Residential Loans: Purchase Loans
What is a residential purchase loan?
- A residential purchase loan is a loan made to a borrower to finance the purchase of real estate (house or land).
- The terms of the purchase loan vary according to the lender’s guidelines and the borrower’s creditworthiness (based on the 5 C’s of credit – character, capacity, capital, collateral, and conditions).
Sample residential purchase loan programs
Loan amount: We have access to programs that offer loan amounts in all ranges:
- Conforming (up to $484,350);
- Non-conforming or “jumbo loans” (generally $484,351 or higher); and
- “Super-jumbo loans” (generally in excess of $1 million).
Loan-to-value ratio (LTV):
- Typical LTVs can range up to 97%.
Debt-to-income ratio (DTI):
- Some lenders accept DTIs above 50%.
Credit score:
- Minimum FICO score requirements can start at 580 or even 500.
Terms: We offer many different payment terms, including:
- 3/1, 5/1, 7/1, 10/1 adjustable rate mortgages (ARMS);
- 5/1, 7/1, 10/1 interest-only ARMS;
- 10, 15, 20, 25, 30, and 40-year fixed rate mortgages; and
- 40-year interest-only fixed rate mortgages (first 10 years is interest-only).
- Note: We can also tailor the term to less traditional increments of 11 or 22 years, for example.
Eligible property types:
- We have programs for traditional property types (single-family residences, 2 to 4 unit properties, and townhouses).
- We also have programs for less traditional property types (co-ops, condo hotels, and non-warrantable condominiums).
Creative ways to show income: Our lenders offer alternative ways for borrowers to show income to qualify. For instance, borrowers can:
- Provide bank statements instead of tax returns;
- Utilize assets to show income (checking accounts, savings accounts, mutual funds, retirement assets);and/or
- Provide proof of less traditional sources of income (cryptocurrency/bitcoin and short-term rental income (including Airbnb income)).
All items are subject to change. Call David A. Krebs at 321-239-2781, click here to submit a message, or click here to book a call.
Sample success stories
Learn how we’ve helped families and individuals obtain residential purchase loans to purchase all types of residential real estate in Florida, including first-time homes, second/vacation homes, investment properties, and even vacant lots of land for building dream homes. Go to our “Success Stories” page and filter by “Residential Purchase Loan”.