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Loan Types

Explore Our Home Loan Options

Our focus on personalized service ensures that you receive mortgage solutions tailored to your specific needs. We prioritize your goals and work diligently to meet them.

Fixed Rate Mortgage

What are fixed rate mortgages?

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A fixed rate loan provides stability with a set interest rate that remains unchanged for the life of the loan, offering a predictable monthly payment. Good for borrowers who want stability and security in their monthly housing costs, especially those staying in their home long-term.

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Fixed Rate Mortgages

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  • Provides a set interest rate that remains unchanged for the life of the loan, offering a predictable monthly payment.

  • Offers stability and security in the monthly housing costs.

  • Protects against changes in the interest rate market.

  • Good choice for borrowers who plan to stay in their home for an extended period of time.

  • Provides peace of mind knowing that the monthly payment will remain the same.

  • Can allow for easier budgeting and financial planning.

  • Can be a good option for those who do not want to take on the risk of rising interest rates.

  • May offer a lower interest rate compared to adjustable rate loans.

  • Can be a good choice for those who want to lock in a low interest rate.

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Adjustable Rate Mortgages

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  • A fixed rate loan offers a set interest rate that remains unchanged for the life of the loan.

  • The interest rate is determined at the time the loan is originated and does not change.

  • The monthly mortgage payment consists of both principal and interest, and remains the same throughout the life of the loan.

  • Fixed rate loans can have a term of 10, 15, 20, 25, or 30 years.

  • Fixed rate loans are typically offered by banks, credit unions, mortgage companies, and other financial institutions.

  • The interest rate on a fixed rate loan may be slightly higher than an adjustable rate loan, but the monthly payment remains the same.

  • The lender may require a down payment, an appraisal, and proof of income and employment.

  • Fixed rate loans may have origination fees, closing costs, and other fees associated with obtaining the loan.

  • Fixed rate loans may have a pre-payment penalty for paying off the loan early.

DPA

What are DPA loans?

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A Down Payment Assistance (DPA) loan helps cover a portion of the down payment on a home, making homeownership easier for the borrower. DPA loans are often provided by government agencies, non-profits, or private lenders with favorable terms and can lower the amount needed for a down payment.

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Why choose a DPA loan?

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  • Provides financial assistance to help cover the cost of a down payment, making homeownership more accessible.

  • Offers more favorable terms compared to other types of loans.

  • Often provided by government agencies, non-profit organizations, or private lenders.

  • Helps lower the amount of money a borrower needs to save up for a down payment.

  • Can make it easier to become a homeowner sooner.

  • Can be a valuable option for those with limited funds for a down payment.

  • Can increase the affordability of a home by lowering the out-of-pocket expenses for the borrower.

  • Can reduce the burden of debt and make homeownership more manageable for the borrower.

  • Can be done with FHA and Conventional Financing.

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How DPA loans work

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  • May come in the form of a grant, loan, or a combination of both.

  • The amount of assistance offered can vary depending on the lender and the specific program.

  • The DPA loan may have its own terms and conditions, such as interest rates and repayment requirements.

  • May require the borrower to attend homebuyer education classes or meet certain income requirements.

  • The DPA loan must be repaid if the property is sold or refinanced within a specified time frame.

  • The DPA loan may have a first or second mortgage lien position.

  • The use of the DPA loan may impact the amount of the borrower’s monthly mortgage payment.

 

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Non-QM

What are Non-QM loans?

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A Non-QM loan, or Non-Qualified Mortgage loan, is a type of mortgage loan that does not meet the standards set by the government-sponsored enterprises (GSEs) for a qualified mortgage. This type of loan is ideal for borrowers who do not meet the strict guidelines of a qualified mortgage, such as those with irregular income or a high debt-to-income ratio.

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Why choose a Non-QM loan

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  • Allows you to qualify based on alternative methods, instead of the traditional income verification required for most loans. Common examples include bank statements or using your assets as collateral.

  • Flexible underwriting guidelines, making them a potential option for borrowers who don’t meet the criteria of a qualified mortgage.

  • Alternative financing options for those with irregular income, self-employment, or high debt-to-income ratios.

  • Suitable for borrowers with less-than-perfect credit or unique financial situations.

  • A convenient and cost-effective way to finance a home purchase or refinance.

  • Competitive interest rates and flexible terms.

  • Tailored to individual needs, including loan amount, interest rate, and term.

  • Opportunity to obtain a mortgage even if one does not meet the criteria for a qualified mortgage.

  • Becoming increasingly popular and widely available, making it easier to find a lender.

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How Non-QM loans work

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  • 3-,12- and 24-month bank statement Loan Programs

  • Asset Depletion/ Asset Qualifier Programs

  • One year Income Doc Program

  • Non-Warrantable condominium programs

  • 2- and 3-Month Bank Statement w 3rd Party P & L

  • Debt Service Coverage Ratio DSCR

  • Foreign National and ITIN Programs

  • 4-year Seasoning on Foreclosure

  • 40 Year Fixed Rate

  • Reverse Mortgages

  **Cornerstone First Mortgage, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

Jumbo

What are Jumbo loans?

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A jumbo loan is a great option for someone who is looking to finance a high-end property that exceeds the conforming loan limit and requires a loan amount larger than what is typically offered by government-sponsored enterprises. These loans are ideal for borrowers who have a strong financial profile, including a high credit score and a significant down payment, and who are looking for a loan that offers a competitive interest rate and flexible terms.

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Why choose a jumbo loan

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  • High loan amounts: Jumbo loans are designed for borrowers who need to finance an expensive property or a property in a high-cost area, with loan amounts that exceed the limit for conforming loans.

  • Flexible underwriting standards: Jumbo loans may offer more flexible underwriting standards compared to conventional loans, making them accessible to a wider range of borrowers.

  • Competitive interest rates: Jumbo loans can offer competitive interest rates, making them a cost-effective option for eligible borrowers.

  • Tailored loan options: Jumbo loan borrowers often have access to tailored loan options, such as adjustable-rate or interest-only mortgages, which can meet their specific needs and financial goals.

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How jumbo loans work

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  • Exceed the conforming loan limits set by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac.

  • Typically used to finance high-end properties, including luxury homes and high-priced real estate.

  • Loan amounts can range from several hundred thousand dollars to several million dollars.

  • Typically require a higher credit score and a larger down payment than conforming loans.

  • Often have stricter underwriting guidelines, including a more thorough review of the borrower’s financial situation.

  • Interest rates may be slightly higher than conforming loan rates due to the higher risk associated with these loans.

  • Can be fixed-rate or adjustable-rate mortgages (ARMs).

  • Jumbo loans are not backed by GSEs, so they are usually offered by private lenders or banks.

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Rehab

What are rehab loans?

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A rehab loan, also known as a renovation loan, is a type of loan used to finance the purchase and renovation of a property. It is a good option for someone who wants to buy a fixer-upper or an older property in need of repairs and upgrades, as it allows them to combine the cost of the purchase and the renovation into one loan. Rehab loans typically offer flexible terms and may include various options for financing the renovation, making it a convenient and cost-effective way to finance a home renovation project.

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Why choose a rehab loan

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  • Funds for renovation: Rehab loans provide borrowers with funds specifically for the purpose of renovating a property, which can improve its value and livability.

  • Single loan for purchase and renovation: With a rehab loan, borrowers can finance both the purchase of a property and its renovation costs into a single loan, simplifying the financing process.

  • No separate renovation costs: With a rehab loan, there’s no need for the borrower to secure separate financing for the renovation, reducing the hassle and costs of securing additional financing.

  • Increased property value: By renovating a property with a rehab loan, the borrower can increase the property’s value and potentially improve their return on investment.

  • Easy process: Rehab loans are often streamlined, making it easier for borrowers to obtain financing for their renovation project.

The VA also offers a similar option for military and veterans to purchase a home and finance the required renovations to bring it up to standards set by the VA.

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How rehab loans work

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  • Eligibility: To be eligible for a rehab loan, the property must typically meet certain conditions, such as being a single-family residence or a multi-unit property.

  • Application: Borrowers must complete a loan application and provide documentation of their income, assets, and debts, as well as the planned renovation project.

  • Loan Approval: After the loan application is submitted, the lender will review the application and make a decision on loan approval.

  • Funds release: If the loan is approved, the funds will be released in stages, typically as the renovation work is completed.

  • Repayment: Rehab loans have a fixed or adjustable interest rate and a repayment term of typically 15 or 30 years. Borrowers make monthly payments to the lender, which go towards paying off both the principal and interest on the loan.

USDA

What are USDA loans?

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USDA loans are designed to help low- and moderate-income individuals and families buy homes in rural areas. They are particularly well-suited for first-time homebuyers who have limited savings or who are unable to secure conventional financing.

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Why choose a USDA loan

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  • No down payment requirement: USDA loans offer 100% financing, meaning borrowers don’t have to make a down payment.

  • Low interest rates: USDA loans typically have lower interest rates compared to conventional or FHA loans, making them more affordable for borrowers.

  • Flexible credit requirements: USDA loans have more flexible credit requirements compared to conventional loans, making them accessible to a wider range of borrowers.

  • No pre-payment penalties: Borrowers are free to pay off their USDA loan early without incurring any penalties.

  • Supports rural areas: USDA loans support the development of rural communities by making it easier for residents to buy homes.

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How USDA Loans work

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  • Eligibility: To be eligible for a USDA loan, the property must be located in a designated rural area, and the borrower’s income must not exceed the USDA’s income limits.

  • Application: Borrowers must complete a loan application and provide documentation of their income, assets, and debts.

  • Loan Approval: After the loan application is submitted, the USDA will review the application and make a decision on loan approval.

  • Guarantee Fee: USDA loans require a one-time guarantee fee, which is a form of mortgage insurance that protects the lender in case of default.

  • Repayment: USDA loans have a fixed interest rate and a repayment term of 30 years. Borrowers make monthly payments to the lender, which go towards paying off both the principal and interest on the loan.

**Cornerstone First Mortgage, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

VA

What are VA loans?

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VA Loans offer options for veterans, service members, and their surviving spouses.The VA Loan is a Zero Down Payment loan for eligible veterans. Purchase or refinance up to 100% of your homes value with no monthly mortgage insurance.

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Why choose a va home loan

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  • No down payment required

  • No mortgage insurance required

  • Lower credit scores may be accepted

  • No prepayment penalty

  • Lower interest rates compared to
    conventional loans

  • Ability to finance closing costs

  • No limit on how many times the loan can be used

  • Available for eligible veterans and active-duty military personnel

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How VA Loans Work

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  • 30-, 25-, 20- and 15-year terms are all available with fixed rates.

  • 5-year adjustable-rate mortgage available.

  • Jumbo VA loans Available up to 2 million

  • Typically, lower rates and less restrictive qualification standards vs Conventional financing.

  • VA Streamline Refinance with a reduced funding fee and flexible documentation requirements – available for veterans currently in VA loans.

  • No monthly PMI (Private Mortgage Insurance).

  • VA loans are governed by the U.S. Department of Veterans Affairs.

  • Pay your mortgage off at any time without pre-payment penalties.

  **Cornerstone First Mortgage, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

FHA LOANS

What are FHA loans?

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FHA loans are mortgages insured by the Federal Housing Administration (FHA). They are a popular option for first-time homebuyers because of their low down payment requirements and more lenient credit and income qualifications.

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Why choose an FHA home loan

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  • Flexible credit qualifications, allowing for some past credit issues

  • Lower interest rates compared to some other loan options

  • Available to first-time homebuyers and those with limited savings

  • Available for a wide range of property types, including single-family homes, condos, and manufactured homes

  • Can be used for home improvements and energy-efficient upgrades

  • Insured by the federal government, providing added security for lenders

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How FHA loans work

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  • Fixed rates available.

  • Typically, lower rates and less restrictive qualification standards vs Conventional financing. Credit scores as low as 580.

  • Gift for down-payment acceptable

  • Rate and term / Cash-out refinance on your primary home.

  • **Cornerstone First Mortgage, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

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