Specialty home loan programs, such as bridge loans, down payment assistance, and Home Equity Lines of Credit (HELOCs), offer tailored financial solutions to meet specific needs of home buyers and homeowners. These programs address unique situations that traditional mortgages may not fully accommodate.
What we talk about in this guide:
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:
(*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.
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:
State Programs:
Types of DPA Programs
National Programs
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%.
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.
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.
Eligible Medical Professionals
*Information is subject to change and dependent upon qualifications. Only available to loans up to$1,500,000.
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.
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:
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:
Navigating the world of mortgages and home loan programs can feel overwhelming, but understanding the basics can make the process much smoother. To help you on your journey to homeownership, we've compiled a list of frequently asked questions about mortgages and home loan programs.
Whether you're a first-time homebuyer or looking to refinance, these questions and answers are designed to provide you with the knowledge and confidence to make informed decisions about your home financing options.
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.
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.
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.
Types of Assistance:
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.
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.
Explore more guides to other loan program types. If these programs don't fit your needs, look into our other guides to the other types of loan programs. To learn more about loan programs in general, you can view our Expert Guide to Home Loan Programs.
Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.
We strive to provide comprehensive information about our home loan programs; however, it is important for users to understand that not all programs are available at all times or in all locations. Each loan program may have specific prerequisites or requirements that must be met in order to qualify or become eligible.
While we make every effort to ensure the accuracy and currency of the information on our website, we cannot guarantee that a particular loan program will be available when you apply. Additionally, meeting the listed criteria does not guarantee qualification for any program.
Please note that availability and eligibility for our home loan programs are subject to change without notice. We recommend contacting us directly to verify the current status and specific requirements of any program you are interested in before making any decisions based on the information provided on our website. Our team is here to help you navigate your options and find the best loan program to meet your needs.