Roughly 75% of all Home Loans in the US are of the Conventional variety. Call it, the Vanilla of Mortgage Programs. These Loans follow the Qualifying Standards set by Fannie Mae & Freddie Mac and can be used to Purchase a Primary Residence, Investment Property or Second Home.

Minimum Down Payments:

• 3% for First Time HomeBuyers

• 5% to Purchase a Primary Residence

• 10% to Purchase a Second/Vacation Home

• 15% to purchase an Investment Property

Minimum Credit Score:

• 620

Conventional is an umbrella term, and offers many sub-programs such as:

• A waiver of all interest rate adjustments for First Time HomeBuyers qualifying with income below 100% of the Area's Median Income (AMI). The result - below market interest rates.

• HomeReady & HomePossible Programs: For Buyers purchasing a primary residence, qualifying with income below 80% of AMI. Reduced Mortgage Insurance rates, and below market interest rates.

• All First Time Home Buyers can put as little as 3% down (as opposed to 5% for non-FTHBs purchasing a primary residence)

Jumbo is a Generic Term for Programs with Loan Amounts greater than the State's Conforming Loan Limit set Annually by the FHFA. Current Loan Limits posted here!

There are Dozens of Jumbo Programs Available. Each with their own Terms and Qualifying Standards. After reviewing your file, I will shop programs for the one(s) that fit you best.

Keep in mind, because you're borrowing a 'Jumbo' amount of Money, you should expect increased Qualifying Terms such as meeting Reserve Requirements, Higher Down Payments, and tighter Debt to Income ratios. The stronger your profile, the more programs are available, and the better the interest rate terms (sometimes lower than Conventional Mortgages)

*Can't qualify for a Jumbo Program?

We can Explore Breaking your Mortgage in Two to still get us there. Ex: a Conventional 1st Mortgage + 2nd Mortgage HELOC = Essentially Accomplishing the same thing.

Home Loans for eligible Veterans, Active-Duty Service Members, and Surviving Spouses. VA Loans often have the Best Terms in the Loan Program Sphere! Below Market Interest Rates, 0% Minimum Down Payment Requirement, no Mortgage Insurance, no Loan Limits, and Flexible Debt to Income Qualifying Ratios. Well Deserved Terms for our Service Members.

VA Loans can only be used to purchase a Primary Residence.

You can Acquire more than one Property under the VA Program. Although, the Subsequent Purchase(s) may require a Down Payment depending on your remaining Entitlement.

My Sincere Mahalo for your Service!

A Government Backed Program best fit for Low to Medium Credit Scoring Buyers. FHA can only be used to purchase a primary residence. Interest Rates for this program are among the lowest, typically 0.375 - 0.500% lower than your Standard Conventional Rate.

What's the Catch?

FHA charges a 1.75% (of loan amount) Fee which can be included to your Loan Amount. Lower Loan Limits (as compared to Conventional). And Mortgage Insurance Rates are Fixed not Tiered (which can be a benefit with credit scores <700).

It's a Great Program when faced with the combination of: <700 Credit Scoring x Needing a Low Down Payment Option.

Minimum Down Payment:

• 3.50%
  

Minimum Credit Score:

• 580

• 500 when putting >10% Down

Max Loan Amount:

• FHA Loan Limits vary by County and Adjust Annually. Look up your County's Loan Limit here (just input the State and it will show all Counties' Loan Limits)

Properties that Legally have 2-4 Homes/Units on the Same Parcel. These are Great. You can Occupy One and we can use Market Rent from the Additional Unit(s) to Boost your Qualifying Income.

Conventional Programs have expanded Loan Limits for 2, 3 and 4-Unit Properties and Down Payment requirements are the same! Such as putting only 5% Down on a 4-Unit Property (as long as you intend to occupy one of the units). Excellent Terms in my Opinion.

ADU / Ohana Units

These Technically do not count as a Second Unit. It's Simply a 1-unit + ADU. In most cases, we cannot use Projected Rental Income from the ADU to help in Qualifying (like we would when purchasing a 2-unit property).

I can do New Projects!

Developers commonly require you to be Pre-Qualified by one of their "Approved Lenders" (it's quality control to ensure buyers are truly qualified and not just submitting a half-baked approval for a spot in the line). But! That doesn't mean you have to Close with a Pre-Approved Lender.. I am happy to help. I have closed countless New Projects in Kaka'ako, Ewa, Kapolei and Mililani. Affordable Housing units are of course doable too and can be combined with local (HHFDC) County Programs.

These Purchases do take Time, and a lot of Communication and Coordination with the Development/Sales Team. A Process I am comfortable with.

A Very Good Conventional Program for Low to Moderate Income Buyers Purchasing a Primary Residence.

Benefits:

• LLPA Waiver (great rates)

• Reduced Mortgage Insurance Requirements

Eligible Buyers:

• <80% AMI

• Primary Occupancy

• Do Not need to be a First Time Home Buyer

• Complete a Free (HUD-Approved) Online HomeOwnership Course (~45min)

Resources:

• Lookup the Area Median Income (AMI) for your target property (80% Limit for this program)

• HomeReady Program Brochure

• HomePossible Program Notes

*There's no Tangible Difference between HomeReady & HomePossible. One is offered by Fannie Mae the other by Freddie Mac. Both are Conventional with identical rates and terms.

Home Equity Line of Credit most commonly taken as a 2nd Mortgage on your Property. These typically have No Closing Costs, Lower Interest Rates, and the Monthly Payments are Interest-Only. Also, you'll only make Monthly Payments based on the Current Balance. If you keep the Balance Small, you'll have Small Payments. It's a Great way to Borrow Cheaper Money.

Max LTV's for most HELOC Programs is 80% meaning, you can only get a HELOC Amount up to 80% of your Home's Value. So we do need Equity in the Home to be Eligible.

A Word of Caution:

The Intro Period of a HELOC is often Very Attractive. Low Rates, Payments are Interest Only but.. both don't last Forever. The Low Rate Period often Expires after 1, 3 or 5yr. Thereafter, the Interest Rate is allowed to Adjust (typically up), which means a Higher Payment. As mentioned, the Interest Only Payments don't last forever either, typically 10yr. After which, you start to pay Interest + Principal, paying the Balance Down.

Be careful of carrying a High Balance Long Term, thinking everything is Manageable, then Bam! Rate Adjusts upwards, Increasing your Payment, making it that much harder to Pay Down the Balance. And if that wasn't enough, should you hang on to the Big Balance beyond the Interest-Only Period, your Payment will Adjust even Higher, as it comes time to start Paying Interest + Paying Down the Balance.