Loan Programs

The following is a partial list of programs offered by Capital Mortgage Services with a brief description of the key elements of each. 

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Select the loan to view more information

Conventional Loans

What are Conventional Loans?

Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.

Most Common Types of Conventional Loans

Fixed Rate Mortgages: Your rate and payment never change.​

  • 30 Year Fixed Loan
         Benefits: Lowest fixed monthly payments

  • 20 Year Fixed Loan
         Benefits: Low fixed monthly payments

  • 15 Year Fixed Loan
         Benefits: Lower rate than the 15 or 20 Year Fixed; Pay less interest and pay your home off more quickly.

  • 10 Year Fixed Loan
         Benefits: Lower rate; Pay off your loan and build equity faster.

  • 5 Year Fixed Loan
         Benefits: Lowest rate; Pay off your loan and build equity the fastest

Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.

  • 3/1 ARM
    Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years

  • 5/1 ARM
    Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years

  • 7/1 ARM
    Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years

What are the Conventional Down Payment Requirements?

For Purchase transactions Conventional Loans require the home-buyer to put down at least 5% - 20% of the purchase price of the home. For a Refinance transaction, most lenders require at least 10% equity in the property. If you don't have enough equity to qualify for a conventional refinance - even if you owe more than your home is worth - you might be eligible for a HARP 2.0 Loan.

 

What types of property are eligible?

Most conventional loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can also be used to finance a primary residence, second home and investment property.

 

FHA Loans

FHA is the acronym for the Federal Housing Administration. FHA loans are provided by FHA-approved lenders. FHA loans are federally assisted.

 

The Federal Housing Administration requires a mortgage insurance premium (MIP), which is equal to a percentage of the loan amount. MIP is normally financed by the lender and paid to FHA upon closing of the load process. FHA does not make loans, it insures loans made by private lenders. 

 

FHA loans allow buyers to put down as little as 3.5% and receive up to 6% toward closing costs. Creditworthiness isn’t as heavily scrutinized as a borrower can enter an FHA loan agreement with a minimum FICO score of 620 and still qualify for the best rates. FICO scores below 620 can still qualify but interest rates will be higher.

 

VA Loan

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs (VA) that is available to most US service members. It offers some very great benefits to those that have served our country.

Benefits of VA Loans

  • You can buy a home with no money down.

  • You can refinance your home up to 100% of the value of your home.

  • You never have to pay PMI (Private Mortgage Insurance).

  • Sellers can pay your closing costs.

  • They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.

  • If you already have a VA Loan you might be eligible for a VA Streamline Refinance.

  • Disabled Veterans may qualify for a waiver of the Funding Fee if they receive any disability payments from the VA or if they are considered to be at least 10% disabled.

Who is eligible for a VA Loan?

As a rule of thumb, almost all active duty or honorably discharged service members are eligible for a VA loan.

You may be eligible for a VA loan if any one of these statements describes you:

  • I served 181 days during peacetime. (Active Duty)

  • I served 90 days during wartime. (Active Duty)

  • I served 6 years in the Reserves or National Guard.

  • I am the spouse of service member who was killed in the line of duty.

  • I currently receive disability payments from the VA.

What is the VA Funding Fee and is it required?

Yes, it is required. It is a fee paid directly to the Department of Veteran's Affairs so that they can guarantee your loan and provide you with the opportunity to receive a loan with little to no money out of pocket.

How much is the VA Funding Fee?

It depends on several factors including: Whether you are Active Duty, Retired, Guard or Reserve and whether you this is a first time use, subsequent use, or a cash-out refinance as well as how much of a down payment you are putting down. The fee can range from as little as 1.25% up to 3.3% of the loan. Generally, the more money you put down the lower the VA funding fee. Please contact us and we will help you to determine how what the exact cost of the VA Funding Fee would be for your particular situation.

Do I have to pay the VA Funding Fee out of pocket?

No, you can include the VA Funding Fee in your loan and pay the funding fee over the course of your loan.

Do I still have to pay other normal closing costs like Appraisal, Title and Escrows?

Yes, however with a VA loan if you are purchasing a new home the seller can pay for all or part of your closing costs.

 

What is a VA Streamline Refinance?

A VA Streamline Refinance is a refinance option that is available if you already have a VA mortgage and you want to lower your interest rate with little or no out-of-pocket closing costs. You don't have provide bank statements, W2s, job verification or paychecks.

 

Reverse Mortgage Loans

Reverse Mortgages or (Home Equity Conversion Mortgages HECMs) are a special home equity loan for homeowners of 62 years of age or older. These loans allow borrowers to borrow against the equity that they have built up over years of paying down the mortgage on their home to supplement their retirement income. The loan itself will have fees and closing cost involved as there is with any mortgage transaction. Also there is interest added to the loan balance each month, the loan balance grows over time, and funds may be disbursed via a lump sum single disbursement, in monthly payments, or as a line of credit. Borrowers generally do not have to pay back the loan while themselves or an eligible spouse live in the home; however, borrower must continue to pay taxes, insurance, utilities and to maintain the home in order to continue to occupy the home. "Non-borrowing" spouses may be eligible to continue living in the home after the borrower passes away; however, the non-borrowing spouse will stop receiving the money from the reverse mortgage after the borrower spouse passes away. The loan becomes due in full at the time the last borrower, co-borrower, or eligible spouse either passes away, sells the home, or moves out. Borrower's estate or heirs may pay off the reverse mortgage through the sale of the home or retain the home via a refinance (neither the borrower nor their heirs will have to pay back more than the home is worth). Reverse mortgage is not a risk free loan and should be considered carefully; for more information on reverse mortgage click here to visit the Consumer Financial Protection Bureau website.

Broker Disclosure
All programs subject to change without notice. All services rendered by Capital Mortgage Services (NMLS# 245744) are to assist in providing mortgage loans. Capital Mortgage Services brokers out this loan. Subject to borrower qualification. The information on this section is intended for informational purposes and is not an offer to extend credit.

 

Asset Qualifier

Who Qualifies?

• No employment info or income needed

• No debt-to-income ratios

• Credit Score 700+ 

• Primary Residence 

• Loan amount up to $3 million

• Maximum loan to value ratio: 75%

• 5-year seasoning for: foreclosure, shore sale or bankruptcy

Required Assets:

• Must have at least $500,000 in post-closing assets

• Loan amount

• Recurring monthly debt multiplied by 60 months

• Funds to close & 6 months reserves

 

Non- Prime Program

• Credit scores as low as 500

• Up to 90% loan-to-value ratio – no mortgage insurance

• 1 day out: foreclosure, shore sale, deed-in-lieu or bankruptcy

• No active trade lines required; rent free – allowed; gift funds – allowed

• Loans up to $1 million

• Non-warrantable condos – allowed

• Allowed properties: owner-occupied, second homes & investment

• Mortgage lates– okay

• Cash out – okay for reserves

• Debt-to-income ratio up to 50% considered

 

FHA203(K)

Enables borrowers to PURCHASE or REFINANCE their home while including rehabilitation costs in the same transaction. 

Standard 203(K)

• Total renovation cost can exceed $35,000 ($5,000 minimum in HUD repairs with no limit)

• Improvements to outdated homes, kitchens, bathrooms & structural deficiencies 

• Additions & expansions

Limited 203(K)

• All-in-one loan used for minor non-structural repairs

• Allows for improvements or upgrades up to $35,000 in repair escrow

• No minimum requirement for repair costs

 

Fannie Mae HomeStyle Renovation

• Finance home with renovation costs

• Escrow renovation funds in an interest-earning account

• Use this to finance soft costs (architectural services, engineering, permit fees, etc.)

 

Bank Statement Program

• Up to 90% loan-to-value ratio – no mortgage insurance (660 Credit) 

• Credit scores down to 600 - 80% Loan-to-Value Ratio

• 12 months personal bank statements

• 24 months business bank statements - Must own 50% of business for 2 years

• Loans up to $3 million

• Debt-to-income ratio up to 50% considered

• Allowed properties: owner-occupied, second homes & investment

• 2-year seasoning for: foreclosure, short sale, bankruptcy or deed-in-lieu

• Interest-only available

• 2 year self-employment required

• No tax returns required 

 

Investor Cash Flow Program

• Up to 80% loan-to-value ratio

• Credit scores starting at 640

• Qualification based on property cash flow

• No personal income used to qualify

• Properties can be in the LLC’s name

• 1-4 units & townhomes

• Loans up to $1.5 million

• No limit on total number of properties

• Interest-Only available on 30 & 40 year terms

• Non-warrantable Condos - Okay 

 

Home Equity Loan

• Minimum loan amount - $25,000

• Maximum loan amount - $500,000

• Total max financing is limited to $2,000,000 (total amount of 1st & 2nd combined)

• NO mortgage lates in past 24 months

• Max debt-to-income ratio: 50%

• Eligible property types: single family (modular & PUDs), condominiums 

• Owner occupied & second homes only 

• 7-year seasoning for foreclosure

• 4-year seasoning for: charge-off on a mortgage account, deed-in lieu, pre-foreclosure sale or short sale, chapter 7 or 11 bankruptcy discharge or dismissal, chapter 13 bankruptcy dismissal 

• 2-year seasoning for chapter 13 bankruptcy discharge

Home Equity Loan – Credit Requirements

Stand Alone

• 100% - minimum 700 credit score*

• 90% - minimum 660-699 credit score*

• 70% - minimum 640-659 credit score*

*Experian Credit Score ONLY

Refinance Combo

• 95% - minimum 700 credit score*

• 85% - minimum 660-669 credit score*

• 65% - minimum 640-659 credit score*

 

All in One 

• Flexible, easy to use and will change the way you think about mortgages and your money. 

• Lower loan’s principal balance faster & in doing so, save tens of thousands of dollars in valuable interest. 

• Provides flexible access to your home's equity dollars for thirty years without forcing you to refinance. 

• Home loan that works like a fully secured checking account and allows borrowers the freedom to use their income to reduce their exposure to harmful mortgage interest.

• All deposits are applied directly to loan principal which lowers the outstanding daily balance in which interest is computed.

• Access to deposited funds is provided 24/7 through ATM debit cards, check writing, online bill-pay and ACH transferring.

• Home financing and personal banking combined into one fluid financial tool

• Requires good credit and is most suitable for cash-flow positive households.