Conventional loans usually offer the best rates and offer low down payment programs (3% down payment). All banks, mortgage lenders and brokers use these loans because they are the safest and most readily available. Guidelines for Fannie Mae and Freddie Mac are set by the government and intended to make lending easier for lenders to lend. If these guidelines are met, regardless of race, age and/or location, the lender must lend. Lenders will most likely sell these loans in the secondary market and be able to replenish the funds used to lend again.
Though conventional loans are the best option for rates, there is little to no flexibility with the guidelines. You either meet the guidelines or you don’t. At Metro Fund, we have some niche Fannie Mae and Freddie Mac products from our extensive list of investors. In some cases, we can use W2 income in lieu of tax returns as well as only use one year of corporate returns versus two years to qualify. Our experience in finding the right programs to meet conventional guidelines is what sets us apart.