June 6, 2023
Mortgage Process

Loan Product Options

Wondering what each type of loan entails? Peoples Mortgage offers an array of mortgage loan products, each of which are described below. Choose from the following products to learn more.

·        VA Home Loans

·        VA High Balance / Jumbo Loans

·        FHA Home Loans

·        Conventional Mortgage Loans

·        Jumbo Home Loans

·        Non QM Loans

·        FHA 203K & Home Renovation Loans

·        USDA Home Loans

·        HUD Home Loans

·        Reverse Mortgage Loans

·        Commercial Loans


VA Home Loans

A VA home loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued by qualified lenders for purchases and refinances of up to 100% Loan to Value.

The VA loan was designed to offer long-term financing to eligible American Veterans or their surviving spouses (certain restrictions may apply).The basic intention of the VA direct home loan program is to supply home financing to eligible veterans to help purchase properties with no down payment. Most single-family homes are eligible, and Peoples Mortgage may be able to help approve condos that are not currently approved by the VA. In either case, you will want to work with a Loan Professional to review each individual property.

The VA loan allows for up to 100% financing without private mortgage insurance. A VA funding fee is a percentage of the loan amount and is paid to the VA; this fee may also be financed. Since there is no monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment.

VA Loan Features & Benefits

Loan Terms: Fixed Rate, ARM

You are eligible if you served under any of the following timelines and were honorably discharged:

·        2 years active duty

·        6 years reserves duty

·        90 days war time

·        181 days non-war time

Please don’t hesitate to call or email to review questions. We can get your Certificate of Eligibility within minutes and can review your eligibility with you.

VA High Balance / Jumbo Loans

The VA Jumbo loan (high-balance loan) is probably one of the most misunderstood and underutilized tools in the VA Benefits package. Other lenders struggle to know how to leverage this lending tool to its full and complete capacity on behalf of their VA borrowers. We have worked for years on making this tool work for our VA borrowers to its full capacity. If you are a veteran looking to purchase or refinance a high-end home, call us for a no hassle, no obligation review of your VA benefits so that you can confidently examine your options.

A VA funding fee is a percentage of the loan amount and is paid to the VA; this fee may also be financed.

VA Jumbo Loan Features & Benefits

·        Larger loan amounts

·        Low down payment

·        No upfront or monthly Mortgage Insurance

·        Low interest rates for Fixed and ARM loans

·        Easy closings

·        VA funding fee will apply

·        FICO scores as low as 620

·        Purchase, refinance, and even cash out refinances are acceptable


FHA Home Loans

An FHA home loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans were originally designed for low to moderate income borrowers who were unable to make a large down payment. FHA loans allow the borrower to borrow up to 96.5% of the value of the home. The 3.5% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers.

FHA Home Loan Features & Benefits

·        Upfront and Monthly Mortgage Insurance requirement

·        3.5% down payment

·        Lower credit scores accepted

·        Minimum reserves

·        100% of the down payment can come from a gift

·        No income qualifications available (for Streamline Refinances only)


Conventional Mortgage Loans

A conventional mortgage loan is a type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac purchase 35-50% of all mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages. Conventional mortgage loans are typically only an advantage to borrowers with outstanding credit scores and low debt-to-income ratios.

Conventional Mortgage Loan Features & Benefits

·        Maximum loan amounts apply

·        3%-5% minimum down payment

·        Private Mortgage Insurance is required on LTVs over 80%

·        Mortgage Insurance options include monthly, upfront, split, financed, and lender paid mortgage insurance


Jumbo Home Loans

A Jumbo Loan is designed for those looking to go above the county limit. Due to the high number of defaults on these types of loans in the last few years, these guidelines are constantly changing and are usually very specific to the individual borrower and their financial goals. It is critical on these loans that borrowers complete a full loan application with their loan professional, as well as submit all documentation for review by an Underwriter well before placing an offer on a home. These borrowers always have outstanding credit and income, but that usually comes with intricate financial and tax structures. To avoid any headaches and to get aligned with the best loan product, it is best to get a full approval including a full review of the assets to be used in the transaction and the remaining reserves.

Jumbo Home Loan Features & Benefits

·        Home loans up to $3,000,000

·        Fixed and ARMs available

·        1st and 2nd mortgages to maximize down payment


Non-QM Loans

Non-Qualified Mortgage Loans are tailored for those who don’t necessarily fit in the box. Maybe It’s a self-employment situation where bank statements are preferred to verify income instead of tax returns. Or maybe you’d like to purchase, and the potential new rental income is needed to qualify. At Peoples Mortgage Company we have several Non-QM Loans and a team of Underwriters who use common sense when evaluating each loan scenario.


FHA 203K & Home Renovation Loans

Simply put—buy a home and remodel it with the same loan. Purchase and renovation loans require three professionals to make sure you navigate this product and close properly: a solid HUD consultant, a great contractor, and a licensed Loan Officer with a company that knows how to close this product.

Purchase and Renovate Loan Features & Benefits

·        Maximum loan amount is subject to county loan limits

·        3.5% down payment

·        Lower credit scores accepted

·        Minimum reserves

·        Upfront and monthly Mortgage Insurance premiums

·        100% of the down payment can come from a gift


USDA Home Loans

USDA home loans are primarily used to help individuals purchase homes in rural areas. Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. Please feel free to call or email to find out if you or a particular property qualify!

USDA Home Loan Features & Benefits

·        Very specific income and property qualifications

·        Upfront and Monthly Guarantee Fee will apply

·        100% LTV


HUD Home Loans

HUD home loans are for homes that have been foreclosed and HUD as retained ownership of the property. This is great if you are a borrower looking to get into a home with very little down and at the lowest price possible. This is not for people that are not ready to make significant improvements to the property. Since they were foreclosed, often the homes have been damaged and may require renovation. Inventory of homes available varies by area.

HUD Home Loan Features & Benefits

·        FHA home loan product

·        Specific to the property



Reverse Mortgage Loans

With a Reverse Mortgage loan, borrowers over the age of 62 can convert their home equity into cash and defer the payment until their death, or until they sell their home. Each month, the interest is added to the loan balance, which can eventually rise to exceed the value of the home. Typically, the borrower, or their estate, is not required to repay any additional loan balance in excess of the value of the home. Reverse Mortgage Loans allow seniors to enjoy their golden years without a mortgage payment.*

*Consumer is responsible for property taxes, homeowners insurance, homeowners association dues, and property maintenance.

Reverse Mortgage Loan Features & Benefits

·        Borrower must be over 62 years of age

·        Property must be primary residence

·        No monthly mortgage payment, however, borrower is responsible to pay property tax, insurance and any HOA fees (if applicable)

·        Minimal income and credit requirements

·        You remain the owner of your home

·        Generally does not affect Social Security or Medicare benefits

·        Income from a reverse mortgage is not taxable

·        Money can be used for any purpose such as home repairs & maintenance, long-term care, medical needs, or paying debt

**These materials are not from HUD or FHA and have not been approved by a government agency. Property subject to foreclosure should loan terms not be adhered to.


Commercial Loans

Your business is unique, and our commercial loans are designed specifically to fit your needs. Whether your dream is to start, expand, grow, refinance your business, we customize a financing solution to your business.

Commercial and Business Loan Features and Benefits

·        Commercial real estate and business loans

·        SBA loans

·        Competitive fixed and floating rates

·        Available in all 50 states

·        Loans up to $50,000,000

If you have any questions reach out to a Loan Officer today!