THE BROKER ADVANTAGE.

Choosing a mortgage broker when buying a home gives you an edge. Unlike banks or single lenders, we aren’t tied to one institution. This freedom means we sift through various lenders to find the deal that’s just right for you—often at better rates and with more flexible options. Banks limit you to their own products, but with us, you access a broader market of more than 50 different lenders. That’s the Broker Advantage—more choices, better terms, tailored to your needs.

  • THE RIGHT LOAN FOR YOU.

    Let us guide you—this is our specialty.

    With access to over 50 mortgage lenders and their diverse product lines, we tirelessly search to find the perfect fit for you. Don’t let a bank or a lender restrict your options with their single product offerings and unnecessary overlays. For instance, if you’re told you need a 660 credit score but yours is 620, that might be their rule, but it’s not the same everywhere. As brokers, it's our job to navigate through various lenders, comparing their requirements to place you where you best qualify.

    We’re the ‘can-do’ team at Legacy. We never say ‘no’. If we can't find a product fit immediately, it’s not a ‘no’—it's a ‘not yet’. We’ll provide you with clear steps to enhance your eligibility and make your dream of homeownership come true. In our eyes, building a legacy through homeownership is possible for everyone.

  • WE CONTINUE TO ADD TO OUR LIST OF VENDORS.

    We proudly offer a selection of over 50 diverse lenders.

    Like the industry itself, strategies among banks and mortgage lenders frequently shift. As brokers, we witness these changes regularly. One day, a lender might offer competitive rates for a specific scenario, and then, just as quickly, another may emerge with better pricing a few weeks later. Whether it’s due to cost adjustments or special promotions—like a one-month special on VA loans—we're always ready to capitalize on these opportunities for you.

    Many lenders impose extra requirements, known as 'overlays', on top of standard guidelines. They might refuse borrowers with credit scores below a certain threshold. If you're told you don't qualify, it might just be with that particular lender, not all. Our wide array of lenders means we can find the right fit for your unique situation, giving you the Broker Advantage amidst a dynamic lending landscape.

  • MARGIN.

    We're letting you in on a little secret: the biggest factor impacting your rates is what we call 'margin'—essentially, the cost of doing business. If a company, a regional retail lender, or a specific bank has high operational costs, they need a higher margin to cover these expenses. Consequently, their rates are higher because, in essence, clients are paying to keep them in business.

    This became strikingly clear when Josh ran a branch for a lender and saw firsthand how overhead influenced rates. After closing a VA purchase with about 4% revenue to his branch, he discovered that each loan type this lender offered had its own set margin, dictated by regional management. This limited flexibility when competing with other lenders offering lower rates, all due to high operational costs.

    At The Legacy Team, we operate differently. We keep our overhead low—no middle management salaries, no pricey benefits, and no extravagant marketing budgets or fancy offices. This strategic choice allows us to maintain lower margins, ensuring that our clients get the best possible rates. We’re committed to this approach because we want our clients to win. That's our goal, our model, and our promise to you.

OUR LOANS

COMMON LOANS

The majority of home loans across America fall under conventional financing (Fannie Mae & Freddie Mac) and government loans (FHA, VA, USDA). Below are short descriptions of those ‘common’ loans.

  • Conforming or conventional loans are the standard type of mortgage not secured by the government but through private lenders like banks, credit unions, and mortgage companies. Though not government-backed, some are guaranteed by government-sponsored enterprises such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

    These loans typically have stricter lending criteria because they are not federally guaranteed. They offer flexibility with down payments as low as three percent, but it's important to note that putting less than 20% down will require private mortgage insurance.

    Conforming loans, often referred to as conventional loans, are a popular choice for homebuyers seeking traditional financing options.

  • An FHA loan is a mortgage backed by the Federal Housing Administration, ideal for first-time home buyers or those with minimal savings or credit challenges. With a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher, FHA loans are widely accessible.

    These mortgages are insured by the FHA and issued by approved lenders such as banks, credit unions, and nonbanks. This insurance helps protect lenders in the event of a borrower defaulting, enabling them to offer favorable terms. For those with credit scores between 500 and 579, FHA loans are still possible, albeit with a bit larger of a down payment.

    FHA loans also require both upfront and monthly mortgage insurance, regardless of the down payment size, ensuring continued protection for lenders. This makes them a reliable and popular choice among a variety of home buyers.

  • VA loans offer an incredible opportunity for veterans, active duty service members, and their surviving spouses to buy homes under exceptionally favorable terms. This program, backed by the U.S. Department of Veterans Affairs, allows for little to no down payment and no private mortgage insurance, often with competitive interest rates.

    Private lenders like banks and mortgage companies handle the actual financing, but the VA supports these loans, ensuring easier qualification than many conventional loans. Applicants simply need a Certificate of Eligibility from the VA, obtainable through their service documents.

    Key benefits include:

    -No down payment is usually required unless the purchase price exceeds the property's value.

    -No need for private mortgage insurance.

    -The Seller can pay closing costs, keeping upfront expenses low.

    -Freedom to pay off the loan early without penalties.

    -VA assistance available to help manage loan payments and avoid default.

    VA loans are designed to be accessible, offering a straightforward path to homeownership for those who've served our country.

  • USDA loans are designed to help potential homeowners in rural and suburban areas achieve their dream of homeownership with zero down payment and favorable interest rates. Guaranteed by the U.S. Department of Agriculture, these loans are similar to FHA and VA loans but come with significantly lower mortgage insurance premiums if you choose to put little or no money down.

    To qualify, income limits vary by location and household size, which you can check using the USDA’s online map and table. These loans are strictly for owner-occupied primary residences and have several other eligibility requirements:

    -U.S. citizenship or permanent residency.

    -Monthly housing payments (including principal, interest, insurance, and taxes) that don’t exceed 29% of your monthly income, with total monthly debt payments not surpassing 41% of your income—though exceptions may be made for those with a credit score above 680.

    -Steady income for at least 24 months.

    -Satisfactory credit history, though allowances are made for temporary or uncontrollable setbacks like medical emergencies.

    USDA loans are a fantastic option for those looking to buy a home in less densely populated areas, offering a pathway to homeownership with minimal upfront costs.

UNCOMMON LOANS

For those of us that may not fit into the box of Conforming (Conventional) Loans or government-backed mortgages, there is another world that exists. Today we call this world ‘Non-QM’ loans. Some lenders or banks may call them ‘Portfolio’ loans. 

  • Non-QM loans provide a flexible mortgage solution for homebuyers who don't fit the traditional lending criteria. If you’re self-employed, have variable income, or lack the standard documentation required for a conventional mortgage, a Non-QM loan might be the right choice for you.

    These loans are designed to accommodate unique financial situations, offering an alternative route to homeownership for those who need a different approach than what is typically available through conventional qualifying mortgages. Non-QM loans open the door for many who might otherwise be unable to secure home financing due to the rigid requirements of traditional loans.

  • Jumbo loans are designed for financing properties that exceed the loan limits set by Fannie Mae and Freddie Mac, the entities that back most U.S. home loans. If you're looking to buy a high-value property, a jumbo loan might be your necessary route.

    Due to the larger loan amounts and increased risk associated with these mortgages, jumbo loans typically require a larger down payment and often come with slightly higher interest rates compared to standard conforming loans. They are ideal for borrowers looking to purchase luxury homes or real estate in highly competitive markets where property values surpass the usual lending limits.

  • ITIN loans cater to borrowers who do not have a Social Security number but can provide an Individual Taxpayer Identification Number (ITIN) as an alternative form of identification. These loans are an excellent option for non-U.S. citizens who are looking to purchase a home in the United States.

    Applicants typically need to demonstrate a steady work history of at least two years and should expect to make a down payment ranging from 15% to 25%. ITIN loans expand access to home financing, helping a broader range of people achieve their homeownership dreams.

  • Bank statement loans are tailored for borrowers who may not have traditional income documentation but can demonstrate their financial stability through bank statements. These mortgages use the borrower's bank statements—covering a period of 3, 12, or 24 months prior to the application—to verify and evaluate income.

    This type of loan is particularly beneficial for self-employed individuals, freelancers, or those with variable incomes who might find it challenging to provide standard income proof required by other loan types. Bank statement loans simplify the process, focusing on real cash flow rather than conventional income metrics.

  • DSCR loans, or Debt Service Coverage Ratio loans, are specifically designed for real estate investors. This type of non-QM loan assesses a borrower’s ability to repay based on the property’s income-generating potential rather than traditional income verification methods.

    Lenders calculate the DSCR by comparing the property’s annual net operating income to its annual mortgage debt service, including principal and interest. This method allows them to quickly and effectively determine whether the income generated is sufficient to cover the loan payments. DSCR loans are ideal for investors who prefer a straightforward qualification process that focuses on the investment property’s financial performance rather than personal income details.

  • Foreign National Mortgage Loans offer citizens of other countries the opportunity to purchase property in the United States. Whether you’re looking to buy a vacation home or an investment property, these loans provide a pathway to owning real estate in the U.S., even if you are not a resident.

    U.S. mortgage companies and banks extend these loans, recognizing the unique circumstances of foreign buyers. The process allows non-residents to finance properties similarly to U.S. citizens, accommodating those who wish to own real estate in America either as a secondary residence or as an investment. This loan type opens doors for international buyers to invest in the U.S. real estate market.

  • One Time Construction streamline the financing process for new home construction by combining the construction loan and the permanent mortgage into one single loan. This approach simplifies the path from building to homeownership with just one application, one loan origination, and one closing process.

    Ideal for those looking to build their new home without the hassle of multiple loans and closings, this type of loan minimizes the paperwork and coordination typically required. It offers a seamless transition from construction to permanent financing, making it a convenient and efficient choice for prospective homeowners embarking on new construction.

  • A Piggyback Second Mortgage is a type of home equity loan or home equity line of credit (HELOC) taken out concurrently with the main mortgage. This strategy is designed for borrowers who have low down payment savings but wish to avoid paying for private mortgage insurance (PMI).

    By securing a second mortgage at the time of the first, borrowers can effectively increase their down payment, qualifying for the main mortgage under more favorable terms. This approach not only helps in meeting lender requirements but also in reducing monthly PMI costs, making home ownership more accessible and affordable.

  • 40-year term loans function similarly to the traditional 30-year mortgages but are amortized over a longer period of 480 months instead of 360. This extended amortization schedule offers a significant short-term benefit: lower monthly payments. By stretching the repayment term an additional 10 years beyond the standard 30-year mortgage, borrowers enjoy more manageable monthly expenses, making homeownership more accessible for those who need lower payments to fit their budget.

  • Interest-only loans provide a unique financial arrangement where you are required to pay only the interest on the mortgage for a set period. This setup results in lower monthly payments initially, as you are not paying any principal during this phase.

    The major advantage is the significant reduction in your monthly payment amount, enhancing affordability and cash flow flexibility. However, the downside is that during the interest-only period, you are not reducing the loan’s principal balance, which means no equity is being built in the property. This type of loan is best suited for borrowers who anticipate higher future income or those who plan strategic financial moves with the money saved from lower payments.

  • Bridge loans provide quick, short-term financing to help you buy a new home before selling your current one. They fill the financial gap, enabling you to transition smoothly without waiting for your old house to sell. This makes them perfect for seizing your next dream home without delay, ensuring a seamless move.

  • Qualifying Homes Include:

    -Homes in parks on leased land

    -Homes on private land

    -Single and multi-section homes, both new and used

    -Primary residences and secondary or vacation homes

    -Homes that have been moved twice

    -Homes not permanently affixed to property

    -Pre-HUD homes built before June 15, 1976

    -Homes in Residential Owned Communities (ROCs)