You’re Looking To Buy A Beautiful new Home So Why Choose BuildBuyRefi Over other Lenders?
First and Foremost, We Provide the most Purchase loan Programs of any 50 state bank, working 7 days a week around Your Schedule, Not Ours!
If you visited other websites looking for this type of loan, you would notice most start out with this one question: What is a purchase mortgage loan?
Short answer, it is a mortgage to cover your new home, yet you should already know this. But what you may not have known is we offer programs that go up to or over 100%, you could even buy and renovate your new home. We go steps further than other banks by focusing on the more important aspects you want to know, like can and how you’ll get approved at a low attractive rate and term. As an FDIC Insured Bank, we lend on new purchase loans in all 50 states.
This Purchase Home Loan Guide is designed to provide the information you need to make the best possible decision on who you choose to close your loan. We take the small-town bank approach with the more significant 50 state bank risk, especially when helping home buyers get a new property.
We’re probably not the first company you found when starting your online loan search if it is, we’re lucky to have found each other first. Many lenders who advertise for purchase loans which provide “not so great options” so let’s get right to it and first take a short quiz to see if you’re in the right place.
Use These Links To Skip Ahead In The Guide:
Respond “YES” To Each Of The Top 4 Qualifiers, And You Are One-Step Closer To Getting The Best Purchase Home Loan BuildBuyRefi Has To Offer.
Respond “NO” To Any Of These Statements, And You May Still Qualify!
(1). You’re Looking To Buy A New Primary Residence, Second Home, Or Investment Property.
We provide purchase loans for these 3 home occupancy types. As long as it is a 100% residential property, meaning not mixed use, not a commercial farm, and not a commercial/retail business, you are in the right place. If you are looking to buy your very first zero down payment home, or your 3rd rental property, or your 1st vacation home, we have programs that allow you to accomplish your goals in record time!
(2). You Can’t or Don’t Want To Pay Cash for Your Home.
It’s true that paying cash for your home has it’s advantages, like beating out others bidding on the same property, eliminating your mortgage, and allowing you to maintain a debt-free lifestyle. But it is also true that most Americans can’t walk into a Real Estate office and put down 100% cash. Besides, most Americans would instead prefer to maintain a higher liquidity position, save money for emergencies, tap into still historically low interest rates, and find ways to protect their property and their cash reserves.
(3). You’re Looking For The Highest Loan To Value (LTV) And Smallest Down Payment.
Most new home buyers are looking to put down as little as possible because money is still tight, or because they know how to use their money to more significant advantages. And many are completely tired of renting or having someone dictate their terms of living, and so this is why we provide some of the best home loan programs available.
Combined with our new home purchase renovation loans, many of our clients are accessing future equity value by buying an older dated home and turning it into the home of their dreams. Imagine getting approved for 96.5% or 100% of the future value of your home before you even start the renovation without the need for getting a 2nd mortgage, that alone has become a game changer in communities around the country!
(4). Your loan request is greater than $80,000.
RARE occasions we loan down to 60k, but we have found that the higher rates below $80,000 cheat you out of getting a much more beautiful home. Sure you may have your reasons like buying a home for a friend, the property is cheap and exactly what you want, or you have a deal too good to be true. But does that loan make financial sense?
If you are seeking a loan under $80,000, you might qualify for an FHA 203k loan, USDA Repair Escrow, or VA renovation loan. These loan types allow you to upgrade your new home purchase or renovate your existing manufactured home increasing your loan amount, equity position, home value, in one low rate at the same time.
Great, if you answered “YES” to each of these, you passed the first part of our pre-approval test. If you have a “NO” somewhere, then call us now, or take our eligibility checker to discuss your situation. Answering “NO” doesn’t mean you won’t qualify, it just means we need to find out which area is impacting your request.
Before we discuss the programs we offer, and we offer almost every purchase loan imaginable which meet’s the above requirements, let’s review the most important ways to make the process as smooth as possible.
First, There Are No Guarantees Because There Are Many Unknowns.
Anyone offering you a guarantee before you dug into the details is probably someone you want to stay away avoid. It’s not guaranteed until you have met all conditions and closed your loan. Let’s discuss further how you can get the results you are seeking.
If You Want The Best, Then There’s A Need For Wicked Fast Speed, And Here’s Why!
Applying and getting pre-approved for a purchase loan is only the first step in the process, it doesn’t guarantee that you’ll get the rate, terms, or program were initially pre-approved on. Many factors go towards achieving that low rate and great program you wanted, and that is “the speed in which YOU move.” Time plays against every borrower in a big way with any loan.
Learn the 5 most-important reasons to “light the fire” and Take Fast Action on Your Purchase Home Loan Pre-Approval!
Your Dream Home Could Disappear: We’ve seen it and heard of it all too often, not moving quick enough and getting a pre-approval letter in hand when looking at homes could mean you lose the property to someone else. Sometimes people stop the process altogether when they lost the house they got excited over. For this reason, we work seven days a week, providing pre-approvals on the weekends even for those shopping and needing a pre-approval letter for their realtors.
Rate Locks Expire: Most loans are locked for 30 days because the shorter term allows you to get the lowest rate possible. If you lose your rate lock by letting it expire or needing to extend it because you took weeks getting the items back, it will cost you more money or a higher rate. With rates recently on the rise, a higher price could even make you no longer eligible for the loan you wanted. A long delay could require you to re-qualify for the loan again.
Programs Could Disappear: It’s happened before, we’ve witnessed a whole host of loan programs get wiped out overnight. Investors can choose to change their risk portfolio and stop offering programs altogether, that is why moving fast on the approval you have in your hand means taking action.
Your Job or Income Status Could Change: What if you lost your job, your income was reduced, or you wanted to take a new job, but it put your loan closing in jeopardy because you took too long? Any of these changes in your employment status could come back with more unfavorable terms, or worse, a complete loan denial.
Your Credit Score Could Dramatically Change: We’ve seen this happen so many times, a borrower maxes out their credit card for business, or they miss a payment because they weren’t paying attention, or judgment/collection was filed on your report for any host of reasons. Not closing quickly under the same credit terms is another reason for underwriters to require you to re-qualify or cancel the loan.
Follow These 3 steps to Get the lowest Purchase Mortgage rates possible.
Find a lender you feel confident in and apply to get pre-qualified from that lender and get a pre-approval letter to start shopping for your dream home. Make sure the lender has the program you want, and if they don’t sound confident they can close this program and have experienced reviews doing so, then keep looking! You may want to check out our reviews to help give you this confidence.
Request a rate lock on your loan once you are pre-approved and get your lender every item needed as fast as necessary to close your loan, so your rate lock doesn’t expire. Your side of the process is only complete when the loan is closed, not when you think you’ve sent enough to satisfy what the lenders and underwriters request.
Take responsibility and move fast, as you know rates have been on the rise as of lately. Wait too long, and you could end up with a higher interest rate, therefore qualifying for a smaller loan amount than if you locked in faster on a lower price. It’s your job to ensure you meet all requirements, not the loan officer or lenders position to hold the file open as long as possible paying for the rate lock extension out of their pocket. Locks cost money because your lender is reserving the funds and rate you wanted. It’s your responsibility to ensure you move fast as not to let that lock expire or it could end up costing you.
BuildBuyRefi Will Loan On These 4 Styles Of Manufactured homes.
(1). Single Family & Modular Homes
Any site/stick built house, or modular home constructed and shipped to the site. There are no age restrictions on these properties; however, they cannot be mixed-use, demolished, razed homes, co-op’s, investment, or on structures relocated to or from another site.
(2). Manufactured Homes
Any single-wide or multi-wide manufactured home larger than 400 sq. ft., and built after June 15, 1976. The property must not be on leased land or in a trailer park and must be on a permanent foundation.
(3). Multi-Unit Properties
Any property consisting of 2, 3, or 4 units, for example, a side-by-side or top and bottom duplex are allowed as long as one of the units are owned and occupied by the primary borrower, meaning the primary borrower occupies 1 of the units full-time.
(4). PUDS, Townhouses & Condos
Any approved PUD, townhouse or condo must be approved or accepted by HUD, FHA, VA, Fannie Mae, or Freddie Mac. Each program has their specific guidelines that expand in further detail for qualification.
*Modular homes are not considered manufactured homes, they fall under the same category as Single Family Home and do not have the same restrictions as Manufactured Homes. Every program available to a Single-Family Home extends to Modular.
What Does Conventional, FHA, USDA, & VA Loan Mean, And Which Do I choose?
These terms (Conv., FHA, USDA, VA) refer to the program type and more often it is decided based on what your goals are. These can also be determined by other factors such as location, loan amount, borrower status, and borrower’s desired transaction request. Each program has a different set of product offerings underneath it that are uniquely different. Let’s explain what these are.
These are the 4 different purchase program types available through BuildBuyRefi.
Conventional Purchase Loans
The government does not insure Conventional loans and typically require a more substantial down-payment or equity position to qualify. There are no 100% Conventional financing programs available for manufactured homes. However, we can loan up to 95% on purchase, making your minimum down-payment requirement of 5% not including seller contributions. The conventional loan product type is most often chosen when you have a more significant down-payment like 20% helping you to avoid mortgage insurance on a purchase.
Conventional home loans require a higher credit score and lower debt to income ratio than those of their FHA, USDA, and VA counterparts. If you are looking to buy a condo you must purchase in a VA approved complex. If you are looking to buy a condo, you must buy in a Fannie or Freddie approved condominium complex.
FHA Purchase Loans.
FHA stands for the Federal Housing Administration; a government agency devised to help increase homeownership to those with lower credit scores, income amounts, and higher debt ratios. Because of this the FHA loans come with Mortgage Insurance and does not automatically drop off when you get lower than 80%, you will be required to refinance out of an FHA loan if you want to drop the mortgage insurance monthly premium.
However, the FHA loan allows up to 96.5% on a purchase, meaning you can get in for as little as 3.5% down payment. In other cases like the FHA 203k loans, you could purchase a new home and rehab or renovate at the same time, in theory going over 100% of the purchase price you agreed upon to design the house how you want it. Additionally, the FHA loan can be used in combination with our BuildBuyRefi one-time close (OTC) single closing construction loan for both homes and land up to 96.5%.
The FHA has maximum loan amounts depending upon the county in which the property is located. If you are looking to buy a condo you must purchase in an FHA approved condominium complex.
USDA Rural Development Home Loans For New Purchase.
The U.S. Department of Agriculture backs these loans to increase home ownership in qualifying rural communities. To qualify, the home you buy must be in a USDA qualifying area. Mortgage insurance is also required for USDA; however, the monthly MI amount is currently lower than that of a comparable FHA loan. The USDA has maximum income limits per number of people per household but does not come with a maximum loan amount limit.
Additionally, the USDA allows up to 100% for a brand new home in all 50 states as long as you meet the required minimum credit score. Also, your debt to income ratio (DTI) must be lower than what the FHA requires; however they allow for large tracts of land, and there are USDA qualifying areas in all 50 states. The USDA is not yet funding purchase loans on pre-owned manufactured homes except for a few qualifying pilot states, so be sure to ask us first before putting a USDA contract on a used manufactured homes.
The USDA Repair Escrow renovation program for qualifying upgrades to exterior and interior is also available. This program allows up to 10% over your purchase price for qualifying repairs and updates to the property. Also, we allow borrowers who are looking to build their own home and buy their land to access the USDA one-time close construction loan up to 100%.
VA Home Loans For Active Military, Disabled or Retired Veterans, and their spouses.
Some of the best benefits available to Veterans and their spouses are still the VA home loan benefits. Of all purchase loan programs, the VA loan offers the highest loan to value, the lowest interest rates and comes with no mortgage insurance at all. This is why more Veterans should be taking advantage of this program at every chance they can get.
Sometimes Realtors will turn away this loan type, that means you’re working with the wrong realtor because they are the strongest of all government-backed home loan programs. Every program offered through the VA allows for 100% or higher in loan financing. Additionally, the VA Renovation loan we offer now provides up to $50,000.00 for renovations where other lenders are still only offering $35,000. Also, we provide the full 100% OTC construction loan. Buy your land and home in one loan, not three separate transactions.
The VA home loan comes with fewer reports required for manufactured homes if you are choosing this property type. You will even be able to purchase a home with large tracts of land and have certain exceptions granted that you will not find in conventional, FHA, or USDA types. The VA loan does not have any location restrictions or income restrictions, but it does have certain DTI and loan amount restrictions based upon what areas you are buying in. If you are looking to buy a condo you must purchase in a VA approved condominium complex.
Our Most Popular purchase Loan Products & Details.
You most likely already have an idea of what loan program you need, want, or would like to have. But for those who are just learning about these program types, we want to explain them in more detail.
#1. Conv/FHA/USDA/VA Purchase Loans
A purchase loan is used when buying a new primary residence, second home, or investment property. The types of purchase loans we offer are Conventional, and government back programs like FHA, USDA & VA manufactured home loans. These products are not used when buying a Jumbo property over county loan limits, in this specific case you want to view the Jumbo loans below.
A standard purchase loan is most common for a property that's already built; however, they can be combined with a renovation, or a construction loan program. Read more about these programs below.
#2. Rehab & Renovation Loans For Purchase
We provide partial or full rehab & renovation loan options for brand new purchase loans. Imagine the possibility of buying a home to customize exactly how you want in one low rate loan.
A rehab or renovation loan is designed to get you the updates you desire in one low rate loan and can be used on a purchase allowing over 100% of your current homes value/sales price. We provide full and limited FHA 203K Loans, USDA Repair Escrow & VA Renovation / Rehab Loans.
The second most requested loan we have at BuildBuyRefi is the Rehab and Renovation loans we offer. The most popular being the FHA 203k Limited Loans allowing up to $35,000 for partial updates and upgrades like remodeling the existing cosmetics or appliances but no structural changes, followed up with the FHA 203K Full which allows more extensive renovations such as structural changes like room additions, sq. ft. add-on, advanced structural work, or expansive updates.
The next two most popular renovation programs are the VA Renovation Loan, which we offer the highest of $50,000 for renovations compared to the majority of lenders providing only $35,000 and the USDA renovation loan offering up to 10% over sales price for qualifying repairs and updates.
For all limited renovations, you can use the money for new flooring, kitchen and bath remodeling, minor structural and safety issues, and cosmetic updating. No luxury item upgrades are allowed under either program such as swimming pools, spas, saunas, bathhouses, outdoor fireplaces, tennis or basketball courts, or anything that would improve the commercial use for the residence to name just a few. Only the FHA 203k program allows for structural changes or room additions.
#3. One-Time Close (OTC) Construction Loans
Construction loans are for those ready to undertake the exciting process of choosing the exact plot of land to build and designing the custom facets of the home they wish. It’s also used if you already own your piece of land and want to combine everything into one low rate loan. We offer up to 100% FHA, USDA, VA One Time Close Construction Loans for land & the complete build-out, or in the case of a manufactured property, the construction and permanent location to your site.
Our most popular loan program every requested is the BuildBuyRefi One-Time Close Construction Loan, also known as the Single Close Construction Loan. This product type allows borrowers that currently have a credit score less than 720 (standard construction requirements) but above a 620 credit score now build their own home exactly how they want it, where they want it.
Instead of the three loans, it takes to complete a traditional construction loan; we do it in one closing. That’s right, just one single closing! Find the land you want, or if you already have it, build the home you want and roll it into one loan. No more separate loans, separate costs, different appraisals, and most importantly, no separate qualifying for each loan in the process.
Most importantly, you can lock in your final interest rate now before rates rise, which you can not do on construction to permanent financing before you started to break ground. While the costs can be higher than traditional loans, you won’t find the multitude of 96.5% or 100% programs offered in the market today as you will with BuildBuyRefi. We have every FHA, USDA, and VA one-time close construction program provided at the highest limits possible, indeed making homeownership a custom dream.
#4. Jumbo Manufactured Purchase Loans
Jumbo loans are used in cases where the loan amount exceeds the limits set forth by the underwriting guidelines for conventional, FHA, USDA, and VA Jumbo Home Loans. The rates are typically a tad bit higher, and the loan to value is often less than any of the programs requiring a more substantial equity position for approval.
Jumbo programs are used only when a home exceeds the loan amount set by normal limits under Conventional, FHA, USDA, and VA guidelines. You may find yourself needing a Jumbo loan if your property is in a high-cost area, or has a large tract of land.
Most commonly reserved for stick built properties, we have many programs that will allow borrowers to access capital to borrow against manufactured home types as well. The most popular jumbo being the VA Jumbo Loan which has no mortgage insurance and requires the smallest down payment on your new purchase. There are no 100% jumbo home loan programs, but we get close.
#5. Manufactured Purchase Loans For Large Land / Acreage
Don’t let a property that is on large acreage pass you by, contact us if you want that manufactured home on more extensive tracts of land but your realtor is trying to steer you away. We have every FHA, USDA and VA program available to meet your needs. And while they aren’t making any more land, you want to get it while it’s convenient and we want to provide you that loan.
#6. Tiny(er) Manufactured Homes
Manufactured or Tiny Homes 400 sq. ft. or bigger. Have a larger small-home on land that you love and don’t want to move? Put your tiny home on a permanent foundation and get a low payment mortgage for it! Conventional, FHA, USDA, and VA all allow for financing of manufactured homes that meet or exceed the 400 sq. ft. requirement. These are not loans for mobile homes under 400 sq. ft. or not on a fixed permanent foundation.
Also, it is essential when the property is appraised we can find comparable property, so be sure to talk with your realtor and loan officer regarding loaning on a property that has small square footage and large acreage.
Generally, we want Your minimum “middle of the 3” credit scores To Be Higher than A 600 FICO.
My middle credit score is above 600, what rate can I get?
What rate you are quoted and receive depends on many factors since rates change daily, sometimes multiple times a day, the quote you receive today most likely will be different tomorrow. That is of course if you have not locked in your loan.
Borrowers with a 600 credit score may see a little higher rate than those with a 620, 680, 720, and so on. This is due to investors offer better rates the higher your score is. They do this because those with higher scores have proven to be of lower credit risk than those with higher scores.
Many people who buy a new home with a lower credit score that has a higher rate could raise their credit even if they took out a 100% loan six months to a year later. In cases where that happens, we are always working with our existing clients and reviewing market conditions to offer an internal streamline refinance.
Do you provide bad credit purchase loans? What is the lowest score you accept?
Can we lend lower than 600?
In some cases, yes, we’ve done them as low as 530, but it’s incredibly difficult and let’s explain why.
Typically when a borrower has a score under 600 a few things happen.
#1. The interest rate we can offer becomes too high.
The pricing adjustments that come for lower scores and loan amounts become a high risk for the lender. And due to us offering some of the best programs government-backed lending has to offer, we stay away from dancing with any loan that targets what the government deems to be high costs.
#2. The borrower has limited to no credit, or the credit trade-lines they have are not acceptable to our current underwriting guidelines.
It’s even true that some people can have a 640 credit score with limited or no trade lines that could be denied, but it is essential to show our underwriters you can make payments on time and are at low risk for defaulting on your home loan. A credit score isn’t the only thing we are looking for.
#3. The borrower could be a few steps away from a much better credit score.
It's possible that if you fall under the 600 threshold, there are some areas that credit repair could help you become more attractive to underwriters and lenders. In many instances, you don’t have to go through a 3rd party credit repair company as today’s lenders have tools to help you determine what moves you can make on your own to improve your score. Do what is needed and not only would you get a lower interest rate, you could qualify for a more substantial loan amount with better home options than if you settled for borrowing with worse credit.
The 5 Acceptable Income Types When Applying For A New Home Loan.
While we accept almost every income type when verifying and approving new purchase loans, the two we won’t loan on are stated income loans or bank-statement only loans.
W2 Full Time & Part Time Employees
Active Military Income
Retirement, Pension, 401k regular disbursement income
Social Security or Disability income
It’s important to note that any change during the process in employment status such as getting fired or switching jobs is grounds for denial or a re-underwrite. You want to avoid any change in your job status while completing your loan, and if there is the slightest chance something might change you need to speak to your loan officer immediately about this.
Do not assume that because you are getting a better offer that it will be approved. Changes like these scare underwriters and will increase the amount of documentation you get, it could delay your closing, cost you a rate lock, or you could lose your purchase money escrow altogether.
You will save thousands in lost time and money by being as upfront as possible with your loan officer.
Aside From Working 7 Days A Week On Your Schedule, We’re Experts On The Most Popular purchase Programs To Hit Today’s Mortgage Market!
The Truly Determined Borrower Ultimately Wants The Best Rate & Loan Term Possible, And At BuildBuyRefi, We Offer Some Of The Best Customer Service On The Market Today.
We Won’t Leave You Guessing What Is Going On!
You may ask, why do other lenders and even my local bank offer really high interest rates, shorter terms, or require a higher down-payments?
That’s a great question!
Short answer, because they aren’t competative.
The Top 3 reasons why other Lenders Find it hard to Compete with BuildBuyRefi in the New purchase market.
#1. We Have Some Of The Most competitive New Purchase products, rates & loan terms:
Most lenders, brokers, and banks only have a few programs, indeed not offering anything near the vast array of manufactured loan products we have. Their rates are higher and loan term shorter because they can’t touch the monthly volume we produce.
They tease you with low rates but hide the small print, for example, that meager teaser rate could be interest-only, require a 740 or higher score, and also require a substantial down-payment. Many customers get upset when finding out they don’t get a rate that is advertised, this along with daily changing interest rates is a reason we do not publish general rates and most lenders doing so are hiding the fine print at the very bottom.
#2. We’re seasoned veterans On Purchase Loans & A 5 Star Rating Working With Realtors Across The Country:
Most are not seasoned veterans in the purchase lending sphere, meaning the loan officer you work with might never have closed on one of these more niche product types before and that is a dangerous mix to get involved with. You need a banker that knows how to navigate these different styles of loan programs, and most of our bankers have 15-30 years experience each lending on these unique program and property types.
#3. We Want To Help You Buy your new Home With Zero-Down, or Low-Down-payments On All Property Types:
Your local bank or credit union may be acting like they are doing you a favor to keep you with them, but they don’t want 100% loans on their books. They may talk you into putting more money down or taking a higher rate saying they are making an exception to the guidelines. In this case, their inability to be competitive or have the desire for your unique property type is costing you more just by staying loyal. And while we love loyalty, we feel you shouldn’t take a rate that is 2-5% higher requiring 20% or more down to sacrifice for that loyalty.
5-Star Lender Reviews That WOW!
Richie, OK... so you've officially done something I've never seen in 22+ years selling real estate. Closed a VA Loan on 224 Acres, with a Manufactured Home. CONGRATULATIONS! and THANK YOU!!! Admittedly, I was skeptical (more like pessimistic) when James told me you were going to get this VA Loan completed. And I had many doubts along the way, because I'd seen so many VA Lenders fall flat on their faces, just before the Closing. BUT... You got the Job DONE! Occasionally, I find someone out there who has done an Outstanding Job, helping my Clients... and You are one of these! I'm now officially a FAN of You and Your Work. I would be honored to promote you and your services to other Agents within our company, and I intend to do so. I will call you when I've caught up on my work a bit... and learn more about how I can do my job better on the next VA transaction.
~Tom K. Realtor