LoanWorks is your trusted partner in navigating the world of homeownership financing.
We understand that your home is not just a place, but a canvas upon which you create memories, dreams, and build your future. As an innovative leader in the financial industry, LoanWorks is proud to introduce our meticulously crafted collection of loan products, all powered by cutting-edge artificial intelligence.
Agency/Conventional Conforming
A conforming loan is a mortgage with terms and conditions that meet the criteria of Fannie Mae and Freddie Mac.
Conforming loans cannot exceed a certain dollar limit, which changes annually. In 2023, the limit is $726,200 for most of the U.S., but is higher, up to $1,089,300 in some more expensive areas. Conforming loans typically offer lower interest rates than other types of mortgages.
Lenders can package and sell conforming loans in the secondary mortgage market.
Jumbo/Conventional Non-Conforming
A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA) and cannot be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac.
Homeowners must undergo more rigorous credit requirements than those applying for a conventional loan. Approval requires a stellar credit score and low debt-to-income (DTI) ratio. A jumbo mortgage's average annual percentage rate (APR) is often par with conventional mortgages, while down payments are roughly 10% to 15% of the total purchase price.
Government/FHA, VA, USDA
The U.S. government offers loan programs through different departments to support the needs of individuals, businesses, and communities. These loans provide capital for those who may not qualify for a loan from a private lender.
The government doesn't always lend money directly. Low-cost government loans attempt to bridge this capital gap and enable long-term benefits for the recipients and the nation. In some cases, it guarantees loans made by banks and finance companies. The most common government loans are student loans, housing loans, and business loans.
Reverse
The Federal Housing Administration (FHA) insures the most common type of reverse mortgage, known as a home equity conversion mortgage (HECM), and is offered only through FHA-approved lenders.
Borrowers who meet the requirements can receive a portion of their home equity in the form of a lump sum, monthly payments, or a line of credit. Other types of reverse mortgages include proprietary reverse mortgages and single-purpose reverse mortgages.
Renovation
A renovation loan can fund home repairs or improvements. However, home-related costs can also be covered by other types of loans.
Different types of renovation loans are available, including home equity loans, home equity lines of credit (HELOCs), and cash-out refinance. LoanWorks can compare different rates and terms to determine which type of loan might work best for your budget and needs.
