We started Home Fast Funding on one simple idea, to provide borrowers the ability to shop for a mortgage loan from multiple lenders all in one place. This meant providing real time transparent rate quotes, low rates, no lender fees and one point of contact from beginning to end.
There is one common factor before we cover the differences. A conventional loan, FHA, USDA or VA loan from a bank, direct lender or broker is the same FNMA, FHLMC, and GNMA loan. The difference being the pricing and the service from who you borrow from. A mortgage broker works with wholesale lending partners to fulfill your loan. Often, mortgage brokers have many options and are able to compare the pricing of many lending institutions. Mortgage brokers are compensated by a wholesale lender where your loan is placed. Mortgage brokers set the compensation quarterly and can not deviate from this compensation. Servicing is normally done by the wholesale lender who funds your loan. A direct lender underwrites and funds their own loan and sets their interest rates. The source of the money is often a line of credit that is used to fund the loan. Most direct lenders sell your loan as soon as it funds as they need to clear the line in order to make more loans. Underwriting tends to be more restrictive to reduce the risk of a loan buyback. Often they do not have a servicing platform. A bank usually use it's own money and has the ability to borrower money from the Federal Reserve or other banks. Banks offer a very limited product line as they must manage their regulatory risk and follow very stringent underwriting processes.
As a broker we do not service mortgages. Once you have decided on a rate and program we will know which one of our investors will service your loan. After the loan funds, we will always be here for you.
Since Home Fast Funding is a broker we have access to multiple wholesale lenders. We currently offer Conventional, Jumbo, FHA, USDA, VA, Construction to Permanent, Medical Professional Loans, and Reverse Mortgages. We also have Alternative income documentation loans if you do not qualify for a traditional mortgage.
Yes. We offer both VA and USDA which are zero down home loans. If you do not qualify for those programs we offer a 3% down loan program where 2% comes from the lender. Additional restrictions may apply.
Lenders typically look at three primary factors known as the three "C's". Capacity, Collateral and Credit. Capacity refers to your income and your ability to repay the loan. Collateral is the home's value and Credit is your credit score and your payment history on your credit.
The minimum credit score for conventional loans is a 620 middle credit score. FHA maximum financing requires a 580 middle credit score. VA does not require a minimum credit score however some investors do have minimum credit score overlay requirements for VA financing. Since Jumbo and Non-QM are investor portfolio products the minimum credit score requirements vary by loan product and investor. Contact us for specific scenario requirements.
Conventional loans is a traditional mortgage. Conforming loan refers to the loan limit in your county. For example, the conforming loan limit is for normal areas $453,100 and $679,650 high-cost areas. Government loans are your FHA (insured by United States Department of Housing and Urban Development (HUD) and VA (insured by Veterans Affairs). All FHA loans have Upfront Mortgage Insurance (1.75% of the loan amount) and monthly mortgage insurance (on average it's about .85% of the loan amount divided by 12) for the life of the loan.
An Automated Underwriting System loan is a loan that passes through an AUS system like Fannie Mae Desktop Originator, Fannie Mae Desktop Underwriter or Loan Product Advisor formerly Loan Prospector. The AUS system gives an underwriting decision and findings. The findings analyzes your credit and financial profile. Even government loans pass-through these systems for an automated underwriting decision. Your loan is still subject to a review by an underwriter, but the chances of your loan closing is very good as long as the information provided is accurate. Depending on your credit and financial profile, the AUS system may give a "Refer/Eligible." While this is not an AUS approval, you may still qualify for a home loan with a manual underwrite. On a manual underwrite, your loan approval will be reviewed and approved by an underwriter.
Interest rates vary from broker to broker, direct lender to direct lender and bank to bank. The market (price of MBS bonds) sets the interest rate baseline. Companies then adjust the rates to make a profit. Each company will mark up the interest based on the overhead and profit desired. Our margins are set the same for every lender we have a relationship with making true comparisons amongst lenders possible.
Some clients lock the same day we review their loan application. You may lock your loan anytime after you have completed your loan application, reviewed your credit and financial documents. There is no fee assessed to lock. We do not need an appraisal to lock.
Our entire business model is predicated on speed and efficiency. Our technology allows you to apply online, upload documents and electronically sign disclosures. Our typical transaction can be closed within 3 weeks of a borrower applying and uploading the required documentation. We will keep you updated throughout the entire process.
When you first apply for a loan and upload your documentation it will be sent directly to an underwriter for an initial review. The underwriter will determine your debt to income ratio, review your asset and income and if there is anything additional needed they will issue an approval contingent on returning the requested documentation. A final approval is when all the conditions have been satisfied. Once the file reaches this stage the file can then move to closing.
An escrow account is required on Conventional loans over 80% Loan to Value. An account is also required on FHA and VA loans. For most loans, a fee is not charged to waive escrows. If you decide not to have an escrow account you are responsible for the payment your taxes and your insurance when it is due.