Mortgage Insurance (LPMI) – This is a niche product that our company is able to offer due to a great relationship with our mortgage insurance company. Basically, we are able to build in your mortgage insurance into your interest rate for the loan so you don’t have to make additional monthly payments to a Mortgage Insurance company. So your interest rate will be slightly higher than the market rate, but your payment will be lower overall. This one will not allow you to waive escrows either.

Non-Conforming Loans aka Jumbo Loans

Non-Conforming or Jumbo loans are loans that have a balance of $417,001 or higher. They are “non-conforming” because they don’t meet Fannie Mae or Freddie Mac guidelines, so they are governed by a slightly different set of rules. You can do Jumbo financing with as little as 10% down (or equity for a refinance) and credit scores as low as 680. We have a variety of options from interest only ARM’s, traditional 3/1, 5/1 and 7/1 ARM’s to 15 and 30 year fixed.

Government Loans

FHA (Federal Housing Administration)

FHA is the most common government loan originated at this time for many reasons. This program was created by the Federal government in order to make home ownership more affordable so people could buy a home without having 20% down. This program is for everyone, not just for First Time Buyers.

FHA is more forgiving than conventional due to the minimum FICO score of 620, lower down payment minimum of just 3.5% and more forgiving debt to income ratios than conventional. All FHA loans have a required Up Front Mortgage Insurance Premium (UFMIP) of 1% and then depending on the term and down payment of the loan, there is also a monthly MI payment each month.

This is the most affordable option in most cases due to the low down payment, the ability for the seller to pay up to 6% in closing costs and the very small adjustments to your rate for the lower credit score down to 620.

USDA Rural Housing Program (US Department of Agriculture)

The USDA has a Rural Housing Program, which is a 100% financing program that allows the borrowers to have as low as a 620 FICO score and NO Down Payment. You just have to buy a home that is in a designated rural area, which is basically any town in Texas that has a population of less than 20,000 people. Click HERE to see if the home you want to buy is eligible for USDA financing. Because this is a government program, there is an Up Front Funding Fee of 3.627% to help fund these programs, but its worth it to get the 100% financing. Plus there are no monthly mortgage insurance premiums to pay!

VA (Veterans Administration)

VA has and will always have a way to help their veteran’s make life easier. With the VA loan program, this is no different. You MUST be a Veteran to get this loan. VA Financing is 100% financing (no down payment) and for first time buyers the Up Front Funding Fee is just 2.15% with NO monthly mortgage insurance. Because of this, the payments are very friendly for a 100% financing mortgage.

Even though its geared toward veterans, there are still minimum credit score requirements of 620 and they still look at your debt to income ratio and some other factors of you qualifying for their loan. If you are a Vet, then this is for you!