Loan Products
Mortgage Loan Programs
Loan Program Disclaimer: all loan programs are subject to change without notice, call
Charles R. Nelson Mortgage, Inc., at 1-352-543-9598 to verify that no changes have
been made in the program you're considering.
Construction Loans
Construction-to-Permanent Financing/All-in-one Loan
This is a combination construction and permanent loan with a one time closing up front.
Monies are advanced at several phases of construction. Upon completion of the home, the
construction loan is then modified to a permanent mortgage for the full loan balance.
Pay interest only on the outstanding balance during the construction period. One time closing up front makes lower closing costs.
Choose a fixed rate or adjustable loan for the permanent financing.
Available on conforming and non-conforming loan amounts.
Second homes are permitted.
No Income and No Ratio programs are available.
Conventional Conforming Fixed Rate Loans
Residential loans are available for loan amounts up to $417,000 for 1 unit,
$533,850 for 2 units, $645,300 for 3 units & $801,950 for 4 units. These loans are
underwritten to Fannie Mae and Freddie Mac guidelines.
Choose the loan term (15, 20 and 30 year) that fits your needs best.
28/36 qualifying ratios or better explained, no more than 28% of your total monthly
income can be used to pay your housing payment (i.e., PITI, principle, interest, taxes
and insurance) and no more than 36% of your total monthly income can be used to
pay your total housing payment + your other monthly debts (i.e., installment loans,
revolving charges, etc.).
Minimal down payment required on owner occupied properties. Mortgage insurance
required for loans over 80% loan to value (LTV).
Second home and investor financing available.
Purchase and Refinancing available.
Non-Conforming Loans
Loans that are typically underwritten to Private Investor guidelines.
Loans that normally are called Sub-prime or "B, C & D paper" or better explained, as
borrowers with less than perfect credit ratings.
B-borrowers = 580-620 average credit score, C-borrowers = 540-579 average credit
score and D-borrowers = 500-539 average credit score.
Purchase and Refinancing available.
These guidlines are changing monthly so call in at 1-352-5453-9598 for current updates.
Non-Conforming Jumbo Loans
Loans that are typically underwritten to Private Investor guidelines.
Loan amounts from $417,000 to $1,000,000 plus (commonly known as Jumbo loans).
Fixed rate and adjustable rates and terms available.
Buy-down options available.
Purchase and Refinancing available.
Adjustable Rate Loans
Residential loans are available with a minimal down payment on owner occupied properties.
Mortgage insurance required for loans over 80% loan to value (LTV).
Second homes and investor financing available.
Purchase and Refinancing available.
7/1 Program. Loan is a fixed rate for the first seven years and adjusts every 12 months
there after for the term of the loan. Maximum increase/decrease is 2% per year or 6% over
the life of the loan.
3/1 Program. Loan is a fixed rate for the first three years and adjusts every 12 months
there after for the term of the loan. Maximum increase/decrease is 2% per year or 6% over
the life of the loan.
1 Year Adjustable Program. Loan adjusts every 12 months for the term of the loan. Maximum increase/decrease is 2% per year or 6% over the life of the loan.
Of course over the years lenders are coming up with new variations of these types of loans.
2nd Mortgage Loans - Up to 100% CLTV
A second mortgage behind your existing first mortgage, the loan amount is determined by
the appraised value.
CLTV = Combined Loan To Value means the totaling of your 1st and 2nd mortgage, (i.e., 1st
of $60,000 + 2nd of $40,000 = $100,000) so, if your appraised value is $100,000 the
CLTV is 100%.
This loan is usually used for: cash back, consolidate debts, make home improvements, purchase
a new car, pay for your continued education or your child's education, payoff medical or tax bills
or to just invest.
An average credit score of 640 or higher is a primary requirement for qualification. Term and
rate will vary.
125% CLTV 2nd Mortgage Loans
A 125% CLTV 2nd means that the 2nd mortgage amount is 25% higher than the appraised value.
Example - your home is appraised at $100,000 your existing 1st mortgage is $50,000 your new
125% 2nd mortgage will be for $75,000 equaling $125,000, 125% CLTV (Combined Loan To Value)
or $25,000 = 25% over the appraised value of $100,000.
This loan is usually used for: cash back, consolidate debts, make home improvements, purchase a
new car, pay for your continued education or your child's education, payoff medical or tax bills or
to just invest.
An average credit score of 700 or higher is a primary requirement for qualification. Rates will vary
accordingly with credit scores (the higher the credit score the lower the interest rate). Terms are
normally for 15, 20 and 25 years.
Equity Lines of Credit Loans
Equity Lines of Credit can go up to 100% CLTV (Combined Loan To Value) of the appraised value.
Normally this is a 2nd mortgage but can be a non-conforming 1st mortgage.
Single family homes, 2 to 4 units owner occupied, second homes and approved condo units up
to 4 stories with a minimum square footage of 800 sq. ft. for all property types.
No manufactured/mobile homes or investment properties.
Credit score minimums are normally no lower than 640 average.
You only pay interest on monies used.
This loan is usually used for: cash back, consolidate debts, make home improvements, purchase
a new car, pay for your continued education or your child's education, payoff medical or tax bills
or to just invest.
VA-Veteran's Administration Loan
A government entitlement program for active, retired or reserve military personnel. A fixed
rate program requiring no down-payment and a Funding Fee of 2% are available.
Eligible Veteran must be on active duty or honorably discharged and served a minimum of 181
continuous days for peace time and 90 days war time.
No money down up to $417,000 construction to permanent loans are permitted. Funding Fee
requirements are the same as non-construction.
Up to 41% debt to income ratio for qualifying, better explained, no more than 41% of your total
monthly income can be used to pay your total housing payment (PITI) + your other monthly
debts (installment loans, revolving charges, etc).
Single family, owner occupied homes only.
Manufactured homes are eligible provided they are located on own land, affixed to a permanent
foundation, taxed as real property and the title must be fee simple.
Refinancing available, the veteran must own and occupy the property.
No second or vacation homes.
USDA-RHS - Rural Housing Service Loans
Formerly the "Farmers Home Administration" the new USDA-RDS is a government program for First Time Homebuyers.
Single family, owner-occupied "purchases only" for new or existing homes including modular housing, townhomes and condominiums.
100% financing based on appraised value.
Borrower can finance closing costs and prepaid's (i.e., insurances, taxes, etc.)
No monthly paid mortgage insurance.
No cash reserves or minimum cash contribution (no down) from borrower.
Income limitations and maximum loan amounts vary by county.
Fixed rate financing only for 30 years.
Funding Fee equaling .9% of loan amount, can be financed.
Qualifying ratios are 29%/41%, or better explained, no more than 29% of your total monthly income can be used to pay your housing payment (i.e., PITI, principle, interest, taxes and insurance) and no more than 41% of your total monthly income can be used to pay your total housing payment + your other monthly debts (i.e., installment loans, revolving charges, etc.).
Manufactured Home Loans
Must include land and be legally classified as Real Estate.
Must be a quality built double wide preferably in a recorded subdivision.
Permanently affixed to the foundation - does not have to be on a slab.
Constructed under HUD standards established in June of 1976.
Wheels, axles and hitches must be removed.
Pitched composition shingle roof.
The purchase of land and unit must represent a single real estate transaction and be secured by a note and mortgage. No personal property such as furniture can be included.
Property must be on a publicly maintained road.
Long term financing available if remaining economic life is sufficient.
Purchase and Refinances available.
Commercial and SBA (Small Business Administration) Loans
Commercial loans are normally to purchase, construct, renovate and refinance some type of business and/or property.
Types: Apartments, Hotel/Motels, Mixed-Use Properties, Construction and Renovation, Workouts, Office Buildings, Condo and Co-ops, Strip Centers and Most Existing Businesses.
Most conventional commercial loans will be $1,000,000 plus and most commercial loans under $1,000,000 will go SBA. This is not always the case because each transaction is different and investor programs vary, so it's always necessary to contact Charles R. Nelson Mortgage @ 1-352-543-9598 to see where your special need will best fit.
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