Our Loan Products
At Vesta Capital, we want to connect you with the loan that’s right for you. We also believe you should have access to loans despite your tax status or verifiable income, which is why we have an alternative documentation loan program. This program is available for those who are applying for both residential loans and commercial loans.
We offer loans to those who are looking to purchase property and we also offer cash out refinance loans to those who already own a home. Whether you need a first-time home buyer loan for a starter condo or you need a jumbo mortgage loan for your dream forever home, we’ve got you covered. Learn more about some of our loan products below.
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac typically require down payments of at least 3%. Borrowers who put at least 20% down do not have to pay mortgage insurance premiums, which are typically required with FHA loans. The ability to qualify for a conventional mortgage or home loan requires a minimum credit score of 620. For those with good credit scores from 700 plus will qualify for a better rate. We do offer a lender paid PMI where the PMI is paid upfront and added to the rate. The debt-to-income (DTI) that lenders usually require is from 45-50% depending on LTV and credit score. Ask your mortgage broker to review your specific home loan situation.
VA offers 100% financing to Veterans, Service Members and select military spouses on purchases transaction and rate and term refinances with no PMI. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). VA offers cash out refinances up to 90% LTV, and streamline refinances are available under VA IRRRL program to 100% financing. VA rates are generally lower with a VA home loan than a conventional mortgage. As a Top VA broker, we at Vesta Capital Inc understand the unique needs of service members and their families, and can help you take advantage of every benefit you’ve earned. We’re here to help you through the home-buying or refinance experience by providing low VA home loan rates.
Jumbo loans start at $726,200, usually requires higher credit score, lower debt to income with loan to value to 90%. Also called non-conforming conventional mortgages, jumbo loans are considered riskier for lenders because these loans can’t be guaranteed by Fannie Mae and Freddie Mac, meaning the lender is not protected from losses if a borrower defaults. Jumbo loans are typically available with either a fixed interest rate or an adjustable rate, and they come with a variety of terms. Our rates are very competitive and in some cases pricing is better than conventional loans. Even if over 80% LTV, jumbo loans do not require any PMI. Lenders may require your FICO score to be higher than 700, and sometimes as high as 720, to qualify for a jumbo loan. Lenders will require borrowers to show they have enough cash reserves to cover 6 months to 1 year of mortgage payments. The max DTI ratios requirements is lower than a conventional loan with a max DTI between 43% to 45%.
An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time homebuyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. These are very appealing to those who are purchasing their first home and who do not have 20% to put down at this time.
FHA loan requirements vary depending on the loan type, usually the credit stipulations are more lenient while the loan requirements are stricter:
* Great for first time home buyers
* Lower credit scores allowed
* Down payments as low as 3.5%
* Higher debt-to-income ratios allowed
* Typically lower interest rates than other loan types
* FHA loans allow sellers to contribute up to 6% to cover closing costs
Also known as alternative documentation loans. Most Alt-A loans aren’t typically full doc meaning you can use bank statements instead of tax returns and in some cases income can be stated not verified, and some kind of asset-based loan are available and interest only programs available under our Alt-A loans. We have Innovative Non-QM programs to help you purchase or refinance any property you want.
-Bank Statement- 12 months of personal or business bank statements used for income. We normally use 50% of total deposits for income and the max debt to income ratio is 50%. We can go to 90% on a purchase, rate and term refinance and 80% on a cash out loan.
-Asset Depreciation- Asset used for income. Normally at least 1x the loan amount is required to qualify.
-DSCR- (Debt Service Coverage Ratio)- for investment properties only. We use the total rents of the property to qualify. You use to total rents minus 25% for expenses. We can go as low as .75% of the net rents used to qualify and can up to 85% loan to value, 1-4 family units, condos qualify with loans up to 4 million.
-1099 Only- If you receive a 1099 for income, we can use only your 1099 for income to qualify excluding any taxes showing any write offs.
-State income- this is for primary and or investment properties. This is for borrowers whose bank statements do not show deposits and or the property doesn’t debt service. 12 months assets is required for this program and can go up to 80% LTV in most cases.
Cash out Refinance
Make your home equity work for you. If you have more than 20% equity in your home, you may be eligible for a cash out refinance. A cash out refinance involves borrowing money against the value of your home by obtaining a new, refinanced mortgage loan. You can use cash out for a variety of purposes including debt consolidation, education expenses, home improvements, investments and more.
Benefits of Cashing out:
* Free up cash that you can use in a variety of ways.
* Maintain one loan rather than multiple loans. You can consolidate credit cards, personal loans, student loans, home equity line of credits (HELOCs), etc.
* Mortgages typically have lower interest rates than other loan types, especially credit cards. Additionally, credit cards and HELOCs do not always require paying principal payments so you could predominantly be paying interest
only and never paying down your debt.
* If your refinanced interest rate is lower than your original mortgage rate, you could save money on interest.
Potentially raise your credit score – If you use your cash out to pay off large credit card debt, that may lower your credit utilization ratio, which is a factor in determining your credit score.
If you would like to learn more about our lending programs, our friendly staff is available from 8 am to 6 pm on weekdays and from 8 am to 12 pm on Saturdays. Reach us by calling (310) 971-7444 or call us toll-free at (800) 814-9509.