Which Mortgage is Your Best Match?
There are many different loan programs available, and each one is specifically designed for various types of borrowers. When you work with American Bay Funding, we consider your specific homebuying or refinancing scenario to find the financing that best fits your needs.
Below is a sample of the loan products we offer. However, there is no substitute for a quick conversation with one of our expert lenders, who can assess your situation and match you with the mortgage that makes the most sense.
Loan Programs
Conventional Loans
Fixed or adjustable rates
Down payment as low as 3% for primary home
Primary, second, and investment property options
FHA Loans
3.5% minimum down payment required for home purchase
Minimum credit score is 500
Higher allowable debt to income ratio than other loan types.
VA Loans
Competitive interest rates that are routinely lower than conventional loans
Down payment as low as 0%
Higher allowable debt-to-income ratio than other loan types
Sellers can pay up to 6% of closing costs and other concessions other loan types
Jumbo Loans
Loan amounts up to $5,000,000
Fixed or adjustable rates
Primary, second, and investment property options
Down Payment Assistance Programs
Available to qualified first-time homebuyers
May obtain to 3.5% from local programs towards down payment and closing costs
For primary, single-family residences only
Bank Statement Loans
LTVs up to 90%
FICOs down to 580
DTI up to 50%
Loan amounts from $150,000 to $3,000,000
Interest-only available
Cash-out options
12-month and 24-month alternative documentation for self-employed borrowers
Stated Income Debt Service Loans
Also known as DSCR Loans
Qualification based on the gross rents or rental surveys
Interest only and fully amortized terms available
Can vest in the name of the Corporation and LLC
Reverse Mortgages
For eligible homeowners aged 62 and older
Allows homeowners to use the equity in their home and convert it into payments received, instead of the borrower making payments to the lender
The money received is usually is tax-free and doesn’t have to be paid back for as long as the owner lives in the home
Non-Warrantable Condo/Porfolio Loans
Loans to buy a non-warrantable condo, which are harder to obtain financing for as they are not backed by Fannie Mae and Freddie Mac
Lenders do not sell this loan to third parties and instead, hold on their books
Since lenders take on all the risk, they have more stringent underwriting criteria and may carry higher interest rates than conventional loans
Our Loan Process
We Have A Chat
We’ll meet and have a discussion. A loan officer will consult with you on your credit, manage expectations, and go over in detail what your available financing options are based on your situation and needs. We’ll then help you pick your perfect match loan, including the loan program and interest rate that is ideal for your family.
Apply For Loan
We move full speed ahead with your application, which includes gathering as much information as possible upfront. We’ll then inform you if additional documents are needed, including tax returns, pay stubs, bank statements, and employment history.
Appraisal & Underwriting Submission
After we receive the requested documents, we’ll promptly order an appraisal, title insurance, tax transcripts, verify your employment, and gather other documents needed for closing. One of our loan processors reviews the paperwork to “pre-underwrite” your loan, then it’s submitted for underwriting. Our underwriters rapidly, but thoroughly, access your loan to have it released within hours.
Conditional Approval & Loan Commitment
This is the step when you can breathe a sigh of relief. Your loan has been approved, but it comes with conditions that must be met before it can close. You’ll receive your loan commitment subject to these conditions, which your loan officer will work with you to address and resolve.
Outstanding Documents Submitted For Closing
We’ll gather your additional documents noted in the conditional approval, as well as the third-party paperwork we ordered on your behalf. We then submit it all to the underwriter for “clear to close” on your loan.
Underwriting Sign off
The underwriter reviews your loan, affirms that all conditions have been met, and signs off on approval. Now your loan is officially ready to close!
Closing
Congratulations! You’re about to become a homeowner. We’ll schedule your closing, work with escrow and title to assemble the final paperwork, and confirm the total funds needed at escrow. The last step is receiving the keys to your new home!
