Mortgage Borrower Types
Mortgage Borrowers either Purchase, Construct, or Refinance property

• First Time Home Buyers
• 2nd time home owners
• Government Employees (Teachers, Police, Fire Fighters, Veterans, etc...)
• Investors
• Residential Borrowers
• Commercial Property Owners

First Time Home Buyers (New Purchase)
The very first time for a borrower (FTHB) to purchase a home.  A second time buyer can be a first time buyer if there is substantial time between purchases where the mortgage account drops off all credit repository records. Such as when a divorce occurs and one spouse turns to renting for a three year period....that spouse will be considered a FTHB

Second Time Home Borrowers (2^nd Home Financing)
A property designated as a second residence (i.e.. vacation home), and is livable year round.  The property owner generally resides at different property referred to as "Primary Home"  that is not intended as rental property.  Second (vacation) homes are not considered investment properties.  (See VA home loans).

Refinance / Refinancing
The process of paying off one loan with the proceeds from a new loan secured by the same property. 

The main reasons for  refinancing is to better the borrower with a lower interest rates, loan term reduction, switch to or from a fixed or ARM loan, receive cash out, debt consolidation, or to eliminate a balloon payment.

Once a borrower has made the payments on a portfolio loan for over a year without any late payments, the loan is considered to be "seasoned."   Once a loan has a track history of timely payments it becomes marketable, even if it does not meet Freddie/Fannie guidelines. 

VA Home Loans - Eligible Veterans and Their Families including Reservists
VA  allows veterans and servicemen discounts on home purchasing.  The first time user of VA Benefits realizes the greatest savings.  VA loans must be in the First Lien Position.  VA guarantees only one home per eligible veteran and a 2^nd time home borrower is a Veteran that has previously used VA funding on a prior home.

Government Employees - Teachers or Public Safety Employees 
Borrowers in the following professions may qualify for 1- or 2-unit property

 Teachers

• Teacher or administrator (including principal, vice principal, librarian or healthcare specialist or a similar professional at the elementary or secondary levels)

• Full-time employee of a public or private school or federal, state, county or municipal educational agency,

• State certified, in the process of state certification, or employed by a school recognized by a state or regional accrediting association.

Public Safety Employee

• Full-time sworn employee of a police department, sheriff's office or corrections department that is part of or administered by the federal government, a state a political subdivision of a state, a commission created by interstate compact, university, hospital, utility, airport or port authority responsible for prevention and detection of crime, penal enforcement, traffic, highway laws, incarceration or detention of offenders, or
  

• Full-time sworn member of a local, state, or federal fire department or agency responsible for at least one:

  • Fire suppression

  • Emergency medical response and patient care

  • Fire and injury prevention

  • Arson investigation

  • Hazardous materials incident response and management

  • Response to acts of terrorism.

Non-Conforming Borrowers

Almost any conforming loan type can be substituted with a non-conforming, or non-conventional mortgage loan (Whether the loan is for a First lien positioned loan, or Second mortgage loan) if any following items fall outside the lender conforming criteria guidelines, borrower loans are  based on  non-conforming guidelines.

• Loan amount (i.e. exceeds conforming guidelines)

• Imperfect Credit (i.e. Borrowers with less than perfect credit criteria ("B/C and D" Credit Ratings)

• Income Ratio (D/R)

• Property (i.e. non-owner occupied)

• Residence (i.e. non-owner occupied, second homes not

• Employment (i.e. Borrowers with disruptions in employment history, or borrowers that are paid in cash)

Expanded Criteria - Non-Conforming Income Documentation

Nonconforming loans can also refer to self-employed borrowers for i.e. that are paid in cash which results in alternate loan documentation, and for Borrowers with disruptions in employment history. 

MTG believes the Non-Conforming Lending Market is expanding with competition that will produce better rates, loan programs and terms due to ever growing Traditional lender restrictions (credit ratings primarily).

Investment or Investor
Generally a term for a non-owner occupied (N/O/O)but can be owner occupied, 1-4 unit residential property, that is purchased with the intention of realizing a future profit.  The investor usually owns multiple properties.

Investor - Fix-N-Flip Properties
Same as Investment Property (Investor Property) with the exception that property is purchased for immediate sale after rehabilitated (fixed & repaired - carpet, lawn care, fixtures, overall appearance etc.).

Fix-n-flip properties include  1-4 unit and  5-19 unit multifamily residential property.

Commercial Property Borrowers
Commercial Borrowers typically consists of an: Individual,  Corp.,  LLC,  Trust Ltd or Gen Partnership. 

Lenders qualify the income potential of the commercial property, not the borrower as with residential lending.

Commercial property types

• Retail (grocery chain, supply outlets, Specialty centers, etc...)

• Health Care (hospital, medical practice, nursing/care facilities, etc...)

• Hotels (mom and pop to national chain, Resorts, etc...)

• Industrial (fabrication shops, executive/Industrial parks, warehouses, etc..)

• Mixed Use (restaurant on main floor...all upper floors as business leased)

• Mobile Home Parks

• Multifamily (apartments (5+ Units), Student Housing, Military Housing etc.)

• Office Buildings

• Self Storage