Loan Programs

Loan Process Overview

Finding the right home is hard enough — finding a loan should be easy.

Our loan process is simple — just fill out our online application to get the process started. When you submit your application within normal business hours (Monday through Friday, 8:00 a.m. to 5:00 p.m.), you’ll typically receive a response from one of our loan officers within eight to 24 hours.

By filling out this application, you authorize Blue Star Residential Lending to pull your credit rating.

You’re always welcome to contact us personally to set up an appointment, or call us with any questions you might have.

Conventional Mortgage Loans

Lower rates. Higher standard of service.

Conventional Loans (Loans from $50,000 – $647,000)

A conventional loan is a lender agreement that is not guaranteed or insured by the federal government under the Veterans Administration (VA), the Federal Housing Administration (FHA), or the Rural Housing Service (RHS) of the U.S. Department of Agriculture. A conventional loan can, however, follow the guidelines of government-sponsored enterprises (GSEs) like Fannie Mae or Freddie Mac. Both Fannie Mae and Freddie Mac are stockholder-owned corporations and are not part of the federal government.

Programs Available for Purchases

Up to 95% LTV (Loan to Value/purchase price) Financing
95% LTV on a single loan, with PMI (Private Mortgage Insurance) or LPMI (Lender Paid Mortgage Insurance)
80/15/5, 80/10/10, 80/5/15 (First Mortgage Amount / Second Mortgage Amount / Down Payment Amount)

These programs are First and Second mortgage combo loans, designed to eliminate PMI. With an 80% first lien, borrowers can also choose to waive escrows 80% LTV or below – The “standard” home loan. Paying 20% down or more allows borrowers the opportunity to waive escrow, and offers the lowest interest rate possible.

Most programs have the following terms available:

30, 25, 20, 15, or 10-Year Fixed
3, 5, 7, or 10-Year ARM (Adjustable Rate Mortgage)
Interest-Only programs are available upon request.

For more information on our loan programs, Contact us today. If there is a program you do not see on this list, let us know and we will inquire about that program for you.

Conventional Home Refinance

Your potential is unlimited — and so are your lending options.

Fannie Mae or Freddie Mac Refinance

We offer refinancing through Standard Fannie Mae or Freddie Mac Refinance Programs. These allow the borrower to finance up to 95% of the current market value/appraised value of their home. A borrower can pay off a first lien alone, or roll a first and second lien together. As a general rule of thumb, depending on your loan amount, it is usually a good idea to refinance if you can lower your current interest rate by 0.75% or more.

Fannie Mae Refi Plus or Freddie Mac Relief

We also provide refinancing through Fannie Mae Refi Plus or Freddie Mac Relief. These programs allow the borrower to finance up to 125% of the current market value/appraised value of their home. Only first lien mortgages can be refinanced in this program. If you recently bought a home with little or nothing down, and your home has depreciated in value, this program is made for you. Another reason to refinance with these programs? All closing costs can be rolled in.

Texas Home Equity Refinance

In the state of Texas, according to the Texas Constitution, a borrower can only borrow up to 80% of the current market value/appraised value if they are using any of the funds for “cash in hand.” (Cash in hand includes paying off debt such as auto loan balances, credit card debt, and note loans). If you have a large amount of equity in your home, this program allows you to take advantage of the equity, and receive cash for up to 80% of the appraised value, minus any first lien payoffs. For example, if you currently owe $150,000 on your home, which is valued at $300,000, your new home equity loan could be up to $240,000.

For more information on these programs, Contact us today. If there is a program you do not see on this list, let us know and we will inquire about that program for you.

FHA/VA Loans

Your life doesn’t fit into a box. So why should your mortgage program?

FHA Loans

The Federal Housing Administration (FHA) insures mortgages, making it easier for families to purchase a home. The FHA helps to make home buying during a recession easier by offering incentives such as lower down payment requirements than conventional loans, and lower MI costs. The FHA does allow for the seller to pay up to 6% of the purchase price toward the closing costs.

Blue Star Residential Lending offers the following programs under FHA:

• FHA 203 (b) – This loan represents the standard FHA purchase. Borrowers pay 3.5% down. Terms available are 30, 20, and 15-year fixed, along with 3 and 5-year ARM.
• FHA $100 Down – If you are buying a home that is a HUD REO (Repossession from original borrower), the home may be eligible for this program. $100 down is all that is needed, but the buyer is responsible for closing costs.
• FHA 234 (c) – This type of loan is an FHA Purchase Loan for condominiums. Make sure the Condo Complex is FHA-Approved before securing an FHA 234 (c) loan.
• FHA 203 (k) – FHA purchase loans are used for single-family residences (houses or town homes), and allow the buyer to also roll in the cost of repairs needed for the home.
• FHA Streamline Refinance – For refinancing your FHA loan, there’s nothing simpler than using an FHA Streamline Refinance. A streamline refinance has lower document needs, and makes an FHA refinance faster and easier to accomplish.
• FHA Refinance of Conventional – If you are in a conventional loan with 3% equity, you can refinance as an FHA loan. This would most likely lower your interest rate and lower your monthly MI.

VA Loans

A Veterans Administration (VA) loan can be used to help American servicemen or women and/or their spouses secure financing for a mortgage purchase. You can check with the Veterans Administration (through its website or through other information exchanges) to find out whether you are eligible, given your service history. Only service members who have received honorable discharges and who have served 90 days or more may qualify for VA loans.

VA Purchase – A VA Purchase offers 100% financing, available for veterans only. 4% of the allowable seller contribution may go toward closing costs. 30-year and 15-year fixed terms are available for VA Purchases.

VA Streamline Refinance – For refinancing your VA loan, it could not be easier than securing a VA Streamline Refinance. A streamline refinance has lower document needs, and makes a VA refinance faster and easier to accomplish.

For further questions on government-insured programs, Contact us today. If there is a program you do not see on this list, let us know and we will inquire about that program for you.

USDA Rural Loan

The Home of Your Dreams, Within Your Means.

USDA Rural The USDA Rural program is a hidden gem of the financing world. It is the last program (excepting VA) that allows for 100% financing, and a 6% seller contribution. With a USDA Rural loan, the borrower actually has the ability to get into a home for zero down. The interest rates are extremely competitive.

The USDA Rural Program was created to promote growth in smaller towns outside of big cities. If you are interested in buying a home in the near future, and would like to see if prospective towns and cities qualify, send us an email, and we’ll look it up for you.

Eligibility for this program is two-fold. Your property must be in an approved USDA Rural area, and your income must be below certain limits. Drop us an email, with your income amount, number of household members who will occupy the property, and county of relocation, and we can provide you with the income limits for that county.

USDA Rural Purchase 100% Financing is available for a USDA Rural Purchase, with 30-year fixed terms, and up to a 6% seller contribution. Up-front MI can be rolled into the loan.

USDA Rural Refinance

If you are currently residing in a USDA Rural property, you can refinance the property and stay within the Rural USDA program. This can be very beneficial, because if your equity is between 0 and 20%, you still will have no Monthly MI. 30-Year fixed terms are available for this refinance.

These programs are proof that the 100% financing dream is still alive and well. For more information on our loan programs, Contact us today. If there is a program you do not see on this list, let us know and we will inquire about that program for you.

Jumbo Loan

Your life doesn’t fit into a box. So why should your mortgage program?

umbo / Super Jumbo Purchase

Blue Star Residential Lending, Inc. is one of the leaders in Texas for jumbo financing. Our rates are some of the most competitive in the market today, and we have many options available for buyers of Jumbo ($647,000 – $999,999) and Super Jumbo ($1,000,000 – $3,000,000) properties.

Below are some program highlights:

• Loans up to $3,000,000
• 90% LTV to $625,000
• 80% LTV to 1,000,000
• Fixed Rate terms are available for 30, 20, and 15-year programs; or ARM for 3, 5, 7 and 10-year programs.

Jumbo Refinance/Conversion

Blue Star Residential Lending is proud to announce its Jumbo Conversion Program. This program is designed to break up a current jumbo/super jumbo loan ($1,147,000 or below) into two separate pieces. The first lien note is at $647,000, and you have the option of a 30, 25, 20, 15, or 10-year fixed rate, or a 3, 5, or 7-year ARM. The second lien note is available up to $500k, on a HELOC (Home Equity line of Credit) program, with an extremely low interest rate.
Email us today for more information on our Jumbo Conversion Program.

Super Jumbo Refinance

We have the lowest refinance rates available on super jumbo properties. Loan amounts range from $1,000,000 to $3,000,000. Programs available are 30 and 15-year fixed rates and 3, 5, 7, and 0-year ARMs.
We still have Super Jumbo Rates below 5.0%

Jumbo Home Loan

We give home lending decisions back to their rightful owner — you.

Let us know how we can help with your Super Jumbo Refinance. For more information on our loan programs, Contact Us today. If there is a program you do not see on this list, let us know and we will inquire about that program for you.

Second Mortgage

What you don’t know about mortgage lending — could help you.

We have your Second Mortgages covered. We have second liens available for purchase funds, home improvements, pool loans, and home equity.

Purchase Money Second Mortgages

If you want to avoid PMI on a conventional loan, but don’t have the needed 20% down, this is a great way to solve your problem. Purchase Money Second Mortgages provide up to 15% LTV for the 2nd lien (to combine with 80% for the first mortgage). These programs are offered through a Simultaneous Closing with the 1st Mortgage. A 680 minimum credit score is required to qualify for this program, and 15-year, 20-year, and 30/15 balloon programs are available.

Home Improvement/Pool Loans

Home Improvement/Pool Loans are available for up to 95% CLTV (Current 1st mortgage + new 2nd mortgage) of your improved home. This accounts for the current appraised value of the home, + .5 of the cost of improvements. For example, if your home appraises as-is for $300,000, and you’re installing a $50,000 pool, then new appraised value for your home is $325,000. A 680 minimum credit score is required to qualify for this program, and funds are given directly to the builder/contractor. 15-year, 20-year, and 30/15 balloon programs are available.

Home Equity 2nd liens

We offer Home Equity second liens for up to 80% of the current as-is appraised value. Cash is given directly to the borrower, and a 660 minimum credit score is required.

We give home lending decisions back to their rightful owner — you.

Let us help you start digging for that pool! For more information on our loan programs, Contact us today. If there is a program you do not see on this list, let us know and we will inquire about that program for you.