Loan types

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FNMA and FHLMC loan programs that conform to the standard:

• Purchase: These loans are for borrowers who are buying a home for the first time or refinancing an existing mortgage.
• Refinance: These loans are for borrowers who want to lower their interest rate, shorten their loan term, or get cash out of their home equity.
• Cash-out: These loans allow borrowers to borrow more than the current value of their home, which can be used for anything from home improvements to debt consolidation.

All of these loans are available for primary, secondary, and investment properties. Primary properties are homes that borrowers live in, secondary properties are vacation homes or rental properties, and investment properties are properties that borrowers buy with the intention of selling them for a profit.

30-year fixed loans are the most common type of mortgage, and they offer borrowers a fixed interest rate for the life of the loan. This means that borrowers can budget for their monthly payments with confidence, knowing that they will not go up over time.

Here are some of the highlights of FNMA and FHLMC loan programs:

• Low down payment requirements: Borrowers can qualify for a mortgage with a down payment as low as 3%.
• Flexible credit requirements: Borrowers with less-than-perfect credit may still be eligible for a mortgage.
• Government-backed loans: FNMA and FHLMC loans are backed by the U.S. government, which means that borrowers have some protection in case of default.

CalHFA DPA Loan Programs

CalHFA offers down payment assistance programs to help low- to mid-income borrowers purchase a home. These loans have deferred payments, which means that borrowers do not have to start making payments on the loan until they sell their home or refinance.

There are two main types of CalHFA DPA loans:

• My Home: This loan is for first-time homebuyers and provides a down payment assistance loan of up to 3.5% of the purchase price.
• ZIP (Zero Interest): This loan is for borrowers who have a good credit score and can afford to make a down payment of at least 5%. The ZIP loan provides a zero-interest loan for up to 2% of the purchase price.

To qualify for a CalHFA DPA loan, borrowers must meet certain income, credit, and residency requirements. They must also complete a homebuyer education course.

CalHFA DPA loans can be a great way for low- to mid-income borrowers to purchase a home. The down payment assistance can help borrowers make a down payment and the deferred payments can help keep their monthly mortgage payments affordable.

Here are some of the benefits of CalHFA DPA loans:

• Down payment assistance: CalHFA DPA loans can help borrowers make a down payment on a home, which can make it easier to qualify for a mortgage.
• Deferred payments: CalHFA DPA loans have deferred payments, which means that borrowers do not have to start making payments on the loan until they sell their home or refinance. This can help borrowers keep their monthly mortgage payments affordable.
• Homebuyer education: CalHFA DPA loan recipients are required to complete a homebuyer education course. This course can help borrowers learn about the home buying process and the responsibilities of homeownership.

FHA Annual MIP Reduction

Forward Lending is now accepting submissions for qualifying FHA loans that are submitted and scheduled to close on or after March 1, 2023. These loans are eligible to receive the annual MIP Reduction.

The U.S. Department of Housing and Urban Development (HUD) recently announced a 30 basis-point reduction to the FHA Annual Mortgage Insurance Premium (annual MIP) rates charged to homebuyers who obtain an FHA-insured mortgage. This means that the annual MIP rate will be reduced from 0.85% to 0.55%.

This reduction is a great opportunity for Forward Lending to potentially qualify more borrowers for FHA loans. The reduction is effective for mortgages endorsed for insurance by FHA on or after March 20, 2023.

The FHA annual MIP reduction applies to all eligible property types, including:

• Single-family homes
• Condominiums
• Manufactured homes
• All eligible loan-to-value ratios
• All eligible base loan amounts

Please refer to the current Mortgagee Letter for qualifying programs and exceptions.

If you have any questions about the FHA annual MIP reduction, please contact your Forward Lending loan officer.

VA Loan Programs

The U.S. Department of Veterans Affairs (VA) offers a variety of loan programs to help veterans and active-duty military personnel purchase a home. These loans are available with no down payment and offer flexible terms.

Highlights of VA Loan Programs

• 100% LTV Loans for Purchase, Cash-out: VA loans can be used to purchase a home with no down payment. They can also be used to refinance an existing mortgage or to take out a cash-out loan.
• 125% for VA IRRRL: VA IRRRL loans are a type of refinance loan that allows veterans to borrow up to 125% of the appraised value of their home. This can be helpful for veterans who need to make home improvements or who want to consolidate debt.
• Max Loan Amounts to $1.5 Million for purchase loans and VA IRRRL: The maximum loan amount for a VA loan is $1.5 million. This applies to both purchase loans and VA IRRRL loans.
• $1 million Max Loan Amount for Cash-Out Loans: The maximum loan amount for a cash-out VA loan is $1 million.
• Flexible Loan Terms: VA loans offer flexible loan terms, including 15-, 20-, 25-, 30-, and 35-year fixed-rate mortgages.
• Available on TheTrack: VA loans are available on TheTrack, our TPO portal technology where you can register, submit, and disclose in minutes.

USDA Single Family Housing Programs

Our USDA Single Family Housing Programs offer homebuyers and homeowners in eligible rural areas the opportunity to purchase or refinance a home with no down payment and low closing costs.

Highlights of USDA Single Family Housing Programs

• Owner-occupied, single-unit properties only: The properties must be owner-occupied and single-unit only.
• Purchase, Rate/Term Refi and Streamline Refi: The programs are available for purchase, rate/term refinance, and streamline refinance.
• Max LTV/CLTV 100 (Purchase, Refi), 105% Streamline: The maximum loan-to-value (LTV) ratio for purchase and refinance is 100%, and the maximum LTV ratio for a streamline refinance is 105%.
• 30 year fixed term: The loans have a 30-year fixed term.
• Max Loan Amount, FNMA Limits: The maximum loan amount is the same as the maximum loan amount allowed by Fannie Mae.
• High Balance Max Loan Amount, No Published Limit: There is no published limit for the maximum loan amount for high-balance loans.
• Must Meet USDA section 502 criteria: Borrowers must meet USDA section 502 criteria, which includes income and asset requirements.
• USDA Loan Programs: All loans must be eligible for guarantee by USDA, meet Forward Lending requirements, and be eligible for GNMA.
• Available on TheTrack: The loans are available on TheTrack, our TPO portal technology where you can register, submit, and disclose in minutes.

Innovative Non-QM Programs

We offer a variety of innovative Non-QM programs to broaden our brokers' market and help them close more loans. These programs offer borrowers more flexibility and options than traditional mortgage programs.

Highlights of Non-QM Programs

• Bank Statement / Alt Doc: Borrowers can qualify with bank statements or alternative documentation, such as tax returns or pay stubs.
• Asset Depletion: Borrowers can use their assets to offset debt, which can help them qualify for a larger loan.
• DSCR: Borrowers can qualify with a debt service coverage ratio (DSCR) as low as 1.25x.
• Full Doc: Borrowers can qualify with a traditional full documentation mortgage.
• 1099 Only: Borrowers who only receive 1099 income can qualify for a mortgage.
• 40-Year (Fully Amortized): Borrowers can choose a 40-year fully amortized loan, which can lower their monthly payments.
• 40-year I/O: Borrowers can choose a 40-year interest-only loan, which can be a good option for borrowers who plan to pay off the loan early.
• VOE: Borrowers can qualify with a verification of employment (VOE) instead of a traditional employment verification.

Available on the Track

All of our Non-QM programs are available on TheTrack, our TPO portal technology. This allows brokers to register, submit, and disclose loans in minutes.

If you are a broker and you are interested in learning more about our Non-QM programs, please contact us.