2016 Mortgage Loan Programs

Home Buyers and homeowners have a variety of mortgage loan programs to choose from depending on the type of properties they want to purchase and/or refinance and depending on their credit and financial profile.

Most residential mortgage lenders offer FHA Loans, VA Loans, USDA Loans, FANNIE MAE, FREDDIE MAC, Jumbo Loans, and Portfolio mortgage loan programs.  Most mortgage lenders issue pre-approvals 7 days a week, including evenings and holidays.  Mortgage loan applicants can either apply online or contact the mortgage loan originator and the loan officer can take your mortgage application over the phone.  Most pre-approvals are automated approvals via the Automated Underwriting System unless it requires manual underwriting.  There are mortgage lenders that have no mortgage lender overlays on all government loan programs such as FHA Loans, USDA Loans, VA Loans, and conventional loan programs and with mortgage lenders that do not have mortgage lender overlays, your automated approval is your mortgage loan approval.  Unique or difficult mortgage loan applications are first reviewed by a mortgage loan underwriter before the mortgage loan borrower will get a pre-approval issued.  Reputable mortgage loan officers will qualify a borrower very thoroughly so there are no issues during the mortgage process where there will be a last minute mortgage loan denial. A loan officer who properly pre-approves a mortgage borrower should have no issues in closing the mortgage loan in time and have no issues during the mortgage approval process.  We are both purchase and refinance mortgage bankers and have experts in all mortgage loan programs.

Income Is Most Important Factor To Qualify For Home Loan

As long as you have documented income, a mortgage loan officer who works for a mortgage company who have little to no lender overlays can issue a loan approval and your loan will close.

Mortgage loan borrowers with credit issues such as a bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, late payments, unsatisfied collection accounts, or other forms of bad credit can still qualify for a mortgage loan as long as they meet the proper mandatory waiting period and have been timely on all of their payments for the past 12 months and have re-established credit.  We help borrowers with prior bad credit and recent late payments in helping them to improve their credit scores so they can qualify for a loan.  Once you contact us, you are our client and a lifelong relationship starts.

FHA 2016 mortgage loan programs with no overlays at competitive rates

Fixed Rate FHA 2016 Mortgage Loan Programs

Residential mortgage lenders offers 30 year and 15 year fixed rate FHA mortgage loans  which only require a 3.5% down payments at extremely competitive rates

FHA Mortgage Lending Guidelines

1. 530 FICO to 580 FICO scores require 10% down payment.

2. 3.5% down payment on FHA loans over 580 FICO credit scores with no lender overlays.  Maximum back end debt to income ratios for borrowers with credit scores between 580 FICO and 620 FICO is 43%.

3. Debt to income ratios up to 56.9% for FHA mortgage loan applicants with credit scores higher than 620 FICO.  Non occupied co-borrowers are allowed on FHA loans.

4. Up to 6% sellers concession allowed with FHA loans.

5. Open collections, late payments, bank overdrafts, judgments, tax liens, and other prior bad credit allowed.  Collections do not have to be repaid.

6. Bankruptcy, Foreclosure, Deed in Lieu of Foreclosure, Short Sales are allowed, however, need to adhere to Fannie Mae lending guidelines concerning mandatory waiting period requirements.  One year waiting period after bankruptcy and/or foreclosure via the newly implemented FHA Back to Work Extenuating Circumstances due to an economic event mortgage loan program is in full effect to qualified borrowers meeting HUD’s Back to Work guidelines.

7. Manual underwrites available for mortgage loan applicants who cannot get an automated approval via the Automated Underwriting System.

8. 100% gifts allowed on home purchase by family member on FHA loans.

9. 24 hour mortgage loan underwrites and mortgage approvals. 14 day closings if requested.

10. Closings in 14 days if it is a rush file.  Most closings are in 30 days or less.

11. No waiting period for borrowers with short sale as long as they were current on their loan until the day of the sale.

Conventional mortgage loan programs with no overlays at competitive rates

Conventional Mortgage Loan Programs

Conventional Mortgage Lending Guidelines:

1. Minimum 620 credit scores on conventional mortgage loans with no lender overlays.

2. Maximum 45% debt to income ratio.  No overlays. As long as you get an approve/eligible per DU or LP FINDINGS, that is your loan approval.

3. 5% down payment conventional loan with credit scores of 620 FICO with no mortgage insurance required.

4. 3% sellers concession allowed on home purchase as well as lenders credit towards closing costs.

5. Second home conventional loans at 10% down payment.

6. Investment home conventional loans at 15% down payment..

7. Conventional loan after 2 years after deed in lieu and/or short sale with 20% down payment and no lender overlays.

9. Prior bad credit okay.

10. As long as you get an automated approval via AUS, we can get you a conventional loan.

HomePath Loans

HomePath Mortgage Loans. 

1. No appraisal required.

2. No mortgage insurance premium.

3. 3% down payment.

4. 660 FICO credit scores.

5. 10% down payment for second/vacation homes.

2016 UPDATE On HomePath Mortgage Loan Programs:

Fannie Mae no longer offers HomePath Mortgage Loan Programs. However, home buyers can still purchase Fannie Mae HomePath properties but need to seek other sources of financing whether they are FHA Loans, FHA 203k Loans, or Conventional Financing.

VA Loans

1. 100% financing.  Funding fee can be rolled into the loan.

2. 580 FICO minimum credit scores.

3. Open collections, charge offs, late payments, and other prior bad credit allowed.

4. 2 year waiting period after foreclosure.

Jumbo Loans And Super Jumbo Loans

1. 90% loan to value Jumbo Loans now available with no mortgage insurance premium.

2. Super Jumbo Loans for loan sizes over $3 million.

3. Specialty homes with no comparables.  Appraisal will go by cost approach.

Condotel Mortgage Loans And Non-warrantable Condo Loans

1. Condotel Financing with 25% down payment.

2. Non-warrantable condo loans with 20% down payment.

203K Mortgage Loans

1. 203K Streamline Loans.  Up to $35,000 in rehab funding.  One closing.

2. Full 203K Loans.


1. FHA 2-4 unit mortgage loans require 3.5% down payment.

2. 85% of potential rental income can be used for borrower’s extra income to qualify for debt to income ratios on FHA multi unit mortgage loan programs.  No landlord experience required.

3.. Conventional 2-4 unit mortgage loans require 15% down payment.

4.  75% of potential rental income can be used as borrower’s extra income to qualify for debt to income ratios on conventional multi unit mortgage programs.  No landlord experience required.

Commercial Loans

SBA and commercial loans are available in 48 states

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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