Common questions about programs, answered by Mike Swaleh.
What types of mortgages are there?
The main families are conventional, FHA, VA, USDA, jumbo, and alternative-documentation programs for self-employed and investor borrowers. Each fits a different situation – credit profile, down payment, property type and occupancy all steer it. I can explain any of them; which one is right for you is Mike's call, once they have your actual file.
What is an FHA loan?
FHA is a government-insured loan that is more flexible on credit and debt ratios, which makes it popular with first-time and credit-rebuilding buyers. The trade-off is mortgage insurance: an upfront premium plus an annual one, and on most FHA loans with the minimum down payment, that insurance lasts the life of the loan. Many borrowers refinance out of it later once they have equity.
What is a VA loan and do I qualify?
VA loans are for eligible veterans, active-duty members, certain Guard and Reserve members, and some surviving spouses. Typically no down payment, no monthly mortgage insurance, and competitive pricing – and the one-time funding fee is waived for many veterans with a service-connected disability. Eligibility runs off a Certificate of Eligibility. It is the most underused benefit in this business and worth having Mike check properly.
What is a conventional loan?
A conventional loan follows Fannie Mae or Freddie Mac guidelines and generally offers the best pricing for stronger credit profiles. Low down payments are available for eligible buyers, and unlike FHA, the mortgage insurance can be removed once you have enough equity. It works for primary homes, second homes and investment properties.
What is a USDA loan?
USDA loans allow zero down for eligible borrowers buying in designated rural and many suburban areas, with household income limits. Eligibility is determined by the property address against the current USDA map – areas just outside a metro often qualify while the metro itself does not, so it always has to be checked rather than assumed. Primary residence only.
What is a jumbo loan?
A jumbo loan is one above the conforming loan limits, which are set annually and vary by county. They generally call for stronger credit, larger down payments and more reserves, and terms vary far more between lenders than they do on agency loans. Mike can tell you the current limit for your county.
I am self-employed and my tax returns look bad. Any options?
Yes – bank statement programs, profit-and-loss programs, asset depletion and 1099-only programs exist precisely for borrowers whose returns understate their real cash flow. They are legitimate and often the right answer, and they generally carry higher rates and larger down payments than agency loans. Mike can compare both routes for you.
Can I get a loan for an investment property?
Yes. Some investor loans qualify on your personal income, and DSCR programs qualify on the property rental income instead, which is how many investors scale a portfolio. Both typically want larger down payments and price higher than an owner-occupied loan. Mike works with investors regularly.
Can I buy a duplex or fourplex and live in one unit?
Yes, and it is one of the more powerful and underused strategies out there – if you live in one unit, a two-to-four-unit property can often be financed on owner-occupied terms, and rental income from the other units may help you qualify. Rules vary by program. Definitely worth a conversation with Mike.
Can I finance a fixer-upper or renovation?
Yes – FHA 203k and conventional renovation products finance the purchase and the repairs in a single loan, and construction-to-permanent financing exists for building. All of them are more process-heavy and contractor-dependent than a standard purchase, so start the conversation with Mike early rather than after you are in contract.
Am I still a first-time buyer if I owned a home before?
Possibly. Many programs define a first-time buyer as someone who has not owned a home in the past three years, which means plenty of previous owners qualify again. Definitions vary by program, so it is worth checking rather than assuming you are out.
Is Fairway a bank?
Fairway Independent Mortgage Corporation is a mortgage lender – not a bank and not a broker. Company NMLS Entity ID 2289. Mike Swaleh is a licensed loan originator with Fairway, NMLS 739145.
Mike Swaleh, Area Manager · NMLS #739145 · Fairway Independent Mortgage Corporation, NMLS Entity ID #2289
436 Lincoln Boulevard, Suite 105, Lincoln, CA 95648 · mswaleh@fairwaymc.com · Licensed in AZ, CA, CO, FL, GA, IL, KY, MO, NV, NC, OR, SC, TN, TX, WA
This information is not intended to be an indication of loan qualification, loan approval or a commitment to lend. Other limitations may apply. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Fairway is not affiliated with any government agencies. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, License No 41DBO-78367.
Equal Housing Opportunity. Verify licensing at nmlsconsumeraccess.org
