Conventional Mortgages

Conventional loans are ideal for borrowers with a solid credit history and traditional W2 income. These loans typically have lower interest rates compared to Non-QM and Jumbo loans, offering flexibility with term choices such as fixed-rate and adjustable-rate options. Conventional mortgages allow for down payments as low as 3% and require a minimum FICO score of 620. They are applicable to a wide range of properties including single-family homes, condos, co-ops, and manufactured housing.

• • Pros: Lower interest rates, flexibility in terms, no PMI with a 20% down payment.
  • Cons: Stricter eligibility requirements, higher down payment needed.

 

Jumbo Loans

Jumbo loans cater to high-value property purchases that exceed conventional loan limits, making them suitable for luxury homes or properties in high-cost areas. These loans offer competitive interest rates for borrowers with high credit scores, with a minimum FICO score requirement of 660. Jumbo loans are available for single-family homes, rental properties, and 1-4 unit properties, with loan amounts up to $5 million and fixed-rate terms of 15 or 30 years.

• • Pros: Ability to finance luxury properties, competitive interest rates for high-credit borrowers.
  • Cons: Stricter credit requirements, larger down payment needed.

 

FHA Loans

FHA loans are designed for first-time homebuyers with lower credit scores, providing a government-backed option that offers more lenient approval guidelines. These loans require a down payment as low as 3.5% and a minimum FICO score of 580. FHA loans also feature high-balance loan options in certain counties and allow for temporary buydown options, making them a flexible choice for many buyers.

• • Pros: Lower down payment (as low as 3.5%), more lenient credit requirements.
  • Cons: Mortgage insurance premiums (MIP) required, higher overall cost.

 

VA Loans

Exclusive to veterans, active-duty service members, and eligible spouses, VA loans offer no down payment requirements and competitive interest rates. These loans require a minimum FICO score of 600 and provide cash-out and streamline rate/term refinancing options. VA loans are applicable to various property types including single-family homes, condos, new construction, and manufactured homes, with a maximum loan-to-value (LTV) of 100%.

• • Pros: No down payment required, no PMI, competitive interest rates.
  • Cons: Only available to eligible military members, funding fee required.

 

Non-QM DSCR Loans

Non-QM DSCR loans are tailored for real estate investors, using the property’s income rather than the borrower’s personal income for qualification. These loans require a minimum FICO score of 640 and offer loan amounts up to $3.5 million. They include fixed-rate, adjustable-rate, and interest-only options, and are suitable for 1-4 unit residences and condos with a maximum LTV of 80%.

• • Pros: Suitable for investment properties, flexibility in income verification.
  • Cons: Higher interest rates, stricter eligibility criteria.

 

Non-QM AltDoc Loans

For borrowers lacking traditional income documentation, Non-QM AltDoc loans use alternative documentation such as bank statements, CPA-prepared profit & loss statements, and 1099s for qualification. These loans, requiring a minimum FICO score of 600, can finance up to $3 million and are available in fixed-rate, adjustable-rate, and interest-only options. They are applicable to 1-4 unit residences and condos, with a maximum LTV of 85%.

• • Pros: Flexibility in income verification, suitable for self-employed borrowers.
  • Cons: Higher interest rates, more documentation required.

 

Non-QM Pathway Loans

Non-QM Pathway loans are designed for borrowers with recent credit events or lapses in credit performance. These loans provide flexible credit requirements and require a minimum FICO score of 600. Offering loan amounts up to $2 million, they come in fixed-rate, adjustable-rate, and interest-only options, and are suitable for 1-4 unit residences and condos with a maximum LTV of 80%.

• • Pros: Flexible credit requirements, suitable for those with less-than-perfect credit.
  • Cons: Higher interest rates, potential for higher fees.

 

Commercial Loans

Commercial loans from Priority Financial are ideal for income property investors, offering financing for multifamily, mixed-use, retail, office, and industrial properties. With no maximum loan amount, these loans provide flexible terms, including up to 30-year terms, and can be either recourse or non-recourse. They require a maximum LTV of 75%.

• Pros: No maximum loan amount, flexible terms.
• Cons: Stricter eligibility criteria, higher down payment required.

 

Hyper HELOC

The Hyper HELOC offers quick access to home equity, allowing homeowners to get approved for up to $400,000 in cash online within minutes. This product requires a minimum FICO score of 620 and allows a maximum LTV of 85%. It is applicable to owner-occupied, non-owner occupied, and second homes.

• • Pros: Quick approval process, no prepayment penalties.
  • Cons: Higher interest rates compared to traditional HELOCs.

 

Traditional HELOC

A traditional HELOC acts as a second mortgage, enabling homeowners to borrow against their home equity for various needs. With proceeds up to $1 million, these loans require a minimum FICO score of 660 and a maximum LTV of 85%. They are applicable to 1-4 unit residences, PUDs, and condos, offering flexibility in the use of funds.

• • Pros: Flexible use of funds, potentially lower blended payments.
  • Cons: Variable interest rates, requires significant home equity.

 

Reverse Mortgage

Reverse mortgages are designed for homeowners aged 62 and older, allowing them to convert home equity into cash without requiring monthly mortgage payments. These loans can provide proceeds as a lump sum or equity line, and are available for loan amounts up to $1 million. They can also be used to pay off existing mortgages and high-interest debt.

• • Pros: Provides financial flexibility in retirement, no monthly mortgage payments required.
  • Cons: Reduces home equity, potential impact on inheritance.

 

ITIN Loans

ITIN loans cater to borrowers without a Social Security Number, using an Individual Tax Identification Number (ITIN) for qualification. These loans require proof of employment and two years of tax returns, with a minimum FICO score of 640. They offer loan amounts up to $2 million and are applicable to 1-4 unit residences and condos.

• • Pros: Provides a path to homeownership for non-traditional borrowers, flexible documentation requirements.
  • Cons: Higher interest rates, additional identification documentation needed.

 

By understanding the various mortgage options available through Priority Financial, you can make an informed decision on the best loan for your specific needs and financial situation. Each loan type has unique features and benefits, making it essential to choose the one that aligns with your homeownership goals and financial profile.