When you mortgage a home you are offered a few options, a government backed loan, a conventional mortgage and non-agency mortgages.

Conventional mortgages not guaranteed or insured by government agencies such as the VA and FHA are known as conventional mortgages, but follow the Fannie Mae or Freddie Mac guidelines. Federal National Mortgage Association, also known as Fannie Mae, is a corporation created by the federal government that buys and sells conventional mortgages. It sets the maximum loan amount and requirements for borrowers. The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE).

Adjustable Rate Mortgages (ARMs)

An ARM is a mortgage loan that adjusts its rate accordingly based on an index that fluctuates with the costs to the lender of borrowing from the credit market. While caps and margins may fluctuate due to changes in market conditions, once you lock in your rate, they will not change for the life of your loan.

• Conventional 3/1 LIBOR (2/2/5 caps with 2.25% margin)
• Conventional 5/1 LIBOR (2/2/5 caps with 2.25% margin)
• Conventional 7/1 LIBOR (5/2/5 caps with 2.25% margin)
• (Jumbo) 5/1 and 10/1 LIBOR (2/2/5 caps and 2.25% margin)

High Balance ARMs

High Balance ARMs accommodate non-conforming loan amounts. High Balance loans start at $417,000 for 1 family and ends at $625,000, it may even be higher in your area.

• Lower initial rate
• Lower qualifying rate
• Afford more home
• Lower initial mortgage payment
• Low payments for investment flips

HARP 2.0

The Home Affordable Refinance Program (HARP) is designed for homeowners who are not behind on their mortgage but would like to refinance, but have trouble doing so because the value of their home has declined. This solution can help you by giving you a more stable and affordable refinancing option.

• Allows up to 175% LTV/CLTV for primary residences
• Property Inspections Waivers (PIW) are eligible, meaning no appraisal is needed.
• No DTI restrictions ( based on approve/eligible findings)
• Condos currently secured by Fannie mae can refinance up to 125%, without a full review.

HARP 2.0 with Mortgage Insurance (MI)

Loans with lender paid mortgage insurance (LPMI) or private mortgage insurance (PMI) who meet the requirements of HARP 2.0 can take advantage of the program. The terms and rate would stay the same as on their existing loan. If the coverage is in effect it is transferred over to the HARP 2.0 mortgage.

• Up to 175% LTV/CLTV for primary residences
• PIWs are eligible, meaning no appraisal is needed.
• No DTI restrictions ( based on approve/eligible findings)
• Condos currently secured by Fannie mae can refinance up to 125%, without a full review.

The mortgage experts at SHS can help you decide which mortgage fits your needs. Our detail-oriented team will take all factors into consideration to find the best product for you and your situation.