100% Financing Loans Ideal for first time buyers as these loans can reduce or eliminate nearly every cost associated with obtaining a home loan. Borrowers with strong credit profiles can often borrower up to 3% more than the purchase price thereby enabling them to finance closing costs in as well as down payment. Conforming Loans Conforming long-term, fixed rate and adjustable rate loans that meet Fannie Mae and Freddie Mac (governmental agency) loan limits and property/borrower guidelines. (2007 Limit - $ 417,000 on single family homes) Subprime Loans Generally, subprime loans are designed for borrowers with less than perfect credit profiles (two or more 30 day late payments, bankruptcy, judgments, repossessions or chargeoffs within 24 months of loan application). Subprime borrowers generally will have higher interest rates and be required to make higher downpayments than borrowers with a perfect credit profile. No Income Verification Loans Ideal for self employed borrowers as well as wage earners with strong credit profiles. Income is often “stated” and not verified through paystubs or tax returns. Income generally has to be reasonable for the borrower’s profession and employment status will be verified. FHA Loans These are government insured loans and offer borrowers with less than perfect credit profiles to obtain competitive rates by fully documenting their income and assets. Properties must satisfy FHA requirements which generally means that properties are deemed safe and habitable during the home appraisal process.