Philip Doos, Mortgage Loan Officer

Program name

Explanation

Best for (borrowers)

Requirements

Note

Conventional Loans

Most common loan program for the majority of American borrowers." (Remove "the" before "American borrowers.

First-time buyer can borrow with 3% down.

FHA Loans

For borrowers with bad credit. 
The FICO score can be as low as 550.

Minimum 3.5% down payment.

Reduced waiting periods after bankruptcy, short sale, or foreclosure.

Lower rates compared to conventional loans, but the borrower must pay upfront PMI of 1.75% and monthly PMI.

VA Loans

Most current and former U.S. military personnel can qualify. No down payment and no monthly mortgage insurance. Rates are lower than conventional loans. You can call your VA administration to ask if you qualify.

USDA Loans

For rural areas and income cannot be too high. You can check if a property qualifies.

Look up

Jumbo Loans

A home loan that exceeds the loan limits set by the FHFA.
They are non-conforming, with strict qualification criteria on FICO, down payment, and DTI.
Rates are usually higher than high-balance (conventional) loans.

High-cost areas where home prices exceed the conforming loan limit.
You are looking to purchase a luxury property or a larger home that requires a larger loan amount.

HELOC

A loan that allows you to borrow against the equity you've built up in your home. Equity is the difference between your home's current market value and the amount you still owe on your mortgage. HELOCs are typically revolving lines of credit, meaning you can borrow money, repay it, and then borrow again as needed, similar to a credit card.  

Need Flexible Borrowing: You want access to funds as needed, rather than a lump sum like a home equity loan.
Plan to Repay Quickly: If you can repay the borrowed amount during the draw period, you can save on interest costs.
Are Comfortable with Variable Interest Rates: Be prepared for potential payment fluctuations if interest rates change.

High credit score, stable income, low DTI (usually max 43%), and home equity minimum of 15-20%.

No Doc Loans

No Doc Loans are a type of mortgage where the lender doesn't verify your income or debt-to-income (DTI) ratio. Instead, they focus on your credit history, assets, and the down payment you can provide.

Who can’t qualify for other programs and still want to buy a primary home.

Min FICO 660
Have large down payment at least 20% (can be gifted)
Need at least 2 active tradelines more than 12 months
9-24 months of reserves based on LTV and FICO.

Investor (DSCR) Loans

Qualify by using Market rent (form 1007), Short term rent (12-month statement) or Rentalizer (AirDNA).
No income required.
DSCR = Net Operating Income / Total Debt Service.

Who want to buy an investment home but not qualify for a conventional loan.

3 tradelines more than 12 months
At least 15% down payment (can be gifted)
Good credit history.

LTV 85% required DSCR > 1.2
LTV 80% required DSCR > 1
LTV 75% required DSCR > 0.75

LTV 70% with DSCR = 0 allowed.

12 months Bank Statement Loans

A type of mortgage that uses the borrower's bank statements to verify their income, rather than traditional income documentation like W-2s or tax returns.

This is suitable for self-employed borrowers, business owners, freelancers, and others who may not have standard income documentation.

At least 10% down
3 tradelines more than 12 months

Profit and Loss Loans

Use the borrower's Profit and Loss (P&L) statement to assess their income and ability to repay the loan.

Self-Employed only.

3 tradelines more than 12 months
At least 15% down payment (can be gifted)
Good credit history.

Most lenders require income deposits of at least 75% of income on the P&L to the bank account.

1099 Loans

A type of mortgage designed for self-employed borrowers or independent contractors who receive income reported on a 1099 tax form. Income is calculated by Income is calculated by multiplying the income amount by 0.9 and dividing by 12.
Some lenders allow you to use 100% of the amount.

Independent contractors who receive income reported on a 1099 tax form.

3 tradelines more than 12 months
At least 20% down payment (can be gifted)
Good credit history.

WVOE

This program is for salaried/wage employees who, for some reason, can’t provide W-2s and pay stubs. Need to work for the same employer for at least 2 years (1 year is acceptable, but few lenders allow that).

We use the amount on WVOE (form 1005) as borrower’s income.

Salary / Wage earner employee
Some Lenders also accept 1099 self employed if they work for the same employer for more than 2 years.

2 years employment history.

Foreign National Loans

This program is the same as DSCR. Qualify by using one of following:
• Foreign income
• Market rent (form 1007)
• Short term rent (12-month statement)
• Rentalizer (AirDNA)

Foreign nationals who don’t have an SSN.

International Credit report (if applicable)
Foreign income (if go with foreign income)
US Bank Account or US LLC
Visa (some lenders require US Visa).

Note: All foreign documents must be translated into English by Licensed Translator.

Asset Depletion/Asset Utilization/Assets as ATR/ATR in Full

(ATR: Asset Turnover Ratio)

A type of mortgage that allows borrowers to qualify for a loan based on their assets rather than their income. This makes them particularly attractive to high-net-worth individuals, retirees, or those with significant investments who may not have a steady income stream.

Who has a lot of assets in their bank /stocks accounts.

3 tradelines for more than 12 months; at least 20% down payment (not all lenders allow gift funds).

Good credit history.

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