Loan Programs
Loan programs that include many unique options not offered by other lenders.
Take time to read some of the different types we offer.
Unique Programs for Every Scenario.
As a Hybrid Lender, we offer unique programs that major lenders and brokers in the wholesale channel can’t access. With our Affiliate Flat Fee (AFF) program, you’ll have the ability to utilize many of these programs across wholesale, non-delegated, and delegated channels.
In the sections below, we’ll briefly introduce each program. Your dedicated recruiter or Account Executive (AE) can provide further details tailored to your specific needs.
At our core, we believe in collaboration and support, striving to help each other succeed. Our primary goal is simple: to close loans efficiently and help individuals achieve the dream of homeownership.
First, we want to give a brief diescription of what each channel is and the benefits of each channel.
CHANNELS
Obsidian offers three seperate channels for our various Loan Programs.These are Described in the Tabs Below
In this channel, OFS operates as the direct lender, handling everything from disclosures, processing, underwriting, and Closing Disclosure (CD) to closing documents and post-closing. With this program, we can close loans in as little as 8 days while maintaining direct communication with underwriting. We’re able to approve loans that major lenders often reject—such as when UWM declines a loan due to a 52% DTI, we can still close it. We boast a 97% closing ratio once a loan reaches underwriting.
For FHA products, we are a direct seller with no overlays, allowing us to close many loans that others turn down. Most importantly, there are no restrictions on your compensation. Like the non-delegated channel, this program offers greater earning potential for you.
- With this channel, you gain more flexibility. Similar to the wholesale channel, you can choose your preferred lender. From there, OFS will handle disclosures, issue the Closing Disclosure (CD), and draw the necessary documents. One key advantage is that there’s no cap on compensation since, technically, we act as the lender. This means you can work with your favorite lenders and receive compensation through both Borrower-Paid (BP) and Lender-Paid (LP) models. You have the potential to earn up to 500 basis points (BPS), with your loan officer receiving their full compensation.
- This channel is highly popular, offering access to over 100 investors and more than 300 products to help your clients achieve their homeownership goals. However, there are some drawbacks to consider. The underwriting process can take longer, and you have limited control over disclosures, underwriting, issuing the Closing Disclosure (CD), and scheduling closings—all of which are managed by the investor you select.
Additionally, you won’t be able to receive compensation on both Borrower-Paid (BP) and Lender-Paid (LP) models. You’re often locked into a lower compensation plan, capped at 275 basis points (BPS), a restriction that is strictly enforced by the lenders.
PROGRAMS EXPLAINED
With a fixed-rate mortgage, your interest rate and monthly payments remain stable for the life of the loan. This provides peace of mind, knowing your rate won’t rise with market fluctuations. If market rates drop, you may even have the opportunity to refinance and lower your payments. Fixed-rate mortgages are available in a variety of term lengths, from 10 to 30 years.
To qualify for a conventional mortgage, you'll need to show sufficient income, a strong credit history, and stable employment. Borrowers must meet strict ratio requirements, making it necessary to qualify under more rigorous terms.
- Wholesale-Available with all lenders.
- Non-Delegated-Select lender, check with recruiter or AE.
- Delegated-Available, we can close loans that otherwise are turned down by major investors.
Jumbo loan provides financing up to $5 million, making it ideal for purchasing luxury or high-cost homes. Whether you're upgrading your lifestyle or investing in property, a jumbo loan offers the flexibility to achieve your goals.
The term "jumbo loan" refers to loans that exceed conventional lending limits—the maximum loan amount that Fannie Mae and Freddie Mac will purchase in the secondary market. Like conventional mortgages, jumbo loans are available as either fixed-rate or adjustable-rate mortgages (ARMs), each offering unique benefits depending on how long you plan to stay in the home. For instance, a jumbo ARM may be more advantageous if you plan to live in the home for a shorter period, while a jumbo fixed-rate mortgage may be preferable for long-term residence.
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An FHA home loan is a government-backed mortgage program offered by lenders like Obsidian Financial Services that provides financial flexibility when buying a home. With features like low down payments and other benefits, FHA loans are insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD). If you're a first-time homebuyer, an FHA loan might be the perfect solution. One advantage is that a non-occupant, such as a parent or relative, can co-sign the loan with you. Plus, your down payment can be as low as 3.5% of the purchase price.
- Ideal for young professionals, new couples, or single parents.
- Small Business Owners: Tailored for entrepreneurs with fewer than 500 employees.
- 1099 Workers: Designed for self-employed individuals and independent contractors.
- Fluctuating Income: Perfect for workers with non-traditional income streams, such as tips.
- Recent College Graduates: Graduates recently entering the workforce.
- Life Transitions: Individuals undergoing significant life changes, such as divorce or relocation.
Delegated Channel — This program is exclusively offered through this channel, with maximum compensation set at 100 BPS (LP) and 250 BPS (BP), for a total of 300 BPS. This distinctive offering will undoubtedly attract real estate professionals from all corners of the market, elevating your stature in the industry.
A VA mortgage loan is a home financing option guaranteed by the U.S. Department of Veterans Affairs (VA). While the VA does not directly provide the loan funds, their guaranty allows lenders like Obsidian to extend more favorable terms to eligible Veterans, Active-Duty Military members, and other qualified individuals. Unlike many loan programs, there is no first-time homebuyer requirement, and the VA benefit can be reused. One of the most significant advantages of a VA loan is that it typically requires no down payment, making it an excellent option for eligible borrowers seeking to purchase a home or refinance an existing mortgage.
Eligibility for a VA Mortgage Loan
To qualify for a VA mortgage, you must meet specific criteria related to your military service. A Certificate of Eligibility (COE) is no longer required. Veterans, this can be documented through Form DD-214 (discharge papers), while Active-Duty Military members must provide a statement of service. CrossCountry Mortgage can assist in obtaining your COE.
Active-Duty Military members generally qualify after 90 consecutive days of service. Veterans, Reserve members, and National Guard members have different eligibility requirements, which vary depending on when they served, though a minimum of 90 days of active service is typically required. Additionally, certain Surviving Spouses of Veterans or military personnel may qualify. A dishonorable discharge disqualifies individuals from VA loan eligibility.
Additional Qualifications for a VA Mortgage Loan
In addition to meeting service requirements, borrowers must also satisfy credit, income, and asset criteria. The VA guaranty reduces risk for lenders, making it easier to qualify with lower credit scores and more flexible debt-to-income ratios compared to conventional loans.
Key Benefits of a VA Mortgage Loan
VA loans offer numerous advantages over conventional financing, including:
- No down payment requirement (as long as the purchase price does not exceed the appraised value).
- No mortgage insurance (MI) is required.
- No appraisal required for VA Interest Rate Reduction Refinance Loans (IRRRL).
- Closing costs are limited by VA regulations and may be covered by the seller.
- No prepayment penalties if the loan is paid off early.
- VA assistance is available if you experience difficulty making payments.
- Certain Surviving Spouses may qualify for a VA loan.
Understanding the VA Funding Fee
While VA loans do not require mortgage insurance, there is a one-time VA funding fee that supports the loan program. This fee can either be paid at closing or rolled into the loan amount. Some borrowers are exempt from the fee, including Veterans with service-related disabilities, Surviving Spouses, and Active-Duty Military recipients of the Purple Heart.
Eligible Property Types for VA Loans
VA loans can be used to finance homes that the borrower will personally occupy or plans to occupy within 60 days of closing. Eligible property types include:
- Single-family homes
- 2–4 unit properties
- VA-approved condominiums
- Manufactured homes on permanent foundations
How to Apply for a VA Mortgage Loan
To apply for a VA mortgage loan, follow these steps:
- Contact an Obsidian loan originator to discuss your VA loan eligibility.
- If purchasing, apply for pre-approval to determine your borrowing capacity.
- Gather necessary financial documents as advised by your loan originator.
- Work with your real estate agent to find the perfect home.
- Complete your loan application and proceed with the closing process.
Types of VA Mortgage Loans
While there are several VA loan programs, the most common options include:
- Purchase Loan: Offers up to 100% financing, meaning no down payment is required if the purchase price is at or below the appraised value. Sellers can contribute up to 4% of the purchase price toward closing costs. A VA-approved appraiser will determine the property’s value and ensure it meets the VA’s Minimum Property Requirements (MPRs) for safety and habitability.
- Cash-Out Refinance: Allows borrowers to tap into their home equity for cash or refinance from a non-VA loan to a VA loan. Funds from a cash-out refinance can be used for various purposes, such as consolidating high-interest debt, funding home improvements, or covering educational expenses. Appraisals are typically required.
- Interest Rate Reduction Refinance Loan (IRRRL): Commonly referred to as a VA streamline refinance, this loan is designed to refinance an existing VA loan to secure a lower interest rate or reduce monthly payments. Appraisals are generally not required, and there are specific guidelines to ensure that the borrower benefits from the refinance, unless transitioning from an adjustable-rate mortgage (ARM) or shortening the loan term.
Eligibility & Platform
To qualify for a VA l mortgage, you'll need to show sufficient income, a strong credit history, and stable employment. Borrowers must meet strict ratio requirements, making it necessary to qualify under more rigorous terms.
- Wholesale-Available with all lenders.
- Non-Delegated-Select lender, check with recruiter or AE
- Delegated-Available, we can close loans that otherwise are turned down by major investors.
Non-QM Loan Requirements: What You Need to Know
Millions of prospective homeowners and property investors who do not meet the stringent criteria for conventional financing turn to Non-Qualified Mortgage (Non-QM) providers each year to purchase or refinance properties. While Non-QM loans do have specific qualifying requirements, the parameters differ from traditional mortgages and can vary significantly depending on the type of Non-QM loan in question.
Among the most prominent Non-QM products are personal and business bank statement loans, as well as Debt Service Coverage Ratio (DSCR) loans. These alternatives offer unique pathways to homeownership or investment that traditional mortgages may not accommodate.
Bank Statement Loans
Bank statement loans are tailored for individuals seeking to purchase a primary residence, a secondary home, or an investment property. Loan amounts vary across lenders but can reach up to $3 million. This loan type is particularly advantageous for self-employed individuals who may not have traditional income documentation like a W2 form.
DSCR Loans
DSCR loans are primarily designed for property investors acquiring income-generating rental properties. These loans base the borrower's ability to repay on the property's projected rental income rather than the borrower’s personal income. Loan amounts may reach as high as $2 million, and certain lenders can expedite closing within 15 days, providing a competitive edge in highly sought-after markets.
Additionally, there are other Non-QM products such as Asset Utilization loans, which cater to high-net-worth individuals who leverage their substantial assets to qualify. However, for the purposes of this overview, we will focus on bank statement and DSCR loans.
Bank Statement Loans for Personal and Business Use
Bank statement loans are a popular alternative for individuals who are self-employed or receive non-traditional income. Unlike conventional mortgages that rely on W2 forms to verify income, Non-QM lenders utilize 12 to 24 months of personal or business bank statements to assess the borrower’s cash flow and determine loan affordability.
To qualify, the borrower must present a consistent and verifiable stream of income. The lender’s underwriting team carefully evaluates these statements to analyze the borrower’s financial health and repayment capacity.
Credit Scores and Credit History
Non-QM loans, unlike traditional mortgages backed by Freddie Mac or Fannie Mae, do not follow the same rigid credit requirements. Nevertheless, borrowers must demonstrate an adequate level of creditworthiness, though Non-QM lenders offer more flexibility in their evaluation.
Credit scores for Non-QM loans can be as low as 620, with other loan terms such as interest rates and maximum loan amounts adjusted based on the borrower’s credit profile. While a blemished credit history or previous housing difficulties, such as missed mortgage or rent payments, may not disqualify a borrower, lenders may impose specific "seasoning" requirements to ensure the borrower has re-established a consistent repayment history over time.
The Importance of Debt-to-Income Ratio (DTI)
Many borrowers assume that credit score is the primary factor in determining mortgage eligibility; however, debt-to-income ratio (DTI) is equally critical in evaluating an applicant's ability to manage monthly payments. DTI measures the proportion of the borrower’s monthly debt obligations relative to their income, factoring in liabilities such as student loans, auto loans, and credit card balances. Non-QM providers typically permit a DTI ratio up to 50%.
Down Payment Requirements for Non-QM Loans
Similar to conventional mortgages, Non-QM loans require a down payment, though the amount varies according to the borrower’s qualifications. Generally, individuals with higher credit scores (720 and above) may qualify for loans with as little as 10% down, allowing the lender to finance up to 90% of the property value. Borrowers with lower credit scores (closer to 620) may be required to contribute a down payment of up to 25%, with the lender financing the remaining 75%.
DSCR Loans for Property Investors
DSCR loans present a distinct option for real estate investors by evaluating the income potential of the property rather than the borrower’s personal earnings. For instance, an investor purchasing a multi-family property with rental income totaling $5,600 per month must demonstrate that the property's income covers at least 75% of the monthly mortgage payment.
Credit and Down Payment Requirements for DSCR Loans
Though no personal income verification is required, borrowers must meet credit score thresholds—typically a minimum of 640—to qualify for a DSCR loan. The loan-to-value (LTV) ratio for DSCR loans is often capped at 80%, meaning the borrower must contribute a down payment of at least 20%.
Additional Considerations for Non-QM Borrowers
The Non-QM mortgage market was established to serve borrowers who are underserved by traditional lending institutions. While Non-QM lenders are held to responsible lending standards and must meet the criteria set by the private investors backing their loans, these lenders have greater latitude when it comes to underwriting. This allows for more lenient terms and common-sense exceptions on a case-by-case basis, whether for a home purchase or refinance.
To streamline the process, it is essential for borrowers to be well-prepared when applying for a Non-QM loan. Working with an experienced Non-QM loan officer can be invaluable, as they can guide applicants through the process, liaise directly with lenders, and ensure a timely and efficient application process.
Eligibility & Platform
To qualify for a VA l mortgage, you'll need to show sufficient income, a strong credit history, and stable employment. Borrowers must meet strict ratio requirements, making it necessary to qualify under more rigorous terms.
- Wholesale-Available with all lenders.
- Non-Delegated-Select lender, check with recruiter or AE
- Delegated-Available, we can close loans that otherwise are turned down by major investors.
An ARM could be the ideal option if you’re planning to live in the home for a shorter time. ARMs offer an initial fixed-rate period, typically available in 3/1, 5/1, 7/1, and 10/1 configurations. The first number indicates how many years your rate remains fixed, while the second shows how often the rate can adjust after the fixed period ends (in these cases, once per year).
While rates may rise or fall during the adjustment periods, you can set caps to protect against significant increases in your payments.
Subproducts: There are many programs that are derived from the conventional loan through Fannie Mae and Freddie Mac.
There are Home Ready for low down payments, Home Possible with the same low-down payments along with DPA’s to help people with little money down to help get into homes.
With a jumbo fixed-rate mortgage, your interest rate and monthly payments remain constant throughout the life of the loan. This protects you from market rate increases and gives you the option to refinance if rates drop. These mortgages are available in various term lengths, typically
A jumbo ARM offers the potential to save money, especially if you're not planning to stay in the home long-term. However, there’s a risk that your payments could rise if market rates increase during the adjustment periods. Fortunately, caps are available to limit rate and payment changes.
- Periodic cap: Limits how much your rate can adjust at each adjustment date.
- Lifetime cap: Limits the total rate increase over the life of the loan.
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To qualify for a conventional mortgage, you'll need to show sufficient income, a strong credit history, and stable employment. Borrowers must meet strict ratio requirements, making it necessary to qualify under more rigorous terms.
- Wholesale-Available with select lenders please check with your Recruiter or AE.
- Non-Delegated-Select lender, check with recruiter or AE check with you Recruiter or AE.
- Delegated-Not available under this channel.
Eligible Borrowers: When applying for an FHA loan, our underwriters will review your income, assets, liabilities, and credit history. Don’t worry if your credit isn’t perfect—FHA loans are more flexible in this regard. To qualify, you’ll need to meet the following criteria:
- A down payment of at least 3.5%.
- Your total monthly mortgage payment must not exceed 30% of your gross monthly income.
- Consistent employment for at least two consecutive years with verifiable income.
Eligible Properties: An FHA loan can be used to purchase or refinance:
- A family home with 1–4 units.
- A condominium unit.
- A manufactured home on a permanent foundation.
Obsidian Financial Services is an FHA-approved lender that operates independently of HUD/FHA and the federal government. Our guidelines remain unchanged, and we have NO OVERLAYS, which enables us to close more loans than lenders like UWM, Rocket, and others. Additionally, we offer greater flexibility, giving us a competitive edge over retail lenders.
If you’re currently with lenders like Supreme, Fairway, or AFN, it might be time to consider switching to a lender that offers better pricing and a higher loan closing rate.
FHA Unique loans no other lender is doing-these loans that are only offered by Obsidian Financial Services.
Our exclusive program is meticulously designed to provide you with an accelerated path to homeownership, offering a strategic advantage in securing your future. When assessing eligibility, we prioritize your potential rather than your financial history, as we firmly believe that homeownership should be within reach for everyone. This innovative program, developed by Obsidian Financial, is crafted to assist individuals in making their first steps toward owning a home.
- 3 months of bank statements
- 3.5% down payment — funds must be verifiable.
- 5% seller contributions to closing costs.
That’s all you need to close these transactions. Technically, you’re positioned as a renter until you can refinance into a more traditional loan your borrower qualifies for. This program has saved countless files, including loans that didn’t meet the criteria for P&L, Bank Statement, and ITIN loans. It’s a game-changing solution that will elevate your reputation with realtors, builders, and other home sales professionals. This is truly an exclusive, one-of-a-kind program, only available through Obsidian Financial! Visit Our Earned Equity Website and Watch Our Explainer Video.
FHA also offers the 203(k) home loan, ideal for buyers looking to finance repairs or renovations. The 203(k) loan comes in two options:
- Limited: Finance up to $100,000 for eligible home improvements.
- Standard: Finance a minimum of $2,000 with no maximum limit, allowing for more extensive structural repairs, subject to appraisal requirements.
Eligibility & Platform
To qualify for a conventional mortgage, you'll need to show sufficient income, a strong credit history, and stable employment. Borrowers must meet strict ratio requirements, making it necessary to qualify under more rigorous terms.
- Wholesale-Available with all lenders. EEP and VOE not available.
- Non-Delegated-Select lender, check with recruiter or AE. EEP and VOE not available.
- Delegated-Available, we can close loans that otherwise are turned down by major investors.
A USDA rural home loan, administered by the U.S. Department of Agriculture (USDA), provides rural homeowners with up to 100% financing, along with a range of additional benefits. Whether you are looking to purchase, build, renovate, repair, or even relocate, a USDA loan through CrossCountry Mortgage can make the dream of homeownership a reality.
Designed to extend homeownership to rural residents, the USDA loan program aims to improve the economic landscape and enhance the quality of life in rural America. The program was created to assist low- to very-low-income individuals in acquiring safe, sanitary housing in USDA-eligible rural or farmland areas. A key feature of this program is its payment assistance mechanism, which temporarily reduces mortgage payments based on the applicant's adjusted family income. This subsidy increases the applicant’s ability to repay the loan, further incentivizing rural homeownership.
How Does the USDA Home Loan Program Work?
The USDA home loan program follows specific guidelines to ensure applicants meet the eligibility criteria:
- Income limits are determined by the USDA and vary based on the region in which the home is being purchased.
- Loan underwriters will evaluate the applicant's gross income, as well as the income of any co-applicants or other adults living in the household.
- A thorough analysis of the applicant's financial background is conducted, with particular attention to the applicant’s income stability.
- Applicants must provide at least two years of IRS tax filings, while self-employed individuals may need to submit three years of returns to demonstrate consistent income.
The primary requirement for securing a USDA mortgage is a demonstrable history of steady income. This stability reassures lenders of the applicant's ability to meet repayment obligations.
Background and History of USDA Home Loans
The involvement of the U.S. Department of Agriculture in rural housing programs can be traced back to the New Deal era and efforts initiated during the 1930s and 1940s. The USDA mortgage program was established to enhance the standard of living for rural communities and to provide a path to homeownership for those residing in rural America. In the early 20th century, many rural homes lacked basic utilities like indoor plumbing and electricity, and rural poverty was widespread.
The foundation for USDA home loans was laid with the passage of the U.S. Housing Act of 1949, which sought to ensure that all Americans had access to "decent homes and suitable living environments." Before this, the USDA’s role in housing primarily involved financing on-farm housing. However, the scope of the program expanded to encompass non-farm rural financing, eventually becoming a cornerstone of USDA housing initiatives.
The Housing Act of 1949, enacted in the post-World War II era, sought to address the shortage of adequate housing and improve living conditions across the United States. This legislation set the stage for what would become the USDA home loan program, with Title 1 of the Act establishing the framework for the USDA’s direct responsibility in providing funding to rural housing programs.
Eligibility & Platform
To qualify for a VA l mortgage, you'll need to show sufficient income, a strong credit history, and stable employment. Borrowers must meet strict ratio requirements, making it necessary to qualify under more rigorous terms.
- Wholesale-Available with all lenders.
- Non-Delegated-Select lender, check with recruiter or AE.
- Delegated-Not available.