Loan Programs
FHA
Credit Score
580
Down Payment
3.5%
Debt to Income
54%
Closing Cost
4%-6%
Key Points:
FHA Upfront Cost: 1.75% (One-Time Fee, Can be added to the loan)
Mortgage Insurance:
Lifetime of the Loan if Downpayment lower than 10%
Removes after 11 years if downpayment is more than 10%
Example:
Loan Amount $500,000 x .55%
$2,750 per year / 12 months = $229.17 per month
Must be Primary Residence for at least 1 year
1-4 Units
2 Years Tax Returns Required
Gifts Allowed:
Only need Gift Letters if Deposit is 50% more than Monthly Income
Example: Monthly Income: $5,000 (any deposit more than $2500 will need LOX)
All loan programs Requires 3 Open Trade lines (open accounts)
New York High Cost Area Conforming Loan Limits:
1 Unit - $1,149,825
2 Unit - $1,472,250
3 Unit - $1,779,525
4 Unit - $2,211,600
Debt to Income:
Front End: 31%
Back End: 54%
Waiting Period:
Bankruptcy - 2 Years
Short Sale - 3 Years
Foreclosure - 3 Years
CONVENTIONAL
Credit Score
620
Down Payment
5%
Debt to Income
49%
Closing Cost
3%-5%
Key Points:
Mortgage Insurance - Removes at 20% equity (80% LTV)
Downpayment
Primary Residence for at least 1 year:
1 Unit = 5%
2 Units = 15%
3-4 Units = 20%
Investment
1 Unit = 20%
2+ Units = 25%
Must be under Personal Name
​Investment cannot be under LLC
Can be Primary OR Investment Rental
First Time Home Buyer Benefits:
Income below AMI: AREA MEDIAN INCOME (Link)
Better Interest Rates and LLPA Savings
New York High Cost Area Conforming Loan Limits:
1 Unit - $1,149,825
2 Unit - $1,472,250
3 Unit - $1,779,525
4 Unit - $2,211,600
Front End DTI 43%
Back End DTI 49%
Waiting Period:
Bankruptcy - 4 Years
Short Sale - 4 Years
Foreclosure - 7 Years
HOMEREADY & HOMEPOSSIBLE
Credit Score
620
Down Payment
3%
Debt to Income
49%
Closing Cost
3%-5%
Key Points:
Conventional Loan with 3% Downpayment
INCOME: Must be BELOW 80% of AREA MEDIAN INCOME (Link)
Mortgage Insurance - Removes at 20% equity (80% LTV)
Mandatory Homeownership Education
Can be Primary OR Investment Rental
New York High Cost Area Conforming Loan Limits:
1 Unit - $1,149,825
2 Unit - $1,472,250
3 Unit - $1,779,525
4 Unit - $2,211,600
Waiting Period:
Bankruptcy - 4 Years
Short Sale - 4 Years
Foreclosure - 7 Years
DSCR - No Income Check
DEBT SERVICE COVERAGE RATIO
Credit Score
720
Down Payment
20%
Closing Cost
5%-7%
No Income
Check
Designed to assist new and experienced real estate investors in financing their properties, qualifying based on the cash flow generated by the investment.
Key Points:
No Income Check: No Tax Returns
Qualification: Rental Income must cover the Mortgage Payment (Appraisal)
Investment Only (cannot be for primary residence)
Downpayment:
1 Unit = 20%
2+ Units = 25%
Reserves:
3-6 Months of reserves required (depends on lender and your FICO)
Prepayment Penalty (6 month Interest) if refinanced within 1-5 years*
Gift Funds Allowed
Borrower Paid Compensation
Loan Amount:
Up to $3 Million
Bank Statement Loan
Credit Score
720
Down Payment
20%
Debt to Income
49%
Closing Cost
5%-7%
Key Points:
No Income Check: No Tax Returns
Qualification: 12 or 24 Months of Bank Statements (Personal & Business)
(No NSF) Non-sufficient funds Transactions in past 24 months
Can be Primary OR Investment Rental
Downpayment:
1 Unit = 20%
2+ Units = 25%
Reserves: 3 Months of reserves required
Prepayment Penalty (6 month Interest) if refinanced within 1-5 years*
Borrower Paid Compensation
No Gift Funds allowed
Loan Amount:
Up to $4 Milion
Non-QM 1099
Credit Score
720
Down Payment
20%
Debt to Income
55%
Closing Cost
5%-7%
Key Points:
We can use 90% of your 1099 GROSS Income
1099s for 2 years
1 year history with same employer
20% Downpayment = 6 Months of reserves required
25% Downpayment = No Reserves required
Gift Funds Allowed
Prepayment Penalty (6 month Interest) if refinanced within 1-5 years*
With no prepayment penalties on owner-occupied home
Borrower Paid Compensation
Loan Amount: Up to $4 Million
​
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1099s for the last 2 years from the same employer – Stability is the key to getting mortgage approval. ​
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Paystub showing their YTD income -OR- Acknowledgement from their employer that their 1099 income matches what they report help us to know they can afford the loan. If they do not have a YTD paystub, a written Verification of Employment works too.​
-
Proof that they do not have mandatory expenses – Mandatory job expenses differ from the optional expenses they write off. ​
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Letter from their CPA regarding their expenses –Most 1099 contractors have expenses – it comes with the territory.
Why use this1099s loan program instead of QM loan?
Instead of tax returns, lender uses actual wages (up to 90%) from their 1099 form
as qualifying income. Client qualifies for much higher amount.
HELOC
Credit Score
680
Down Payment
0%
Debt to Income
49%
Closing Cost
3%-5%
Key Points:
HELOC - Home Equity Line of Credit
ARM - Adjustable Rate Mortgage
Current Loan:
Does NOT affect first mortgage
No Late payment on first mortgage allowed
Combined Loan to Value = 90%
Draw Period = 3,5, or 10 years
(After First Draw at closing, borrower must wait 90 days for next draw)
First 3,5, 10 years Interest Only Payments
Repayment Period = 10-20 years
Cash Out:
Primary Residence - loan up to $500,000
Rental Investment - loan up to $350,000
FHA Limited 203(k)
Credit Score
580
Down Payment
3.5%
Debt to Income
54%
Closing Cost
4%-6%
Key Points:
1 Loan = Purchase + Renovation
Up to $75,000 for Renovation
​
Appraisal:
An appraiser assesses the
current value of the property
and the estimated value after repairs.
Contractor Estimates:
The borrower obtains detailed estimates
from licensed contractors
for the required work.
FHA Upfront Cost: 1.75% (One-Time Fee, Can be added to the loan)
Mortgage Insurance:
Lifetime of the Loan if Downpayment lower than 10%
Removes after 11 years if downpayment is more than 10%
Example:
Loan Amount $500,000 x .55%
$2,750 per year / 12 months = $229.17 per month
Must be Primary Residence for at least 1 year
1-4 Units
2 Years Tax Returns Required
Gifts Allowed:
Only need Gift Letters if Deposit is 50% more than Monthly Income
Example: Monthly Income: $5,000 (any deposit more than $2500 will need LOX)
All loan programs Requires 3 Open Trade lines (open accounts)
New York High Cost Area Conforming Loan Limits:
1 Unit - $1,149,825
2 Unit - $1,472,250
3 Unit - $1,779,525
4 Unit - $2,211,600
Debt to Income:
Front End: 31%
Back End: 54%
Waiting Period:
Bankruptcy - 2 Years
Short Sale - 3 Years
Foreclosure - 3 Years
ITIN
Individual Taxpayer Identification Number
Credit Score
680
Down Payment
20%
Debt to Income
50%
Closing Cost
4%-6%
Key Points:
For individuals who have a Tax ID
but do not have a Social Security Number.
​
A valid ITIN card or IRS ITIN letter and
an unexpired government photo ID required.
Non-permanent residents allowed
1-4 Units
2 Years Tax Returns Required
Gifts Allowed:
borrower must contribute at least 5% from their own funds
on primary and second home and at least 20% on investment.
3 months of reserves required
Loan Limit:
$1.5 Million
Waiting Period:
Bankruptcy - 2 Years
Foreclosure - 2 Years
VA Loan
Veterans Affairs-backed Mortgage
Credit Score
580
Down Payment
0%
Debt to Income
49%
Closing Cost
4%-6%
Key Points:
A VA loan is a U.S. Department of
Veterans Affairs-backed mortgage
for eligible service members, veterans,
and surviving spouses.
​
Veterans:
Based on service length
90 days wartime, 181 days peacetime.
Active Duty:
After 90 consecutive days of service.
​
National Guard/Reserves:
After 6 years of service
or 90 days under Title 32 orders.
​
Surviving Spouses:
Of service members who died in service
or from service-connected disabilities.
​
Primary residence Only
Valid Certificate of Eligibility (COE)
with sufficient entitlement.
No Monthly Mortgage Insurance​
No Downpayment Required ​
VA funding fee up to 3.3% per VA guidelines
(may be financed into the loan amount;
exemptions may apply)
​​
1-4 Units
2 Years Tax Returns Required
Gifts Funds Allowed
Seller Concession:
up to 4%
Waiting Period:
Bankruptcy - 2 Years
Foreclosure - 2 Years
Commercial Loans
Credit Score
700
Down Payment
20%
Debt to Income
45%
Closing Cost
5%-7%
Key Points:
Ready to Buy Your Building? Let us help you.
​
Whether you’re purchasing or refinancing
a commercial property,
we’ll help you evaluate your options and
structure financing that fits your goals.
Commercial financing options for
Business Owners, Investors,
and Healthcare professionals.
Financing for building, expansion, equipment, or working capital needs
Owner-occupied
Borrower’s business operates there
​
Investment
Income-producing property leased to tenants
​
Common commercial property types:
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Office
(medical office, professional office, mixed tenant office)
​
Retail
(strip centers, storefront retail, service retail)
​
Industrial
(warehouse, distribution, light manufacturing, flex/warehouse)
​
Multifamily
(5+ units) (apartment buildings; treated as commercial)
​
Mixed-Use
(Retail/storefront on 1st floor + apartments above)
​
Downpayment:
20% Owner-occupied
30% Investment
​
Flexible amortization
options may be available
Often 5–30 years
​
Requirements:
3 years personal and business tax returns
Current-year YTD P&L and balance sheet
Accounts Receivable (A/R) Report: (if applicable)
Business debt schedule
Most recent 3 months bank statements and loan statements
​
No Bankruptcies Allowed
​​
Closing costs/fees
may include appraisal, environmental, title,
and attorney fees commitment/prepayment fees may apply.
​
Business checking account / auto-pay setup may be required.​
​
All commercial loan programs are subject to lender guidelines, underwriting, and approval. The information shown is for general educational purposes only and is not a commitment to lend or a guarantee of terms. Requirements (including credit score, down payment, occupancy, loan amount minimums, and eligibility) may vary by borrower, property, and loan purpose and may change without notice. Closing costs and third-party fees (such as appraisal, environmental reports, title, and legal fees) may apply; additional lender fees and prepayment/early payoff terms may also apply. LJ Mortgage Team Inc. is a mortgage broker and arranges financing with third-party providers; we do not make loan commitments or fund loans.
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