Loans

Compare Loans

Your Title Goes Here

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

Conventional Mortgage Loan

A conventional mortgage or conventional loan is any type of home loan that is not offered or secured by a government entity, such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) or the USDA Rural Housing Service, but instead is available through or guaranteed by a private lender (banks, credit unions, mortgage companies) or the two government-sponsored enterprises, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Conventional loans offer excellent interest rates and do not require mortgage insurance when a 20% down payment is made. Conventional loans can be used to purchase a home with as little as 3% down and are the most common loans for borrowers with excellent credit.

Conventional loans are often erroneously referred to as conforming mortgages or loans. While there is overlap, the two are distinct categories. A conforming mortgage is one whose underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. Chief among those is a dollar limit, set annually by the Federal Housing Finance Agency (FHFA): In 2019, in most of the continental U.S., a loan must not exceed $484,350. So while all conforming loans are conventional, not all conventional loans qualify as conforming. A jumbo mortgage of $800,000, for example, is a conventional mortgage but not a conforming mortgage – because it surpasses the amount that would allow it to be backed by Fannie Mae or Freddie Mac.

Currently, conventional mortgages represent around two-thirds of the homeowners’ loans issued in the U.S. The secondary market for conventional mortgages is extremely large and liquid. Most conventional mortgages are packaged into pass-through mortgage-backed securities, which trade in a well-established forward market known as the mortgage TBA (to be announced) market. Many of these conventional pass-through securities are further securitized into collateralized mortgage obligations (CMOs).

Your Title Goes Here

Jumbo Loan

At Salvation Financial, we believe that a Jumbo loan shouldn’t mean a jumbo interest rate.; in fact, our Jumbo rates are so good that you’ll be surprised they aren’t Conventional rates. Most lenders consider Jumbo loans to be a higher risk product and they raise their rates and fees accordingly.

We believe that highly qualified folks like you will make their mortgage payments on time regardless of the loan amount. For that reason, we underwrite some of the lowest rates in the industry for folks who borrow above the conventional loan limit. We also offer a ‘no cost’ refinance option for loan amounts between $484,350 and $2 million.

Your Title Goes Here

FHA Loan

FHA loans are meant to encourage homeownership among consumers who wouldn’t usually be approved for a mortgage without the government’s backing, and who aren’t able to afford making a large down payment. FHA loans are mortgages insured by the Federal Housing Administration (FHA) and financed by FHA-approved lenders. When a private bank or credit union extends an FHA loan, the government promises to repay the mortgage lender if a borrower stops making payments.

If you’re looking to purchase a primary residence, you’ll likely be interested in the FHA’s Basic Home Mortgage Loan, officially known as the 203(b). The FHA also offers the 203(k) loan for home improvement. FHA 203(b) mortgages are offered in either 15- or 30-year term lengths with either fixed or adjustable rates.

The 203(b) mortgage loan will allow you to borrow up to 96.5% of your home’s purchase price, meaning you can make a down payment as low as 3.5%. The low down-payment of 3.5% applies to all home purchases for homes with 1-4 units making FHA a great option for buyers interested in occupying a multi-family home. Comparable conventional loans require down-payments of 20%-25% for 2-4 unit properties.

The FHA requires a minimum credit score of 500 for approval and has no minimum income requirement. In exchange for these features, FHA borrowers pay both an annual and upfront mortgage insurance fee.

Your Title Goes Here

Home Mortgage Loan FHA 203(b)

For low income and low credit score borrowers
Borrowers pay upfront and annual insurance fees
Loan limits set by county
Minimum credit score of 500 for loan approval
Minimum down payment of 3.5% of home value
No minimum income requirement

What are the Requirements for FHA Loans?

FHA mortgages have specific requirements for both homebuyer and loan eligibility. For potential borrowers, the FHA requires that all loan applicants have the following:

At least two established lines of credit — for example, a credit card and a car loan;
A debt-to-income ratio (DTI) no greater than 31%, meaning that existing monthly debt payments (before mortgage approval) are less than 31% of your monthly income;
No “delinquent” federal debts, such as a loan default or unpaid taxes.

Because there is no income minimum for FHA mortgage approval, lenders evaluate the financial situation of each applicant using the factors listed above. Strong applicants demonstrate stable employment, minimal outstanding debt and a guarantee of future income. Once applicants are approved for FHA loans, the FHA also requires that every borrower pays mortgage insurance (MIP) for the life of their loan. Unlike with conventional mortgages, borrowers must pay for insurance on FHA loans even after they have paid for 20% of their home.

Credit Score

To be eligible for an FHA mortgage with a minimum 3.5% down payment, your credit score must be above 580. Borrowers with credit scores from 500 to 579 must put down at least 10% of their home’s cost in up-front cash, and applicants with credit scores below 500 are ineligible for FHA mortgages.

Your Title Goes Here

VA Loan

The VA Loan became known in 1944 through the original Servicemen’s Readjustment Act also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans. The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation’s economy. Many consider the VA mortgage loan to be the single biggest benefit associated with military service.

With more than 25 million veterans and service personnel eligible for VA financing, this loan is attractive and has many advantages. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980, or was an officer and began service after October 16, 1981. There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.

The VA will guarantee a maximum of 25 percent of a home loan amount up to $121,087, which limits the maximum loan amount to $484,350. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. Being a veteran doesn’t make a homebuyer automatically eligible for a home loan, you must meet both service requirements and credit/income requirements to be eligible. VA guaranteed loans are for eligible veterans to purchase or refinance homes that they personally occupy. VA loans may not be used to purchase an investment property or second home.

Your VA entitlement

Entitlement is a credit that the VA awards to each eligible veteran. Your entitlement is worth a specific dollar amount. The amount is equal to 25% of the county’s VA loan limit.

If you buy a house where the loan limit is $484,350, then your VA entitlement is $121,087. If the house is in a high-cost county, then your entitlement is worth more.

VA entitlement available-1

Entitlement is not the same thing as a VA Guaranty. Use your entitlement to get a guarantee from the VA.

Check your VA Certificate of Eligibility (COE) to see how much VA entitlement you have available.

Your Title Goes Here

USDA Loan

Officially known as the Section 502 Single Family Housing Guaranteed Loan Program, the USDA loan is a zero down payment mortgage option available to homebuyers in the United States who wish to purchase in a qualified rural or suburban area. USDA loans are issued by private lenders and guaranteed by the U.S. Department of Agriculture (USDA).

Purpose of the USDA Loan

The USDA loan’s purpose is to provide affordable homeownership opportunities to low-to-moderate income households to stimulate economic growth in rural and suburban communities throughout the United States.

These rural development loans are available in approximately 97% of the nation’s landmass, which includes over 100 million people.

USDA Loan Process

Going through the USDA loan process can be different for each homebuyer; however, the typical flow is as follows:

Prequalify with Goliath Mortgage
Provide all necessary documents and reach pre-approval
Find a USDA-approved home in an eligible “rural” area
Sign a purchase agreement and order a USDA appraisal
Be patient during the loan processing and underwriting, then close on your home

USDA Loan Income Limits

Because USDA loans are meant to assist low-to-moderate income homebuyers, the USDA sets income limits based on the property’s location and household size. The base USDA income limits are:

1-4 member household: $82,700

5-8 member household: $109,150

USDA counts the total annual income of every adult member in a household towards the USDA income limit, regardless if they are a part of the loan.

But it’s also not as simple as looking at your annual pay. USDA ultimately looks at what it calls adjusted annual income, which takes into account acceptable deductions for things like child care, medical expenses, and more.

Commerical Loans

Your Title Goes Here

Conventional Mortgages

Conventional mortgages can be used for any property type. Maximum leverage can range from 75-85% (in limited circumstances and areas). Personal guarantees are typically required, but may be waived or limited on occasion, depending on the leverage and program.

Loan Type: Conventional

Property Type *: A, H/M, I/W, M/H, MU, O, R, SS

Min Loan Amount: $1,000,000

Max LTV: 80%

Term Length: 3-15 Years

Term Length: 15-30 Years

Amortization: *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage

Conduit / CMBS Mortgages

Conduit mortgages are typically used for investment office, retail, large industrial, self-storage, flagged hotel, or commercial mixed use properties. Minimum loan amount is $2 million (although $3 million is preferred), maximum leverage is 75% and mortgages are always non-recourse with the exception of standard carve-outs. These mortgages are securitized and sold to investors, so they are highly structured with little room for change.

Loan Type: Conduit / CMBS

Property Type: *A, H/M, I/W, M/H,MU O, R, SS

Min Loan Amount: $2,000,000

Max LTV: 75%

Term Length: 5-10 Years

20-30 Years

Amortization: *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage

Insurance

Insurance mortgages are typically used for investment office, retail, industrial, and strong flagged hotels on a very limited basis. Maximum leverage is usually 65-70% but can stretch to 75% in some cases. Most programs start at a $5 million minimum loan amount, but some can go lower and mortgages can be full, limited, or non-recourse except standard carve-outs.

Loan Type: Insurance

Property Type: *A, H/M, I/W, MU, O, R

Min Loan Amount: $1,000,000

Max LTV: 75%

Term Length: 5-30 Years

15-30 Years

Amortization: *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse MU = Mixed Use O = Office R = Retail

FHA Hospital or Senior Care Loans

FHA facilitates mortgages for hospitals or senior care facilities under its 202, 232 and 242 programs. Collateral is typically any hospital type, memory care facility, skilled nursing facility, or assisted living facility. Maximum leverage is 90% and all mortgages are non-recourse except standard carve-outs.

Loan Type: FHA / HUD

Property Type: *A, AH, C, H, MC, SH, SNF

Min Loan Amount: $3,000,000

Max LTV: 83.3%

Term Length: 35-40 Years

35-40 Years

Amortization: *A = Apartment AH = Affordable Housing C = Cooperative H = Hospitals MC= Memory Care SH = Senior Housing SNF= Skilled Nursing Facilities

SBA Financing

SBA facilitates 85-90% LTV mortgages for owner-occupied properties by guaranteeing them through its 7(a) and 504 programs. Collateral can be any type of commercial real estate (and/or capital equipment) as long as the sponsor(s) occupy over 50% of the property’s square footage. All SBA mortgages are full-recourse.

Loan Type: SBA

Property Type: *A, H/M, I/W, M/H, MU, O, R, SS

Min Loan Amount: $1,000,000

Max LTV: 85 – 90%

Term Length: 3-25 Years

15-30 Years

Amortization: *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage

USDA Mortgages

USDA guaranteed mortgages can be used for any commercial real estate collateral that is located in a designated rural area (with a population of less than 50,000 people). Maximum LTV is 90% under some programs, but most have a maximum of 80-85%. USDA mortgages are almost always full recourse.

Loan Type: USDA

*Property Type: A, H/M, I/W, M/H, MU, O, R, SS

Min Loan Amount: $1,000,000

Max LTV: 90%

Term Length: 5-15 Years

15-30 Years

Amortization: *A = Apartment H/M = Hotel/Motel I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self-Storage

Bridge Financing

Bridge mortgages are used for the light rehabilitation and/or stabilization of a commercial investment or owner-occupied properties. Cash flows are underwritten to pro forma numbers, but still must meet a 1.0x DSCR with the in-place cash net income. Loans are generally recourse for most programs.

Loan Type: Bridge

Property Type: *A, I/W, M/H, MU, O, R, SS

Min Loan Amount: $3,000,000

Max LTV: 90%

Term Length: 12-36 Months

Interest-Only

Amortization: *A = Apartment I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self–Storage

Construction Mortgages

Construction loans are for the ground-up construction or substantial rehabilitation of buildings that cannot service loans at a 1.0x DSCR. These mortgages are usually interest-only until stabilization at which point it will either convert to an amortizing loan or must be refinanced. Loan amounts and LTVs depend on the program under which the project is financed.

Loan Type: Constuction

Property Type: *A, I/W, M/H, MU, O, R, SS

Min Loan Amount: $3,000,000

Max LTV: 80%

Term Length: 12-36 Months

Interest-Only

Amortization: *A = Apartment I/W = Industrial/Warehouse M/H = Medical/Healthcare MU = Mixed Use O = Office R = Retail SS= Self–Storage

Hard Money Loans

Your Title Goes Here

Fix and Flip Loans

Additional docs may be required, case by case

Terms:

Rate: Rates from 8.5% (rate goes up based on credit, experience, LTV and, risk factors)
Fees: 2-3% loan fee (min $3000 fee)
Term: 12-month loan term
Loan Amount: $85,000 minimum loan amount
Property Type: Non-owner-occupied Condos, Townhomes, Multifamily, and Mixed-Use Property.
Credit Score: Min. 650 score
Loan-to-Value: Up to 70% ARV
Loan Type: Purchase Rehab Loans or Refinance Rehab Loans, New Build ( case by case )
Experience: Minimum 3 Projects Completed in past 24 months

We provide hard money Fix and Flip Loans to purchase and rehab non-owner-occupied properties throughout the Southeast United States.

Documentation Required:

Application, Executed Contract, Itemized Rehab Budget
Last 3 Bank / Savings Statements
Appraisal of ARV by Atlanta Private Lending approved appraiser (borrower is responsible for payment)
All Business Entity Documents
Credit Authorization Form

True Hard Money Loans

Purchase: Up to 65% LTV based on purchase price
Refinance – Rate and Term: Up to 65% LTV
Refinance – Cash Out: 50-60% LTV
All credit scores and situations considered
Super Fast Funding – Close in as little as 10 days
Rates from 10-14%
Loan terms up to 12 months

Call Us to Get Started

(848) 800-2040

Email

info@salvationfinancialinc.com

Address

197 Rt 18 South Suite N201

East Brunswick, NJ 08816

Drop us a Message

Salvation