Loan Programs
Common Loan Programs Available
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Conventional Loans
A conventional mortgage loan is a home financing option not insured by any government agency. These loans, offered by private lenders like banks or credit unions, typically require a higher credit score and a down payment. For first-time homebuyers, the minimum down payment is as low as 3%, while repeat buyers need at least 5%. Borrowers can avoid paying private mortgage insurance by making a 20% down payment. Conventional loans come with various terms and rates, including fixed and adjustable-rate options, and can be used for buying primary residences, second homes, or investment properties. This flexibility makes them a preferred choice for many homebuyers.
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FHA Loans
An FHA mortgage loan is a government-backed home loan insured by the Federal Housing Administration (FHA). Designed for lower-income borrowers or first-time homebuyers with modest credit scores, these loans require smaller down payments, starting as low as 3.5%. FHA loans come with mandatory mortgage insurance to protect lenders in case of default. They can be used to purchase or refinance a primary residence.
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Jumbo Loans
A Jumbo mortgage loan is a type of home financing that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because they surpass the thresholds established for conventional loans, Jumbo loans are typically used to purchase high-value properties. These loans often require higher credit scores, more substantial down payments compared to standard mortgages. Jumbo loans are not backed by federal agencies, meaning lenders bear more risk and often impose stricter lending criteria.
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VA Loans
A VA mortgage loan is a home loan guaranteed by the U.S. Department of Veterans Affairs (VA) and is available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. VA loans are designed to help service members purchase or refinance a home with favorable terms, such as no down payment, no private mortgage insurance, and competitive interest rates. These loans also feature lenient credit requirements and can include additional benefits like limits on closing costs and no prepayment penalties.
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USDA Loans
A USDA mortgage loan is a home loan supported by the United States Department of Agriculture, aimed at assisting rural homebuyers to achieve homeownership. These loans are available to eligible borrowers in designated rural and suburban areas, typically requiring no down payment. USDA loans offer low interest rates and reduced mortgage insurance costs. The program is designed to promote accessibility to homeownership for lower-income households in less densely populated areas.
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HELOCs
A Home Equity Line of Credit (HELOC) is a type of revolving credit secured by the equity in a homeowner’s property. Unlike a traditional mortgage, a HELOC functions more like a credit card, allowing homeowners to borrow against their home equity as needed up to a pre-approved limit. Interest rates on HELOCs are typically variable, meaning they can fluctuate over the life of the line of credit based on market conditions. This flexibility makes HELOCs popular for funding home improvements.
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Non-QM Loans
A Non-Qualified Mortgage (Non-QM) loan is a type of mortgage that does not meet the strict consumer protection criteria set forth by the Consumer Financial Protection Bureau (CFPB) under the Qualified Mortgage (QM) guidelines. Non-QM loans cater to borrowers who have non-traditional income sources, such as self-employed individuals or those with variable incomes, who may not qualify under standard documentation requirements. These loans can also accommodate those with higher debt-to-income ratios.
(530) 520-3615
Burnett Mortgage is solely licensed in the State of California, and not authorized to broker home loans in any other state.
