Programs
We have a variety of loan programs and fit any and every borrower in today’s market. Following you will find a brief description of what we have available:
Agency Products – Fannie Mae, Freddie Mac and FHA
Commonly referred to as “Agency” loans, these are loans that are sold to Fannie Mae, Freddie Mac and the Federal Housing Administration. These loans will typically have the best rates and are the most available. Currently, the conforming limit for all three agencies in the Bay Area is set at $417,000. However, due to recent legislation, they have introduced a new, higher limit which is called the “high balance” loan limit. That limit is currently set at $729,750.
Non-conforming, or JUMBO loans
Non-conforming loans are those that do not conform to Fannie, Freddie or FHA guidelines. The largets factor here is typically the amount of the loan. Jumbo loans are loans that exceed the $729,750 Agency limit. Typically, these loans are offered by banks that retin the loans on their books and do not sell them in the secondary markets. Accordingly, they are usually shorter term loans like 5, 7 or 10 year fixed rate loans. We have access to loans up to $3,000,000 using this type of product.
Hard Money loans
These are loans that are available to borrowers that do not fit in any of the guidelines set forth by traditional lenders. They are usually offered by bankers that have pooled together a group of investors that are willing to take on additional risks in lending money in return for a higher return on their investment. The cost associated with these loans is high: typically 3-4 points upfront and rates in the 10-12% range (sometimes higher or lower depending on the situation). We have access to several hard money lenders and can facilitate the loan when necessary.