How mortgage brokers access loan options you can’t?

2 years ago Gino Hawkins

Many homebuyers are unaware that working with a mortgage broker opens up a wider array of loan options compared to going directly to a bank or lender. Brokers have access to both wholesale lending sources as well as programs offered by banks and credit unions. They offer various products to meet your unique financial needs. A broker might be able to access loans that you were unaware existed by following these tips.

Non-QM or alternative loans: Non-QM or non-qualified mortgages don’t adhere to the strict debt-to-income ratio caps set by Fannie Mae and Freddie Mac. A broker can find alternative loan programs from private lenders for those who fall outside conventional guidelines, like self-employed borrowers or those with previous credit issues. These loans look at the overall picture rather than just a DTI number.
Portfolio lending: Many smaller lenders and community banks hold their own mortgages in portfolio rather than selling to the secondary market. Brokers partner with these portfolio lenders to access programs that offer more flexible underwriting and interest rate options. This also allows customization for unique cases like a recent job change or college students.
Down payment assistance: Down payment assistance programs are offered by several state and local housing agencies. Brokers have specialized knowledge about these various options, like silent second mortgages or grants, to help clients purchase with less cash out of pocket.
Jumbo loans: Jumbo mortgages exceed the conventional loan limits set by the GSEs and require special underwriting. Brokers work frequently with jumbo loans and can deftly navigate loan amounts up to million and above along with requirements like higher credit scores or reserves.
Bridge loans: If you need short-term financing for a new home purchase before selling your current house, a broker can source a bridge loan. They’ll handle the specialized underwriting and more complex qualification guidelines so you can move forward before finalizing your existing home sale.
Homestyle renovation loans: If you want to purchase a fixer-upper but lack renovation funds, Fannie Mae’s Homestyle loan can bundle purchase and remodels into one mortgage. Brokers are experts on this niche program which requires cost estimates, contractor payment schedules, and other unique stipulations.
Physician loans: These mortgages cater specifically to medical residents or doctors with high student debt loads. Brokers working with physician loan programs can make qualifying easier by excluding certain debts from DTI or offering lower down payments and rates.
USDA and VA loans: For rural properties or veterans, brokers have specialized access and knowledge about mortgages backed by the USDA or VA. These programs waive PMI, offer 100% financing in some cases, and help clients who might not qualify conventionally.

In today’s complex lending environment, the wide variety of mortgages available goes far beyond standard 15- or 30-year fixed rate loans. mortgage broker marrickville helps you find the ideal loan to meet your unique financial needs. It is done by navigating and accessing niche programs offered by smaller lenders. Find the perfect mortgage solution through a broker with specialized product knowledge.