Our Loan Offerings
Purchasing a home is typically the biggest purchase someone will ever make. We're here to help you understand the different loan products available and best determine which one is right for you.
Residential Loan Types
Conventional loans can finance a primary residence, second home, vacation or rental property. A conventional loan is a mortgage not backed by any Government agency such as the Federal Housing Administration (FHA) or Veterans Administration (VA). Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower. Conventional loans are also called “conforming” mortgages, because they conform to guidelines established by Fannie Mae and Freddie Mac – two government-sponsored enterprises that buy mortgages from lenders and sell them to investors to make mortgages more widely available. The minimum credit score requirement is typically between 620 – 640 with a minimum down payment of 5% – 20%.
FHA loans are mortgages issued by the Federal Housing Administration and is an attractive option for first-time home buyers because it’s designed for borrowers with low-to-moderate income by requiring lower minimum down payments and credit scores than many conventional loans. Borrowers with a credit score of at least 580 qualify for an FHA loan covering up to 96.5% of the home value, meaning the down payment is only 3.5%. Borrowers with a credit score between 500-579 can still receive an FHA loan with a 10% down payment.
Doctor & Physician mortgage loans are a special mortgage product available to doctors and physicians. Doctor home loans have fewer restrictions for borrowers than conventional loans because lenders generally trust doctors to be responsible borrowers. Doctors often apply for these mortgages when they’re in residency or shortly after graduating med school.
A VA Loan is a mortgage that is guaranteed by the U.S. Dept of Veterans Affairs. They do not require a down payment, meaning you can finance 100% of the price of the home. Mortgage Insurance Premium (MIP) is not required. Only Military persons and their spouses may be eligible (Certificate of Eligibility required). There is a VA fund fee of 2.15% for first-time buyers or 3.3% for repeat buyers. Low credit scores may be approved as well as higher debt-to-income ratios.
A Jumbo Loan is any mortgage that exceeds the conforming loan limit of $484,350 or in some counties $726,525. Typically a minimum credit score of 700 is required . Jumbo loans typically have slightly higher rates than conventional loans. Jumbo loans are not eligible to be sold on the Secondary Market to Fannie Mae & Freddie Mac and come with unique underwriting guidelines. Jumbo loans are considered Qualifying Mortgages.
Refinancing a loan allows a borrower to replace their current debt obligation with one that has more favorable terms. The borrower takes out a new loan to pay off their existing debt, and the terms of the old loan are replaced by the updated agreement. The opportunity to obtain a lower interest rate is one of the top reasons to refinance a mortgage loan. Some borrowers also take this opportunity to convert an ARM to a Fixed rate. A cash-out refinance allows a home owner to borrower against their equity and refinance for more than the house’s current principal balance. In a cash-out refinance, the borrower then uses the additional cash to pay off debt, make home improvements, vacation, start a business, etc.
A Home Equity Conversion Mortgage is a Federal Housing Administration (FHA) insured mortgage. Home equity conversion mortgages allow seniors (borrowers must be at least 62 years old) to convert the equity in their home to cash. Interest accrues on the outstanding loan balance, but no payments must be made until the home is sold or the borrower(s) die, at which point the loan is paid back entirely.
Why Valorem Equity
We shop for the best rates
We shop around for the best rates so you don’t need to. Plus we have access to many different loan products, including FHA, jumbo loans and others, giving you more options.
Save time with our 100% online, paperless application that lets you securely connect your bank statements, tax records & income documentation in minutes.
We understand that everyone is different and we cater to your preferred style. Whether you prefer in person meetings, phone calls, text, email or online meetings, we’ll make it happen.
Be in the Know
Know exactly where you are in the loan process. Receive timely updates and have a clear understanding if anything else is needed on your end to help the loan process flow smoothly and quickly.
A Team That You Can Rely On
At Valorem Equity, you’ll have your dedicated Loan Originator, but you’ll also be backed by a knowledgeable and driven team of people that truly cares and looks out for you.
Industry Leading Knowledge
We’re continuously learning and improving our processes and technology to make sure that everyone who interacts with Valorem Equity has a positive experience.