Obsidian Financial Reviews

Types of Loans

Conforming Loans

Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stock-owned corporations purchase mortgage loans complying with their guidelines from mortgage lending institutions, package the mortgages into securities, and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing, which results in the availability of mortgage credit for Americans.

Conforming loans generally allow for financing of up to a $417,000 loan amount. Most conforming loans are thought to require a 20% down payment, but actually, conforming guidelines allow for financing of up to 95% of your home value. Generally, conforming loans carry risk-based pricing, which allows those who have better qualifying criteria (like credit score and loan-to-value ratio) to qualify for better home mortgage rates. Conforming loans above 80% loan-to-value ratio require private mortgage insurance (PMI). We offer options to eliminate borrower-paid PMI.

There are many conforming loan products. The most typical is a 10, 15, 20, 25, or 30-year fixed term. Conforming loans also have a variety of ARM loans, ranging from a fixed initial, fixed period of either 3, 5, 7, or 10 years. These ARM loans may substantially lower your payment, and they carry initial fixed periods that can give you a better rate over a shorter period of time.

Making Home Affordable Program

If you currently have a Freddie Mac or Fannie Mae conforming loan, you may be eligible for refinancing home mortgage loans through the Making Home Affordable Program. This program provides access to low-cost refinancing for responsible homeowners who are impacted by falling home prices. The goal is to improve homeowners’ financial positions by reducing their interest rate and payment, or by transitioning from a risky loan to a more stable loan. The program allows for rate and term refinancing for up to 125% of your home value. In some cases, we can even eliminate the need for an appraisal.

Non-Conforming Loans

A non-conforming conventional loan also referred to as a non-prime loan, is a mortgage loan that is not underwritten according to the guidelines of Fannie Mae and Freddie Mac. Generally, a non-conforming borrower either would not qualify for a conforming loan or would benefit more from a non-conforming loan. Non-conforming loans offer a variety of products and financing terms. We can currently offer up to 90% loan-to-value for cash out or debt consolidation, without PMI.

Jumbo Loans

Jumbo Loans are a type of non-conforming loan that generally has a higher loan amount than $417,000. Jumbo loans help borrowers qualify for higher-priced homes without requiring a substantial down payment to stay within the conforming loan limit.

FHA Home Loans

The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs, primarily geared toward helping owner-occupied borrowers. FHA loans have a lower down payment requirement of 3.5% and are generally easier to obtain than conventional mortgage loans. Contrary to popular belief, anyone who has satisfactory credit and can show sufficient income to make the mortgage payments can qualify for an FHA-insured mortgage. FHA house loans are available in urban and rural areas for single family homes, condominiums, and 2-unit, 3-unit, and 4-unit properties. This type of loan is a great way to qualify for both purchase and refinancing home mortgage loans. For purchases, you can even have your down payment gifted by a family member and roll the closing costs into the loan. Another great benefit is that FHA loans are assumable to any qualifying borrower. Standard FHA loan terms are 15, 20, 25, and 30 years fixed or ARM loans with an initial fixed period of 1, 3, or 5 years.

Obsidian Financial Situation

FHA Streamline Refinance

If you currently have an FHA loan, you can apply for an FHA streamline refinance to reduce your interest rate and monthly payments on your loan. We offer FHA streamlines without requiring an appraisal and without any income verification.

FHA Refinancing Home Mortgage

Even if you do not currently have an FHA home loan, you may benefit from a refinance to an FHA-insured mortgage. We can offer up to 97.75% of your home value on a refinance of your first mortgage, or to combine your first and second mortgage. FHA financing also offers up to 85% for cash out or debt consolidation.

VA Loans

VA loans are guaranteed by the U.S. Dept. of Veterans Affairs. This government home loan allows for veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional home loan. In addition to requiring no down payment, one of the biggest benefits is that VA loans do not require PMI (private mortgage insurance). Although the U.S Department of Veterans Affairs does not make loans, it guarantees loans made by home mortgage lenders. After verifying your eligibility, VA will issue a certificate of eligibility to be used when applying for a VA home loan.

VA IRRL (Interest Rate Reduction Loan) Refinance

If you currently have a VA guaranteed mortgage home loan, you may qualify for a VA IRRL, commonly known as a VA streamline. VA streamline refinance does not require an appraisal or income verification to qualify for an interest rate reduction.

USDA Loan Programs

The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture guarantees loans for rural residents with minimal closing costs, no down payment, and no PMI. Depending on certain requirements and the area in which you are purchasing, you may qualify for this government home loan.

Home Equity Conversion Mortgage (HECM)

An FHA reverse mortgage is designed for homeowners age 62 and older. It allows the borrower to convert equity in the home into income or a line of credit. The FHA reverse mortgage loan is also known as a Home Equity Conversion Mortgage (HECM) and is paid back when the homeowner no longer occupies the property.

Construction to Permanent Financing

Our one-time close structure protects both the buyer and the home builder. With our structure, we close once, upfront, before any construction starts on the property. The funds are guaranteed at closing and are paid out according to an agreed upon draw schedule.

With a onetime close, the borrower will not be subject to new credit checks, income and employment verifications, or new appraisals at any time during the construction process. The land is paid at close and home and improvement costs are stage funded during the construction process according to an agreed upon draw schedule.

During the process of construction, interest accrues only on the funds that have been stage funded out. The borrower typically makes no out of pocket payments on the loan until the home is complete and ready to occupy.