Every homebuyer’s situation is unique, which is why working with an expert is crucial to finding the loan program that best fits your needs. With so many options available, it’s important to partner with the right lender. At Absolute Mortgage & Lending, we are committed to delivering exceptional service and a wide range of mortgage products tailored to your individual requirements. Our team ensures that each client receives personalized solutions, competitive pricing, and the dedicated attention they deserve. By staying at the forefront of new technology and industry trends, we provide an unparalleled experience that makes the mortgage process smoother and more efficient. Whether you’re purchasing, refinancing, or exploring other options, we’ll work with you every step of the way to ensure a seamless experience.
CONVENTIONAL HOME LOANS
A Conventional Home Loan is a mortgage offered by private lenders and is not insured or guaranteed by the government. It follows guidelines set by Fannie Mae and Freddie Mac and is commonly used for buying a home or refinancing an existing mortgage. These loans typically require a credit score of 620 or higher and a down payment of at least 3-5%, though a larger down payment can help reduce monthly costs. Conventional loans come with fixed or adjustable interest rates and offer various term lengths, making them a flexible choice for different financial situations. Borrowers who put down less than 20% may need to pay private mortgage insurance (PMI) until they reach enough home equity.
FHA HOME LOANS
An FHA Home Loan is a mortgage insured by the Federal Housing Administration (FHA), designed to help first-time homebuyers and those with lower credit scores qualify for homeownership. It allows for a lower down payment, typically as low as 3.5%, and has more flexible credit requirements compared to conventional loans. FHA loans are issued by private lenders, but the FHA provides insurance to reduce the lender’s risk. These loans come with fixed or adjustable interest rates and require mortgage insurance premiums (MIP), which help protect the lender in case of default. FHA loans are commonly used by buyers looking for a more accessible path to homeownership with lower upfront costs.
Non-QM LOANS
A Non-QM (Non-Qualified Mortgage) Loan is a type of home loan that does not meet the strict lending standards of traditional qualified mortgages. It is designed for borrowers who may not fit the typical income or credit verification requirements, such as self-employed individuals, real estate investors, or those with irregular income sources. Instead of relying solely on W-2s or tax returns, Non-QM loans may use bank statements, assets, or alternative income documentation for qualification. These loans offer more flexible terms and can include interest-only payments, higher debt-to-income ratios, or alternative credit evaluation methods. Non-QM loans are an option for buyers who need customized lending solutions that don’t fit within conventional mortgage guidelines.
COMMERCIAL LOANS
A Commercial Loan is a type of financing used by businesses to purchase, develop, or refinance commercial properties or fund business operations. These loans are typically offered by banks, credit unions, or private lenders and are used for properties such as office buildings, retail spaces, warehouses, and multifamily housing. Unlike residential mortgages, commercial loans often have different qualification requirements, including business financials, revenue projections, and creditworthiness. They may come with fixed or variable interest rates and have shorter loan terms, often requiring a balloon payment or refinancing at the end of the term. Commercial loans are structured based on the business’s financial health and the projected income from the property or investment.
DSCR/SHORT-TERM RENTAL LOANS
A DSCR (Debt Service Coverage Ratio) Loan is a type of mortgage designed for real estate investors to finance rental properties, including short-term vacation rentals. Unlike traditional loans that require proof of personal income, DSCR loans focus on the property’s rental income potential to determine eligibility. Lenders calculate the Debt Service Coverage Ratio (DSCR) by comparing the property’s rental income to its mortgage payments, ensuring the income is sufficient to cover the loan. These loans are commonly used for Airbnb, VRBO, and other short-term rental properties, offering investors a way to secure financing based on the cash flow of the property rather than their personal income or employment history.
