Full Documents Agency Mortgage

An agency mortgage refers to a home loan that is backed or guaranteed by a government-sponsored enterprise (GSE) such as Fannie Mae (FNMA), Freddie Mac (FHLMC), or a government agency like Ginnie Mae (GNMA). These loans follow specific guidelines set by these agencies, ensuring standardization and affordability in the mortgage market.

Key Features of Agency Mortgages:

• Conforming Loan Standards: They must meet eligibility criteria, including loan limits, credit scores, and debt-to-income (DTI) ratios.
• Lower Interest Rates: Since they are backed by government-sponsored agencies, they often come with competitive rates.
• Increased Access to Homeownership: These programs aim to make home loans more accessible, especially for middle-income borrowers.

Types of Agency Mortgages:

1. Conventional Agency Loans (Backed by Fannie Mae & Freddie Mac)
2. FHA Loans (Backed by the Federal Housing Administration)
3. VA Loans (Guaranteed by the Department of Veterans Affairs)
4. USDA Loans (Supported by the U.S. Department of Agriculture)

These loans play a crucial role in maintaining stability and affordability in the housing market. Let me know if you need further details!

Non - Qualified Mortgage

A Non-Qualified Mortgage (Non-QM) is a home loan that does not meet the criteria for Qualified Mortgage (QM) rule. These loans are designed for borrowers alternative income documents.

Key Features of Non-QM Loans:

• Flexible Income Documentation: Borrowers can use bank statements, asset depletion, or alternative income verification instead of traditional W-2s and tax returns.
• Higher DTI Ratios: Unlike QM loans, Non-QM loans may allow DTIs above 43%.
• Credit History Flexibility: Borrowers with lower credit scores, recent bankruptcies, or foreclosure history may still qualify.
• Not Government-Backed: Unlike FHA, VA, or USDA loans, Non-QM loans are funded by private lenders and are not sold to Fannie Mae or Freddie Mac.

Who Typically Uses Non-QM Loans?

• Self-Employed Borrowers with irregular income or high business expenses.
• Real Estate Investors looking for alternative financing.
• High Net Worth Individuals who prefer asset-based qualification.
• Foreign Nationals with limited U.S. credit history.
• Borrowers with Recent Credit Events like bankruptcy or foreclosure.

Non-QM loans offer more flexibility. Let me know if you need further clarification!

Short Term Lending

A Short Term Lending Loan is a type of short-term, asset-based loan that is secured by real estate. These loans are typically provided by private investors or lenders and are used primarily for real estate investments, such as fix-and-flip projects or bridge financing.

Key Features of Hard Money Loans:

• Asset-Based Approval: Loan qualification is based on the value of the property (collateral) rather than the borrower’s credit score or income.
• Short Loan Terms: Typically 6 months to 1years, making them ideal for short-term investment strategies.
• Lower Loan-to-Value (LTV) Ratios: Typically 60-75% of the property value, requiring borrowers to invest some of their own money.
• Fast Funding: Approval and funding can happen in days, unlike traditional loans that take weeks or months.
• Used for Real Estate Investments: Popular among fix-and-flip investors, property developers, and those needing bridge financing.

Common Uses of Hard Money Loans:

1. Fix-and-Flip Projects – Investors buy distressed properties, renovate them, and sell for a profit.
2. Bridge Financing – Short-term loans to cover gaps until long-term financing is secured.
3. Land Acquisition & Development – Used to purchase land or fund initial construction.
4. Distressed Property Purchases – When traditional financing is not an option due to property condition.

Hard money loans are not ideal for long-term homeowners but are a valuable tool for real estate investors looking for quick, flexible financing. Let me know if you need more details!