Loan Programs

Traditional

Conventional Loans

Conventional loans are actually any type of creditor agreement that are not financed by the Veterans Administration (VA), or supported by the Federal Housing Administration (FHA). In general, all conventional loans are protected by the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC).

 

There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan.

 

Advantages

    Lower Fees: Fees associated with Conventional loans frequently are lower than other loan products because the lender sets these rates.

    Interest Rates: Lenders determine the rates to offer borrowers based on their credit scores. A person with a solid credit score is often able to secure a lower rate.

 

Jumbo

A jumbo is a loan in which the amount borrowed is greater than loan limit set by Fannie May (FNMA) & Freddie Mac (FHLMC)

 

Advantages

    Able to finance a home that is over the maximum loan amount established by Fannie Mae and Freddie Mac.

    Enables a borrower to purchase “more house”.

Amortization

Adjustable Rate

5/1 ARM • 7/1 ARM • 10/1 ARM

An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on a variety of indexes. Among the most common indexes are the rates on 1-year constant-maturity Treasury (CMT) securities, and the London Interbank Offered Rate (LIBOR).

 

Consequently, payments made by the borrower may change over time with the changing interest rate (alternatively, the term of the loan may change). The borrower benefits if the interest rate falls and loses out if interest rates rise.

 

Advantages

    Lower initial monthly payment

    Lower payment over a shorter period of time

    Rates and payments may go down if rates improve

    May qualify for higher loan amounts

Government

FHA Loans

The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.

 

Advantages

    Bankruptcy not an automatic disqualification

    Lower interest rates

    Down payment is less

    Lower mortgage points and other closing cost requirements

    Resale can be made more quickly

    Is backed by the U.S. government

Features

    Down payment required

    Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP is lower

    Loan Limits are lower than conventional

    MIP required regardless of the Loan-to-Value (LTV)

VA Loans

A VA loan is a mortgage loan guaranteed by the Veterans Administration. It was created in 1944 and signed into law by President Franklin D. Roosevelt. A VA loan provides veterans and/or their surviving spouses who have not remarried, with a federally guaranteed home with zero down payment. The program, also referred to as the GI Bill, has been highly successful and has helped millions of American veterans and their families acquire a home.

 

Advantages

    No down payment

    VA does not require private MIP

    Limit on the amount of origination fees and closing costs that the lender can charge

    Limit also placed on appraisal fees

 

Features

    Borrower with eligibility remaining must have a Certificate of Eligibility from the VA

    VA does not require private MIP

    Borrowers are required to make a one-time funding fee based on loan amount and applicant’s service length

    Closing costs can be paid by the lender and the seller

USDA Rural Development

The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA Rural Housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment.

 

Advantages

    No down payment requirement

    Property must be located in an eligible rural area

    Closing costs can be added to the loan amount (if the property appraises high enough to include it at up to 102% of the appraised value)

    Loan government guarantee fee with no monthly guarantee fee

    Low interest rates

    Applicants with a wide range of credit profiles may qualify

    Income eligible applicants who do not qualify for conventional financing may qualify

    Families & individuals that have minimal funds for a down payment and closing costs includes first time homebuyers and repeat homebuyers

    Seller concessions – 6% max

    No cash reserve requirement

    No Non-Allowable costs

    No First Time Homebuyer Requirement

    30 Year Loan @ competitive fixed rate

    No limit on gift funds

 

Features

    Property must be in very good condition and have a high insulation R-factor

    You can not make over 50% of 115% of the median county income to qualify

    Must be able to verify income limits

Loan Purposes

Purchase

A purchase transaction is defined as the process of acquiring a property for the purpose of primary residence, second home or investment property.

 

Advantages

    All interest on the mortgage may be tax deductible*

    Establishes credit history

    Secured investment

    Builds equity

    Can be used to borrow against

 

*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.

Rate Term Refinance

The process of paying off one loan with the proceeds from a new loan, using the same property as security. Cash received by the borrower at closing may not exceed $2,000 (not allowed in Texas). Status varies depending upon State Law. The purpose is, as the name implies, to reduce the interest rate, payment, and/or overall term of the mortgage.

 

Advantages

    Reduction of the interest rate, payment, and/or overall term of the mortgage

    Limit of $2,000 cash (varies depending upon State Law)

Renovation/Remodel

Renovation loans can provide tax deductible money for a complete remodel or specific improvements. It is essentially a second mortgage or home equity loan, which is paid to you in one lump sum or in draws at the loan closing.

 

Advantages:
 Interest may be tax deductible.

 Can consolidate and eliminate unnecessary or high interest debt.

Property Types

Primary Residence

A person’s primary residence is the dwelling where they live, typically a house or a condo. A person can only have one primary residence at any given time, though they may share the residence with other people.

A primary residence is considered as a legal residence for the purpose of income tax and/or acquiring a mortgage.

 

Advantages

    All interest on the mortgage may be tax deductible*

    Establishes credit history

    Secured investment

    Builds equity

    Can be used to borrow against

    Gift funds are allowed

 

*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.

Second Home

A second home refers to private ownership of a residence other than one’s primary residence. Depending on their purpose, second homes are sometimes called vacation homes or secondary residences The property must be available for your exclusive use and enjoyment and must not be subject to any rental pools or long-term leases.

 

Advantages

    Buy the home now while employed and retire in it later

    Build wealth with additional equity

    Similar terms to primary residence loan

Investment Property

An Investment Property is defined as a real estate property that is not occupied by the owner and has been purchased with the intention of earning a return on the investment either through rent, the future resale of the property, or both. An investment property can be a long-term endeavor, such as a rental home, or an intended short-term investment in the case of rehabilitation (where a property is bought, remodeled or renovated, and sold at a profit).

 

Advantages

    Capital growth

    Rental income and yield

    May be tax shelter deductible*

    Build wealth

 

*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.

Condo

At Supreme Lending, condo financing is not a “side gig”. We have dedicated team of experienced professionals who focus on project review and bring years of condominium financing expertise to the table. We are your #condolution – the unique solution to the evolution in condo financing.

 

Benefits:

  • More Financing Options
    • We help clear exceptions to achieve warrantable status
    • Non-warrantable options available
  • Less Roadblocks
    • Experienced, dedicated condo and project team
    • Assistance during new build/construction
  • Better Turntimes
    • 24-48 hour approvals for condos already on the approved project list
    • 48-72 hour approvals for conventional condo loan projects
New Construction

Whether you are buying a newly constructed home, are the builder of a multi-unit development, or you’re a custom builder for a single family residence, Supreme Lending is here to bring you the best options in financing new construction.

 

Benefits For Buyers:

  • Lock and Look ProgramTM provides extended lock options – Call for details
  • Multiple loan programs to meet your needs
  • Quick turntimes
  • Ongoing communication

 

Benefits For Builders:

  • Experience
    • Clarify the mortgage industry guidelines on project development and approval under multiple loan programs
  • Collaboration
    • Offer a sensible view from a lender perspective to maximize unit sale potential prior to breaking ground
    • Provide a network of resources to develop answers, a direction and at the end homeownership
  • Integrity
    • Ask the right questions to the secondary markets to free up individual unit financing
  • Industry Relationships
    • Share our network of resources to develop answers, direction, and, at the end, homeownership

Specialty Loans

First Time Homebuyer

These programs assist the first-time homebuyers who do not have the resources to make a down payment on a home.

 

Advantages:

    • Lower down payment
    • Easier to qualify
    • May get lower rates

 

Features:

  • May be subject to income and property value limitations
  • Some programs which have government subsidies may have a recapture tax if the home is sold too early

 

Florida Loan Programs:

  • Lee County Housing Finance Authority Own A Home Opportunity Mortgage Credit Certificate
  • Florida Housing Finance Corporation Bond Programs including Florida First, Military Heros, HFA Preferred Plus Grant, Florida Assistance Second Lien, and Hardest Fit Second Lien
  • Broward County Florida Grant Program
Down Payment Assistance

Concerned that a big down payment will keep you from owning your dream home?  At Supreme Lending, we offer down payment programs to lessen that burden.  You could you be in your new home for little to no money down.

 

Advantages

    Up to 100% financing options available with our Supreme Dream program + FHA loan

    Down payment assistance that can be converted to a grant and forgiven with 36 on time payments

Features

    Supreme Dream- Income guidelines apply & assistance is a second mortgage on the home

    Other Programs – Must meet income, property type, credit, or employment requirements