Loan Category Definitions©

Loan Category Definitions©

Real Estate Mortgage Loans

New!!! - Freedom 70

The Freedom 70 is a new loan that has never existed until now! Its simply a stated income (no income or employment verification), no minimum credit is used in underwriting of the loan (you can have very bad credit or very good credit - treated the same) The maximum LTV (Loan to Value) is 70% for this loan - by way of the appraisal for 1-4 family properties. We don't care if you put on a 2nd, owner carry, gift, mattress money or sell the family car for a CLTV (combined Loan to Value) of a 100% or more for purchases. We don't care if you had a bankruptcy or foreclosure (in the redemption period), we don't care if you are purchasing or a refinance and with cash out, owner occupied or investment properties! But remember the maximum LTV is 70% on a 2/28 Libor ARM with 11.99% interest. There is a debt ratio of 50% that must be met. This loan is only available in Kansas City - Ks, Wichita - Ks, Topeka - Ks, Lawrence - Ks, Salina - Ks, Manhattan/Junction City - Ks and Hutchinson - Ks. Call or email us for details..........its just fantastic!!!!!! Use this to fix your problems including getting your home out of foreclosure or to pay off a bankruptcy. If you want to avoid using sub prime (see below) for any reason, this will do the job.

Fannie Mae/Freddie Mac & VA (Residential Home Mortgage 1 - 4 Family)

This is a category for the A/A+ (Fannie Mae/Freddie Mac - conforming) borrower credit must be very good. The borrowers may now borrow up to 107% of purchase price or if the borrower has VA eligibility in which case they can borrow 100% of appraised value or purchase price plus some loan costs, which ever is lower. Total debt (all required monthly payments including proposed house payment) should not exceed 45% with good to excellent credit or a minimum credit score of 620 (0-2 on our matrix). However recently there has been some flexibility on this. The ratios for a VA loan are slightly higher with the back end ratio going up to 45%. Fannie Mae interest rates are the very best rates available to the borrower. Loan approvals may be obtained from us in several hours using "Automated Underwriting" (Fannie Mae Desktop Underwriting-DU, Freddie Mac Loan Prospector-LP) on non-complex applications. A complete rate sheet is available on our MortgageNET™ Rate Sheet. Please see our Loan to Value Table for additional loan use information.

Jumbo (Residential Home Mortgage 1- 4 family)

A Jumbo home loan is any loan that's exceeds $417,000.00. Maximum Loan-To-Value (LTV) is 95% and changes as the loan amount increases. As with conforming loans (Fannie Mae/Freddie Mac Loans, see above) a Jumbo borrowers must have "A" credit and total debt ratio should be in the area of 45% (some flexibility for strong borrowers). Typical Jumbo interest rates run higher than Conforming rates, see our eMortgageNET™ Rate Sheet for very competitive rates. Jumbo loan guidelines are slightly different then those that can be calculated on the Loan Product Placement Matrix© (pre-qualification). Please contact a Loan Officer of Cornerstone Mortgage for personalized help with qualifying guidelines.

Second Mortgages (Residential Home Mortgage)

2nd Mortgages is a mortgage that is filed in a Second position behind an existing 1st Mortgage. Second Mortgages are typically used for debt consolidation, home improvement or cash out for major purchases. There are two basic programs that differentiates Second Mortgages. The first category is a Second Mortgage with a maximum LTV of 100% or less of the value of the appraisal of the home. Rates on a Second Mortgage under 100%LTV start at 6% and range to 14% depending on LTV and your credit score from your Credit Report. The second category is for a Second Mortgage that allows a Maximum LTV to 125% of the home appraisal. Rates for this program start at 10% and range up to 20%. A minimum credit score from your credit report for both programs is 640 (Fannie Mae Quality). Please contact a Loan Officer of Cornerstone Mortgage for personalized help with qualifying guidelines.

A to A- Credit Paper (subprime mortgage loan, bc mortgage 1 - 4 family)

This is a category for those who just missed Fannie Mae/Freddie Mac guidelines. The Borrowers credit must still be good but has slightly more flexibility than Fannie Mae guidelines (example is higher debt ratio). Max Loan to Value (LTV)for A/A- is 95% if the borrowers have there own money. If down payment is coming from a gift or seller carry back, maximum LTV is 85%. However A/A- borrowers are prime candidates for 100% financing. This 100% program provides a 1st and 2nd mortgage for the borrower, both are closed simultaneously. The borrower would need to cover the closing cost. Interest rates usual range from 8% to 10% for A/A- borrowers. Total debt to income ratios can run as high as 50%.

B to B- Credit Paper (subprime mortgage loan 1 - 4 family)

This category for those borrowers that have more credit problems. Typically a B borrower will have a credit score on Loan Product Placement Matrix© work sheet of 12 to 15. Maximum LTV value for a B borrower is 95% if the borrower has their own money. If the borrower is receiving a gift or seller carry back the max LTV is usually 80%. There is still a good possibility that a B borrower can qualify under the 100% financing plan. Interest Rates for a B borrower usually range from 8.5% to 11.5%.

C to C- Credit Paper (subprime mortgage loan 1 - 4 family)

This is the category for those borrowers that have significant credit problems and or excessive debt. Typically a C borrower will score a 16 to 20 on the Loan Product Placement Matrix work sheet. Maximum LTV for a C borrower is 85%., if the borrower has their own money. If the borrower is receiving a gift or seller carry back, max LTV is usually 80%. There is a very small possibility of qualifying for 100% financing. Interest rates for a C borrower range from 9.75% to 13.5%.

D to D- Credit Paper (subprime mortgage loan 1 - 4 family)

This is the category for those borrowers that have severe credit problems and or excessive debt. Borrowers will usually score 20 or greater on the Loan Product Placement Matrix work sheet. Maximum LTV is 80%. Down payment can be borrowers own money, gift, or sellers carry back. Interest rates for a D borrowers will range from 11.75% to 14.75%.

Commercial Loans

We are a lender on commercial real estate. As a nation wide lender, we will consider loans in multi family, office, shopping centers, warehouses, manufacturing, multi use and many other income real estate properties. There are too many requirement to list here for loan qualifications. Loan qualifications may very per property. However we have a online commercial loan application that helps us with knowing how to understand what your needs and requirement are going to be. Please fill it out completely as possible as it does save time. Our loans can be fixed or variable and terms with amortizations out to 40 years, with loan amounts from $100,000. to $100,000,000. If you need any help please call us.

Farm and Ranch Loans

We are lender on farms and ranch loans nation wide. Please fill out the online mortgage loan application if you live on the farm or ranch in a single family house, otherwise please fill out the online commercial loan application. The acreage is not limited nor is the basis of income (working or non working farm and ranch). Please call us if you have any questions.

The above lending information is not intended to be comprehensive or complete as to all the possible lending guidelines that may be required. Loan programs, guidelines or qualifications are subject to change at anytime. If you have any questions as to the very latest information please do not hesitate to call us on our toll fee number as show on the Cornerstone Mortgage Home Page.

Top of Page