Conforming loans - funded by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These companies do not lend money directly to you, but work with lenders across the country to offer mortgage loans to meet your needs. As a secondary market for mortgage loans, they purchase mortgages from lenders and package them into securities that can be sold to investors.

Non-Conforming Loans - If you are looking for a large loan amount to purchase or refinance your home, you could consider a jumbo loan, which has a higher loan amount limit than the limits set by Fannie Mae and Freddie Mac. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

Subprime Loans - If you have bad credit, you may not qualify for a conventional loan. In this case, you could consider a subprime loan. Like other loans, subprime loans come in many forms based on the terms, loan amount and loan to value ratio you are looking for. In addition companies will look at your credit and give you a credit grade, which will help them determine the best loan for your situation. With less than perfect credit, you can expect to pay higher interest rates because of the higher risk associated with making a loan to someone with a poor credit history.

Hard Money Loans - If you have been denied for a subprime loan, there is still the option of a hard money loan. Many times our investors do not even care if you have a 300 Mid FICO score, a recent BK, or even a current Notice of Default on your mortgage. We will assist you if you have 65-70% Home Equity available. Usually the closing cost are much higher on this loan and the interest rate can be higher by 3-4% than a subprime loan. This is a Band-Aid Loan to get you through the tough times of cleaning up your credit and allows you to keep your home without loosing it to a foreclosure lien.

Types of Loan Terms within the Loan Programs

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