Fannie Mae – aka Federal National Mortgage Association and Freddie Mac – aka Federal Home Loan Mortgage Corporation are both public government-sponsored enterprises that deal mostly in conventional loans. One of the most popular mortgage loans – primarily represented by 15 to 30-year terms, conventional loans are backed by private lenders. Ideal for new home purchases and refinancing, conventional loans often boast low interest rates, a variety of down payment options and fast loan processing. Loans from Fannie Mae are often sourced through larger commercial banks, while Freddie Mac typically sources its loans through smaller banks.

U.S. Department of Veterans Affairs (VA), Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA) loans are all government-backed mortgage loans that are available to certain segments of society and are ideal for those who may or may not qualify for a conventional loan. VA loans are designed for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses of U.S. military members in the purchase of single-family homes, condominiums and new construction. Insured by the Federal Housing Administration, FHA loans are most popular among first-time homebuyers as they often boast low down payments and fewer credit score restrictions. USDA loans are ideal for low- to moderate-income homebuyers in rural areas.

Also known as non-conforming mortgages, jumbo loans do not conform to the loan limits set by Freddie Mac and Fannie Mae. For instance, in February 2021, the cap for a conforming loan was set at $548,250. Anything at that amount or higher is considered a jumbo loan. It proves a great option for anyone requiring a larger loan to purchase a luxury property.

Ideal for entrepreneurs who’ve recently launched their business and don’t have a history of W2s or financial records to provide, bank statement loans do not require income qualification for self-employed homebuyers. In contrast, most banks and major lenders require that self-employed applicants will be able to provide proof of income for a minimum of two years at their current company.

Similar to Bank Statement Loans, freelancers and contractors need only show their 1099s in place of income qualification with W2s. Finding a bank or major lender willing to do the same is rare.

For loan applicants interested in the purchase of investment properties, no income qualification is required at StrongBox. To determine the ratio, we’ll simply examine your ability to generate enough cash flow to cover the payments.

The ability to show proof of income for one year as a self-employed loan applicant could put you in a position to benefit from lower interest rates and better terms. In contrast, most banks and major lenders require that self-employed applicants will be able to provide proof of income for a minimum of two years at their current company.

Also known as “Assets as Income” loans, these are most popular among retirees who no longer have a monthly income but still have money in the bank and/or other assets of value.

Also known as Individual Taxpayer Identification Number (ITIN) Loans, Tax ID loans are ideal for anyone who does not have a social security number but wishes to secure a mortgage. Available to anyone who files taxes with the IRS, an ITIN can be issued to U.S. resident aliens, nonresident aliens and their spouse/dependents – making it possible to purchase a home without a social security number.

Specific to investment properties, a Foreign National Loan allows noncitizens to purchase property in the U.S. These typically require a larger down-payment as well as proof that the applicant lives and earns income in another country. Most banks do not offer Foreign National Loans, but StrongBox is proud to feature them in our product portfolio.

Non-warrantable is another term for a loan that doesn’t meet conventional guidelines and are therefore considered too risky by most banks and major lenders. Depending on the property and the applicant’s financial viability, StrongBox may still be able to work with you using this loan product. Some reasons a condo may be deemed non-warrantable if it’s new construction, the community allows short-term rentals, or the developer has not turned over control of the HOA to the homeowners.

In working with StrongBox Home Loans, you’ll discover that we offer far more flexibility than most traditional banks.

No Bank Overlays – the fact that StrongBox has no bank overlays means that we can help a wider variety of people because we are not hindered by stringent guidelines and we can get you to the closing table faster because your loan won’t have to pass through many layers of management.
No Minimum Score Requirement – even if your credit is less than stellar, that doesn’t mean you’re out of luck where a mortgage loan is concerned when working with StrongBox. Even if you’re found that most banks and larger lenders won’t even look at you with a credit score below 620.
In working with StrongBox Home Loans, you’ll discover that we offer far more flexibility than most traditional banks.