How do you decide which loan program fits a particular borrower?

Hi, this is Jason Skelton with Pacific National Lending.

Welcome to another Q&A session where I answer mortgage questions from you all on the internet.

Today's question is:

"How do you decide which loan program fits a particular borrower?"

Summary:

Jason explains that his team does not begin with a product and then fit the borrower to it. Instead, every application is run against all available loan programs. That means evaluating it as an FHA loan, as a conventional loan, checking both Fannie Mae and Freddie Mac, and adding USDA to the comparison when the property sits in a qualifying rural area. For veterans, VA loans enter the comparison as well. Beyond program eligibility, the recommendation is shaped by the borrower's credit, their income, and their plans for the home — specifically how long they intend to live there and what their short-term and long-term goals are. All of those factors combine to determine which program is genuinely the best fit.

Answer:

We analyze all loan programs for everybody. So when you apply, we will run it as an FHA, as a conventional, and we'll check Fannie and Freddie. If it's in an area that qualifies for USDA, we'll look at that as an option as well. Or if you're a veteran, we'll look at the VA loans as well and compare those and see which one is going to be the best for your situation. Credit comes into play, income comes into play, and your plans for the home. How long do you plan on living there? What are your long-term and short-term plans? All of those come into play in deciding which loan program is best for you. We don't start with a program and then try to fit you into it — we look at everything you might be eligible for and compare them side by side before we make a recommendation.