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%.
- 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)).
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”.