This is a loan which carries a second mortgage for up to 15% of the purchase price of the property. It is usually used when wishing to avoid Private Mortgage Insurance or to keep a first mortgage under the FNMA/FHLMC limit to avoid Jumbo rates. The borrower makes a 5% down payment, finances a first mortgage up to the FNMA/FHLMC limit, and then takes on a second mortgage of up to 15% of the purchase price. Other variations are 80/10/10 or 75/15/5.

Construction loans provide funding in installments as building progresses and the property gains value. When construction is complete, permanent financing replaces the construction loan. Construction and raw land loans, where land is acquired for development, are often a matter of knowing the lenders and what they are interested in financing, a special focus of American Home Funding.

Conventional mortgages are mortgage loans that are not guaranteed by the federal government. These loans include 30-, 25-, 15- and 10-year terms, adjustable and fixed rates, variable loan limits and payment options, and more. American Home Funding typically assembles “packages” of loans that are sold to investors worldwide on the secondary market, bringing new funds to be loaned to other borrowers. We also originate loans that will be held in an investor’s portfolio, giving us more underwriting flexibility and eliminating the appraisal standards of the Federal Housing Administration (FHA) and the Veterans Administration (VA).

All borrowers and properties are not created equal. Special situations may exist where a custom loan solution is the best. Because American Home Funding works directly with boutique banks and investors, custom loan solutions are possible beyond the parameters set by FHA, VA, FNMA and FHLMC guidelines.

FHA Loans are the most widely used financing tools, and as a result, have their own section on our web site – the FHA Loan Center. Created by the federal government, FHA loan programs insure loans to limit risk and lower interest rates to increase the willingness of lenders to make loans under more relaxed guidelines, thus encouraging homeownership. There are maximum loan amounts under FHA and a borrower may only have one FHA-insured loan.

Benefits of a FHA mortgage include:

• A 3% down payment, as opposed to a 5% down payment on traditional loans
• Low monthly mortgage insurance
• Low closing costs, which are regulated by HUD
• No credit score requirements
• Qualify for a loan two years after a bankruptcy
• Qualify for a loan three years after a foreclosure

A Flex 97% loan requires 3% of the home’s purchase price as a down payment. The home must be a single-family, owner-occupied home and borrower must have a credit score of over 720. A Flex 97% can be especially helpful for first time homebuyers who can afford monthly payments, but cannot afford a down payment. Flex 97% loans are available as a 30 or 15-year fixed rate mortgage or an adjustable rate mortgage.

Most lending formulas limit the amount an individual can borrow to a monthly payment, combined with all other monthly bills to a percentage of their monthly income. A monthly debt burden higher than 45% is considered a high debt ratio. American Home Funding has loan programs available for borrowers in this situation, allowing them to finance the purchase of a home or property.

These loans are often used to finance 1-4 family properties that will be for investment. A 20% down payment is typically required. Aggressively priced, there are many variations of these programs available from American Home Funding.

A jumbo mortgage is a mortgage loan in an amount above conventional conforming loan limits set by the two government-sponsored enterprises – the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Fannie Mae (FNMA) and Freddie Mac (FHLMC) purchase the bulk of U.S. residential mortgages from banks and other lenders, providing the lenders with funds to originate more mortgages. Both FNMA and FHLMC have maximum loan limits for mortgages they can purchase based on regional home values. Loans above those limits are referred to as a "jumbo mortgages". American Home Funding offers 30- and 15-year fixed rate jumbo mortgages and competitive ARM products with full document, alternate documentation and limited documentation. Cash out and No cash out refinance are allowable. Single family detached, Condo's, PUD's and single-family second homes can be financed with no prepayment penalty.

Conventional mortgages are mortgage loans that are not guaranteed by the federal government. These loans include 30, 25, 15 and 10 year terms, adjustable and fixed rates, variable loan limits and payment options, and more. American Home Funding typically assembles “packages” of loans that are sold to investors worldwide on the secondary market, bringing new funds to be loaned to other borrowers. We also originate loans that will be held in an investor’s portfolio, giving us more underwriting flexibility and eliminating the appraisal standards of the Federal Housing Administration (FHA) and the Veterans Administration (VA).

A second mortgage is a loan taken in addition to the first mortgage. Subordinate to the first mortgage, these loans offer the borrower the ability to get money for home improvement, debt consolidation, or many other reasons without disturbing their first mortgage. The amount that can be borrowed is based on the difference between the current value of the property and the first mortgage and any other and any other outstanding loans secured by the property. Here again, there are many variations and interest rate structures available.

A VA mortgage is home loan is guaranteed by the U.S. Veterans Administration and available to eligible military veterans. Because the VA guaranty assures repayment of a portion of the loan in the event the borrower defaults, it provides an incentive for lenders to loan money to veterans at favorable terms for the purchase, construction or refinance of a home.

VA loan benefits include:

• No down payment unless the purchase price is higher than the VA-appraised value of the home.
• No mortgage insurance premiums
• VA mortgages are assumable (transferable) to non-veteran individuals with approved credit.
• No penalty for early repayment.