Specialty Loan Programs

Every now and then, an opportunity arises you know you need to jump on. Sometimes that opportunity is to buy your dream home even though your current home hasn’t sold yet. In other cases, you may need to relocate for a job and don’t have time to sell your home before purchasing in a new city. While this situation can be tricky to navigate it isn’t impossible.

So … How does a homeowner buy a new home while still paying for their current home?

Enter: the bridge loan.

A bridge loan is sometimes called a gap loan because it fills in the "gaps." A bridge loan acts as a short-term financing until the original home is sold, allowing a home buyer to take on a conventional home loan.

Qualifications for bridge loans:

• You need to have at least 20% equity in your home built up to be eligible for a bridge loan.
• Credit score requirements are higher, usually a minimum of 700 is necessary to be considered.
• Low debt-to-income ratios are also a requirement to qualify for gap financing.
• Most bridge loans are designed to be paid back within six to 12 months.
• The loan cannot be for more than 80% of the value of your current home.
• In most cases, your new mortgage will need to be financed by the same company that gives you the bridge loan.

(*Qualifications may vary based on lender.)

What are the pros to using a bridge loan?

A bridge loan can have a faster application process compared to traditional home loans. You may also be able to waive contingencies which can look good to home sellers and close faster, since your offer won’t be based on your current home selling. The biggest benefit is you can purchase your new home without selling your current home first.

What are the cons to using a bridge loan?

Interim financing can be expensive. Unfortunately, there’s no way around that. Interest rates tend to be much higher due to loans being short term. In addition, the requirements are stricter when it comes to bridge loans, which may make them harder to obtain. Many lenders will also charge higher fees on these loans.

Bridge loans also need to be paid by a specific date, regardless of when your original home sells. So, if your current home doesn’t sell within the timeline of the bridge loan, you will not only have to payback the loan while making mortgage payments on both homes, but you will be responsible for the expenses of both homes as well. This will include homeowner’s insurance and property taxes, as well as bills such as water and electric.

Discuss this program with a Churchill Loan Officer

A condotel is a condominium project that is operated as a hotel with a registration 
desk, cleaning service and more. The units are typically individually owned. Unit 
owners also have the option to place their unit in the hotel's rental program where it 
is rented out like any other hotel room to paying guests.

To qualify, you'll typically need a high credit score and a down payment of at least 20%. 

Discuss this program with a Churchill Loan Officer

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

What Are Down Payment Assistance Programs?

Down Payment Assistance (DPA) programs help prospective homebuyers cover the costs of a down payment, making homeownership more accessible.

Who Do They Help and How?

DPA programs primarily assist first-time home buyers, low- to moderate-income families, and specific populations like veterans and public service professionals. They provide financial aid through various means such as grants and loans.

National vs. State Programs

National Programs:

• Administered by federal agencies like HUD.
• Available nationwide with broader eligibility.

State Programs:

• Managed by state agencies.
• Tailored to local needs and conditions.

Types of DPA Programs

1. Grants: Non-repayable funds for down payments.
2. Forgivable Loans: Loans forgiven over time if conditions are met.
3. Deferred Payment Loans: Repayment deferred until the home is sold or refinanced.
4. Matched Savings Programs: Programs that match the savings of homebuyers, enhancing their ability to make a down payment.

National Programs

• Lakeview National DPA Program
• Essex National Homebuyer's Fund DPA

Discuss DPA programs with a Churchill Loan Officer

This program establishes a maximum or capped rate for up to 270 days in order to protect the borrower from the potential of 
rising interest rates. If interest rates increase, the rate stays at the capped rate. If interest rates decrease, borrower receives the lower 
rate. 

There is a 1% cost to borrowers to use the Extended Rate Cap program; a rate cap adjustment will be applied to the base rate selected at time of program initiation. The result will be known as the capped rate.

General Questions

Q: Which products are eligible for the extended rate cap program?
A: All CMC Fixed, First Lien Products are available to use the extended rate cap program. CMC No Score loans are eligible for
the extended rate cap program. 

Q: Are there any restrictions on loan parameters?
A. Yes, the extended rate cap program is only eligible for use on primary and secondary occupancy only. In addition, only 
purchases are eligible. The only exception to allowing a refinance would be when the borrower is completing a construction 
loan, and it must be run as a refinance for eligibility purposes.

Q: Can I extend my lock?
A: No, extensions past the extended rate cap expiration date are not allowed.
Capped / Final Rate Questions

Q: How is the capped rate calculated?
A: The capped rate is determined by taking the 60-day pricing plus a rate cap fee outlined in the following table. 

(Example: If the applicable product pricing for 60-day is 4.5% at 100.00 and the borrower is wanting a 150-day capped 
commitment, the capped rate will be 4.875%.

Discuss this program with a Churchill Loan Officer

A Home Equity Line of Credit (HELOC) is a type of revolving credit that allows homeowners to borrow against the equity in their homes. It functions similarly to a credit card, where you can borrow, repay, and borrow again up to a certain limit.

Key Benefits:

• Flexible Access to Funds: Borrow only what you need, when you need it, up to the approved limit.
• Lower Interest Rates: HELOCs typically have lower interest rates compared to credit cards and personal loans because they are secured by your home.
• Interest-Only Payments: During the draw period, you may have the option to make interest-only payments, reducing your monthly financial burden.
• Tax Deductibility: Interest paid on a HELOC may be tax-deductible if used for home improvements (consult a tax advisor for specifics).

Who Benefits Most:

• Homeowners with Significant Equity: Individuals with substantial home equity can maximize the borrowing potential of a HELOC.
• Those Needing Flexible Funding: Ideal for homeowners who require access to funds for ongoing or unpredictable expenses, such as home renovations, medical bills, or educational expenses.
• Budget-Conscious Borrowers: Homeowners looking for lower interest rates and manageable monthly payments can benefit from a HELOC's financial structure.
• Tax-Conscious Individuals: Homeowners seeking potential tax benefits related to home improvement expenses can find HELOCs advantageous.

Discuss this program with a Churchill Loan Officer

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

This program allows individuals with an Individual Tax Identification Number instead of a Social Security Number to purchase a home or refiance their current home.

Individuals who could benefit from these loans include both residents and non-residents 
who aren't citizens of the US, and the spouses of these individuals.

To qualify, you'll typically need a high credit score and a down payment of at least 20%. Talk to a Home Loan Specialist to see if you are eligible for this program.

What is an ITIN mortgage loan?

Individual Tax Identification Number (ITIN) loans are for people who are not eligible for Social Security numbers. ITIN loan requirements can vary by lender. Borrowers who use ITIN cards for identification and tax purposes should call a lender to discuss requirements and eligibility.

Can a borrower without a Social Security card use an ITIN card to get a mortgage?

Yes, an ITIN mortgage loan allows ITIN card  holders to obtain a mortgage. ITIN is used in lieu of SocialSecurity for identification purposes.  The borrower would also need to meet all of the requirements to be eligible for an ITIN mortgage loan.

Is an ITIN mortgage loan a full doc loan?

Yes. These loans require documentation and information to determine a borrower’s eligibility. Documentation and information needed will vary based on a borrower’s circumstances. A lender can advise on what is needed to qualify for this loan type.

Discuss this program with a Churchill Loan Officer

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

You've got your dream job, let us help you get your dream home! The Medical Professionals loan program is designed for borrowers who have student loans or limited savings. This loan program offers expanded qualification requirements to help medical professionals qualify to purchase a home. Eligible borrowers may be currently practicing or begin employment within 90 days of closing and must contribute at least 3% towards the transaction from their own funds.

• Available for purchase & Rate / Term refinance transactions up to $1,500,000
• Loan-to-Value rations up to 90%**
• Available on Adjustable Rate Mortgage

Eligible Medical Professionals

• Medical Residents (Educational License)
• Medical Doctors (MD)
• Doctors of Dental Surgery (DDS)
• Doctors of Dental Medicine (DMD)
• Doctors of Optometry (OD)
• Doctors of Ophthalmology (MD)
• Doctors of Podiatric Medicine (DPM)
• Doctors of  Pharmacy (PharmD)
• Doctors of Osteopathy (DO)
• Doctors of  Veterinary Medicine (DVM)
• Physicians Assistant
• Registered Nurse
• Nurse Anesthetist
• Nurse Practitioner
• Clinical Nurse Specialist

*Information is subject to change and dependent upon qualifications. Only available to loans up to$1,500,000.

Discuss this program with a Churchill Loan Officer

A Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage available to homeowners aged 62 and older. It allows them to convert part of the equity in their homes into cash, providing financial flexibility during retirement.

Key Benefits:

• Supplement Retirement Income: Provides additional funds for daily expenses, medical bills, home repairs, or other needs without monthly mortgage payments.
• No Repayment Until Home is Sold: The loan doesn’t need to be repaid until the homeowner sells the home, moves out permanently, or passes away.
• Flexible Disbursement Options: Choose from lump sum payments, monthly payouts, a line of credit, or a combination of these options.
• Non-Recourse Loan: Borrowers (or their heirs) will never owe more than the home's value at the time of sale, even if the loan balance exceeds this value.

Who Benefits Most:

• Retirees Seeking Financial Security: Older homeowners looking to supplement their retirement income or cover unexpected expenses.
• Homeowners with Significant Equity: Individuals with substantial equity in their homes can maximize the amount available through a HECM.
• Those Wishing to Age in Place: Homeowners who want to remain in their homes while accessing funds for living expenses or home modifications.
• Individuals Without Heirs: Homeowners who are less concerned about leaving their home as an inheritance and more focused on financial stability during their lifetime.

Discuss this program with a Churchill Loan Officer

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

Looking for land?

The RuraLiving®Program may be your answer! Whether you’re hoping to build a chicken coop for farm fresh eggs or just need more room for your animals and gardens, the RuraLiving® program from Churchill Mortgage can give your hobby farm the financing it needs!

Program Details:

• 15 or 30-year fixed-rate financing
• 680 minimum credit score
• For primary or secondary residence
• Minimum of $500 in agriculture income able to be generated
• 160 acres or less
• Three dwellings allowed on property

Ready to create the homestead of your dreams? Discuss this program with a Churchill Loan Officer

Texas Short-Term Bridge Loan

If you’re wanting to buy a new home before you’ve sold your current home, Churchill Mortgage’s Texas Short-Term Bridge Loan may be for you.

Program Details:

• 720 credit score
• Full appraisal required
• Departing residence must be listed for sale
• Only for borrowers in Texas

Discuss this program with a Churchill Loan Officer

A bridge loan is a short-term loan designed to provide immediate financing for borrowers who need to bridge the gap between the purchase of a new property and the sale of their current one. These loans are typically used in real estate transactions when a homeowner wants to buy a new home before selling their existing one. Bridge loans offer quick access to funds, usually with a term of six months to three years, and are secured by the borrower's existing property. The loan is often repaid with the proceeds from the sale of the current home. While bridge loans can be beneficial in providing temporary financial assistance, they usually come with higher interest rates and fees compared to traditional long-term financing options.

A Home Equity Line of Credit (HELOC) is a type of revolving credit line that uses the borrower's home as collateral. Unlike a traditional home loan, which provides a lump sum, a HELOC allows homeowners to borrow money as needed up to a certain credit limit during a specified draw period, typically 5 to 10 years. Borrowers can draw on the line of credit, repay, and draw again, similar to how a credit card works.

The amount you can borrow is usually based on a percentage of your home’s appraised value minus the balance of any existing mortgages. During the draw period, you typically make interest-only payments on the amount borrowed. After the draw period ends, the repayment period begins, usually lasting 10 to 20 years, during which you repay the borrowed amount plus interest. HELOCs are often used for home improvements, education expenses, or debt consolidation, offering flexibility and potential tax advantages on the interest paid, depending on current tax laws.

Down payment assistance (DPA) for a home loan program is financial aid provided to homebuyers to help cover the cost of their down payment and, in some cases, closing costs. This assistance can come in various forms, including grants, low- or no-interest loans, deferred payment loans, and forgivable loans, often provided by government agencies, non-profit organizations, and even some private lenders.

How Down Payment Assistance Works:

1. Eligibility: To qualify for DPA programs, buyers typically need to meet certain criteria, such as income limits, purchase price limits, and property location requirements. Some programs are specifically designed for first-time homebuyers, while others may be open to repeat buyers.

2. Application Process: Buyers must apply for DPA programs, often through participating lenders or directly with the organization offering the assistance. The application process usually involves providing documentation of income, creditworthiness, and details about the property being purchased.

3. Types of Assistance:

   • Grants: These are funds that do not need to be repaid, effectively reducing the amount of the down payment required from the buyer.
   • Low- or No-Interest Loans: These loans help cover the down payment and must be repaid over time, but they typically come with favorable terms.
   • Deferred Payment Loans: These loans do not require repayment until the home is sold, refinanced, or the mortgage matures.
   • Forgivable Loans: These loans are gradually forgiven over a set period, usually if the buyer remains in the home for a certain number of years, effectively turning the loan into a grant.

4. Integration with Mortgages: DPA can be used in conjunction with various mortgage types, including FHA, VA, USDA, and conventional loans. Lenders often work with DPA providers to seamlessly integrate the assistance into the mortgage process.

5. Impact on Home Buying: By reducing or eliminating the need for a large down payment, DPA programs make homeownership more accessible, especially for buyers who have steady income but lack the savings for a substantial down payment. This can also help buyers secure better loan terms by allowing them to meet the down payment requirements of certain loan programs.

Overall, down payment assistance programs aim to lower the financial barriers to homeownership, making it possible for more people to achieve their goal of buying a home.