Agents Home / Loan Programs

Loan Programs

Prospect Mortgage has the loan programs to make homeownership achievable for a wide range of buyers. From first-time buyers to investors, move-up buyers and empty-nesters, we provide the financing that turns ownership from a dream to a reality!

Conventional Loans

There are many different options with conventional loans to fit many different needs from first-time buyers to investors. Here are a few highlights:

  • Primary residence purchases with 3% buyer contribution
  • Property flips allowed
  • Up to 10 financed properties allowed1

1Minimum FICO score requirements. Other restrictions may apply.

Federal Housing Administration (FHA) Loans

FHA Loans for primary residences are versatile, affordable, and available to more people than ever before.

  • 3.5%2 down payment
  • Flexible credit requirements
  • Fixed or adjustable rate
  • Sellers can help pay closing costs up to 6% of the sales price
  • No prepayment penalty

2Maximum LTV is 96.5% on FHA purchase loans

Veterans Administration (VA) Loans

Prospect Mortgage specializes in government loans including FHA, USDA and VA loans. We are committed to giving back to the communities we serve, including Veterans who have served in the U.S. Military. As part of our commitment to our Veterans who have served, we make a donation to Homes for Our Troops for every VA loan that Prospect Mortgage closes. Donate here.

  • VA loans are available to Veterans, reservists, active-duty personnel and surviving spouses of Veterans, based on military entitlement
  • Borrowers may finance up to $2 million for a home purchase*
  • No down payment**
  • No cash reserves*
  • No application fee
  • No monthly Private Mortgage Insurance (PMI) premium
  • VA funding fee may be financed
  • 1-4 unit primary residences may qualify with certain restrictions
  • VA assistance to Veterans in default
  • May pay off some consumer debt with the refinance loan program***

*Cash reserves required on loan amounts greater than $1 million. Other restrictions may apply.
**Up to 100% financing available up to county loan limits on primary residences
***Please consult your financial advisor about the consolidation of short-term debt into long-term debt.

Renovation Loans

Prospect Mortgage is a leader in the renovation market. We are the largest FHA 203(k) renovation lender in the country4, and provide financing for other renovation products as well.

4As of April 2016, according to HUD data.

203(k) Renovation Loan

The 203(k) Renovation Loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the projected market value of the property when all repairs are completed or sales price plus renovation costs, whichever is lower.

  • 1-4 unit properties
  • Up to 6 months to complete renovations
  • Repairs from major to minor can be included (eligible improvements)

Fannie Mae HomeStyle® Renovation Loan

The Fannie Mae HomeStyle Renovation Loan lets borrowers combine the cost of the home with the costs for renovation or remodeling. The loan can be used to purchase and renovate most residential properties.5

Program highlights:

  • Purchase or refinance an existing home with 5% minimum down for primary, single-family residences (Multi-unit owner occupied residences, second homes and investment properties require a higher down payment)
  • Gift funds can be used for down payment and closing costs for owner occupied, primary residence
  • High-balance loan option available with Loan-to-Values (LTVs) equal or less than 90%
  • Repairs from major to minor can be included (talk to your Loan Officer for a list of eligible improvements)

51-4 unit owner-occupied residences, 1-unit second homes and 1-unit investment properties. HomeStyle® is a registered trademark of Fannie Mae.

203(h) Disaster Program*

Homeowners or renters who are living in a federally declared disaster area may be able to purchase a new home with no money down. If your clients’ residences have been destroyed or severely damaged, they may qualify to purchase a new home with up to 100% financing.

Have your clients contact Prospect to get pre-qualified. This is an important step in the recovery process and getting them back into a place they can call home.

Program highlights include:

  • 100% financing, no money down on a home purchase
  • Single-family homes and FHA-approved condos (2-4 units, vacation and investment properties ineligible)
  • Applications must be made within one year of the disaster
  • Loans will be made through the FHA 203(h) program
  • Prospect is the largest FHA 203(k) lender in the nation6

*Borrower’s previous residence must have been in a FEMA-declared disaster area and must have been destroyed or damaged to such an extent that reconstruction or replacement is necessary.

6As of April 2016, according to HUD data.

Energy Efficient Mortgage

Want to save your clients some money on utility bills and invite them to do their part for the environment? FHA’s Energy Efficient Mortgage program lets your clients finance the cost of adding energy efficiency features to new or existing housing as part of an FHA purchase loan or mortgage refinance.

Program details:

  • Primary residences of 1-4 units are eligible for financing.
  • A 3.5% down payment is required.
  • The cost of an energy inspection report and related fees, including closing costs, may be included in the mortgage.
  • Loan limits are based on FHA loan maximums for your community.
  • Clients can consider new energy efficient windows and appliances, heating and air conditioning or weatherization upgrades.
  • Clients can get home improvements with no out-of-pocket expenses.
  • Clients can possibly see monthly savings on energy costs due to improvements.

New Opportunity LoanTM

Prospect’s New Opportunity FHA Loan is aimed at homebuyers with FICO scores between 580 and 639. It gives potential buyers more opportunities to qualify for a home loan.

Program highlights include:

  • 3.5% down payment
  • Fixed-rate loan and 5/1 ARMs7
  • Gift funds permitted
  • Applies to purchase and refinance
  • Homebuyer counseling required

75/1 ARM only available for purchase money mortgage loans

 

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