The Federal Housing Administration (FHA) does not make loans, it Insures loans. In the event of foreclosure, the lender is protected by mortgage insurance issued by the government through the FHA. The insurance covers the full value of the loan.

Recently, the primary function of the FHA Mortgage insurance program was to make it possible for low-income families, first-time buyers and other borrowers who could not qualify for conventional loans to obtain a mortgage.

Conventional mortgages are institutional mortgages that are not insured by the FHA (Federal Housing Administration), or guaranteed by the VA (Veterans Administration), or the U.S. Department of Agriculture.

A conventional mortgage conforms to current loan limits, down payment and borrower income requirements, and debt-to income ratios. The FHA created higher loan limits for areas of the country designated as “high-cost areas” – including all country regions, except the Midwest.

The Department of Veterans Affairs (VA) guarantees home loans. Veterans who qualify for a VA mortgage loan must obtain a Certificate of Eligibility (COE). Determinations of eligibility are based on the length of service and are issued to veterans who were not discharged dishonorably.

At Valley West Mortgage we specialize in offering VA Mortgage Loans and take great pride in giving back to those who have served. In providing hundreds of VA Mortgage loans has allowed us to streamline the VA Mortgage loan process, making it very smooth and easy for our clients.

A USDA Guaranteed Loan is a 100% Government insured purchase loan. These loans are only offered in rural areas and serviced by direct lenders that meet federal guidelines.

USDA Rural Development field offices can provide information on the moderate income limits for the areas that fall within their jurisdiction, and can provide further guidance on calculating household income.

A reverse mortgage is a loan available to homeowners over 62 years of age that enables them to convert part of the equity in their home into cash.

The loan is called a reverse mortgage because the traditional mortgage payback stream is reversed. Instead of making monthly payments to a lender (as with a traditional mortgage), the lender makes payments to the borrower.

A non-qualified mortgage (non-QM) is a home loan designed to help homebuyers who can't meet the strict criteria of a qualifying mortgage. Non-QM loans fit a broad range of potential consumers and can be used to purchase primary, secondary, and investment properties.

Many people today have incomes that fluctuate, such as self-employed business owners, hospitality workers, and retirees. This is where non-QM fills the gap, by providing flexible underwriting guidelines for responsible consumers with unique income circumstances.