Solutions That Fit Your Client: 5 Conventional Loans

When prospective clients are shopping for a mortgage, you need to stand apart from the competition. Caliber Home Loans, Inc. helps you rise above the others by offering clients an exceptionally wide range of loan products. Let these options demonstrate to your clients that you’re placing their needs first. By offering more choices, you’re finding a solution that fits the client…rather than forcing a client to “fit” the solution. This a huge plus and a major trust builder.

Let’s take a look here at five product options in your Caliber portfolio for those clients who match up for a conventional home loan. These are generally for borrowers with a minimum credit score of 620 who are financing the following types of properties: detached or attached single-family, Planned Unit Development (“PUD”), warrantable condominiums, modular or manufactured homes, 2-4 unit homes, or single-unit cooperatives.

1. Conforming Fixed and ARM Loans
   Conforming loans are for borrowers looking to finance their primary or secondary residence, or even an investment property. The Federal Housing Finance Agency (FHFA) loan limits apply - just over $500K for average markets.
   
   Special notes: Have a client with no credit score lower? They may still be allowable through our non-traditional credit requirements.
2. High-Balance Fixed and ARM Loans
   With these products, you can help new homeowners handle additional and sometimes unexpected expenses during the first few years of home ownership, such as furnishing a large new home or making necessary repairs. A high-balance loan may be the optimal solution, as they enable borrowers to receive cash out.
   
   Similar to the conforming loans above, high-balance loans can be for a primary, secondary or investment property. Also, high-balance loans cannot exceed the FHFA high-cost market loan limit- just over $700K for high-cost markets.
   
   Special notes: Unlike conforming fixed/ARM loans, manufactured homes are not eligible. Clients with no credit scores may be allowable through our non-traditional credit requirements.
3. HomeOneSM (Freddie Mac):
   Is a client having trouble meeting a down payment? This loan may be a good fit as it helps first-time homebuyers by offering down payments as low as 3% with no income or geographic restrictions. The income requirements are more relaxed than a typical conforming loan as well. This type of loan also permits clients to have a secondary loan from another entity to increase their access to funding.
   This type of loan may also be used to refinance existing Freddie Mac mortgages but with no cash out option.
   
   Special notes: New homeowners must complete Freddie Mac’s Homebuyer Education course. Manufactured homes are permitted, but subject to certain restrictions.
4. Home Possible® (Freddie Mac)
   For borrowers with low to moderate incomes, consider Freddie Mac as a possible fit for them. It features a low down payment requirement – as low as 3% – and allows down payments from a variety of sources. Your clients can meet their down payment with funds from family, employer-assistance programs, secondary financing, and sweat equity. This product even permits co-signers who do not live in the same home.
   
   Special notes: Borrowers can own an additional financed property. First-time buyers must also complete Homebuyer Education.
5. HomeReady™ (Fannie Mae)
   Fannie Mae is another solution to reducing the barriers to homeownership. This product is not limited to first-time buyers. As such, it often is a great fit for repeat homeowners, whether purchasing of refinancing.
   
   Down payments can be as low as 3%, may come from multiple sources, and qualifying income sources may be non-traditional. In some cases, Fannie Mae allows a lower PMI (private mortgage insurance). Similar to Home Possible ®, co-signers who do not live in the home are permitted.
   
   Special notes: First-time buyers must also complete Homebuyer Education. Properties in high cost areas may qualify. Income limits may apply.

More ways to attract client attention
At Caliber, we are committed to helping you meet the needs of every type of customer. That’s why we offer these 5 conventional home loan products, plus government and refinance loans, to help you have the solution at hand that meets the client’s needs. Partner with us to have immediate access to all our loan options, proprietary tools and top-notch support team.