While it is increasingly likely the Fannie Mae and Freddie Mac conservatorships are nearing some sort of end, the question is whether their conforming product boxes will be expanded as a result.
The demand for products
Some fall within categories are already in existence, like those that support down payment assistance, which enables government-sponsored enterprise lending. But elsewhere lenders are looking to serve a niche group not being addressed by current offerings.
Recently, reverse mortgage lender
The following is another roundup of unique financing announcements:
Driving business through mortgage promotions
The offer is coming out at a time when mortgage rates are at their lowest in 11 months, according to Freddie Mac.
Customers nationwide can lock in their discounted refinancing rate during this period. Those discounts will vary by mortgage product and location, Chase said.
In addition, this rate promotion is stackable with other discounts Chase Home Lending offers to consumers, such as its relationship pricing to deposit or wealth management account holders that offers up to 1% off their rate.
Nontraditional property financing
Paranova Property Buyers, headquartered in Little Rock, Arkansas, has started an in-house finance program to help families unable to qualify for a mortgage.
"Our mission has always been to create win-win solutions," said Andrew Yu, the company's founder, in a press release. "By offering in-house financing on properties we own, we're helping families who feel shut out by banks move into quality homes while keeping the process simple and transparent."
The consumer purchases a property owned by Paranova using a "manageable" down payment. It specializes in helping homeowners navigate difficult situations, running from foreclosure to probate.
"Everyone deserves a fair chance at homeownership," Yu said. "We see this as an opportunity to help families put down roots while maintaining a dependable, transparent path for sellers and buyers alike."
Crypto assets in underwriting
LendFriend Mortgage of Austin, Texas, is the latest to bring to market
Borrowers can use Bitcoin, Ethereum or other digital assets to qualify for a home loan and not have to sell or pledge their holdings.
It does so through
This product is particularly relevant for early crypto adopters and investors who want to avoid triggering capital gains and the related taxes by having to liquidate their Bitcoin or Ethereum holdings.
It is available in California, Colorado, Florida and Texas.
The latest in non-qualified mortgage offerings
In August, the company
"By adding investment properties, we're helping our partners close more loans and giving their clients the freedom to think bigger — whether it's buying a luxury home or expanding a real estate portfolio," said Max Slyusarchuk, its CEO, in a press release.
Program features include:
- FICO scores starting at 660
- Up to an 89.99% combined loan-to-value ratio
- Loan amounts up to $3.5 million
- A debt-to-income ratio up to 50%
- Unlimited ability to do a cash-out refinance
- Besides investment properties, the product can be used for primary and second residences.
- Reserves are based on automated underwriting findings
Pennymac is putting several non-QM offerings on its correspondent lender menu, effective Sept. 22.This includes a debt service coverage ratio mortgage. Another product is designed for creditworthy borrowers (A+, A, A-) who have non-traditional income profiles, such as self-employed professionals or entrepreneurs.
"Our non-QM offerings are about unlocking opportunities for our Pennymac Correspondent clients and the borrowers they serve," said Alex Boand, chief correspondent production officer. "The non-QM space continues to grow, and we're excited to offer a competitive, high-quality product line to meet demand among our clients."
Pennymac intends to retain servicing on all non-QM products. These will also be made available through Pennymac TPO in the fourth quarter.
American Pride Bank's APB Wholesale is bringing out APB Solutions, a suite of non-QM products which includes offerings for investors and foreign nations.
Loan amounts range from $125,000 to $3 million with LTVs up to 90%. It offers flexible documentation requirements.
"Whether it's a DSCR loan for a first-time investor, a P&L-only option for an entrepreneur, or a foreign national loan for a second home, we've designed this product suite to help brokers win deals that other lenders won't even look at," said Jessica Bluj, president of the Atlanta-based bank's mortgage division.
Easy Street Capital increased its residential transition loan program to $5 million per unit from the prior $2 million. This product can be used for both single-family and multifamily loans.
Besides the larger loan size, a no appraisal option for qualifying mortgages is available. Interest rates start at 8.9%.
Separately, Easy Street Capital announced increased leverage terms for experienced builders. Effective immediately, qualified borrowers with three or more deals of experience can access up to 90% loan-to-cost and 75% LTV through their EasyBuild loan program. This is an increase from the previous limits of 85% LTC and 70% LTV.
Products that help with down payment assistance
Click n' Close, an Addison, Texas-based wholesale and correspondent lender,
The new offering is called SmartBuy 5/1 ARM Down Payment Assistance. It combines an ARM first with a repayable second lien product which can be applied to the down payment, closing costs, prepaids (which are any upfront payments a borrower might make towards homeowners' insurance, property taxes, interest and/or escrow deposits) or rate buydowns.
It permits builders and their lending partners to give buyers more approachable monthly payments and lower upfront barriers, Click n' Close said.
Total Mortgage has brought its closing cost assistance program, Lease to Keys, to market. It provides up to $2,500 to first-time buyers.
"The Lease to Keys initiative reflects our focus on making homeownership more accessible for those buying a home for the first time by easing the financial transition for renters," Christopher Affinito, chief revenue officer, said.
Once the buyer obtains a mortgage pre-approval, the next step is to provide records of their current rent obligation. If approved, they receive a credit equal to one month's rent, up to the $2,500 limit.
Texas lender
HELP provides a grant of up to 2% of purchase price up to $5,000; but the buyer must contribute at least 1% toward the down payment. First-time buyers meeting a 50% area median income test may also qualify for an additional $2,500.
But because it is a grant, the borrower does not need to repay the funds; for tax purposes, they get a Form 1099.
Meanwhile, the Federal Home Loan Bank of San Francisco has given out $10 million to 200 first-time home buyers in 2025 Middle-Income Downpayment Assistance Program grants via 55 members who are located in Arizona, California and Nevada.
This is the third year of the program. This year's grants were fully reserved in the two weeks after it launched in March.
Eligible buyers can over 80% and up to 140% of the AMI; they need to complete a counseling course and contribute a minimum of $10,000 towards the down payment.
So far the program has provided $40 million in DPA to 818 first-time buyers.
