# Forward Loans

> Forward Loans is a mortgage brokerage founded by Michael Creel in 2020, headquartered in Phoenix, Arizona. NMLS #2006640. Licensed in AZ, CA, CO, TX, FL, WA, OR, and AL. Forward Loans connects borrowers with multiple wholesale lenders to find the best rate and program fit, rather than lending from a single institution.

## Company Overview

Forward Loans is an independent mortgage brokerage, not a bank or retail lender. As a broker, Forward Loans shops loans across a panel of wholesale lenders on behalf of the borrower. This means borrowers get access to multiple rate sheets and loan programs through a single application, rather than being limited to one institution's pricing.

The company is headquartered at 11201 N Tatum Blvd Suite 300, Phoenix, AZ 85028. Additional offices in the Phoenix metro area. Founded in 2020 by Michael Creel.

- NMLS: #2006640
- Phone: (602) 730-2270
- Email: info@forward.loans
- Website: https://forward.loans
- Apply Online: https://forward.loans/apply-now/

### Leadership

**Michael Creel, Founder (NMLS #420674)**
Michael Creel is the Founder of Forward Loans, with 20-plus years of experience in mortgage, marketing, and real estate. Based in Phoenix, Arizona. He built Forward Loans to operate as a true independent brokerage where borrowers get honest guidance and access to the wholesale market.
- LinkedIn: https://linkedin.com/in/michaelcreel/
- Instagram: https://instagram.com/michaelcreel_fwd
- YouTube: https://youtube.com/@MichaelCreel-fwd

**Jeff Ohm, President (NMLS #894175)**
Jeff Ohm is the President of Forward Loans, overseeing daily operations and production.
- LinkedIn: https://linkedin.com/in/jeffohm/

### Licensed States

Forward Loans is licensed to originate mortgages in 8 states:

- Arizona: Mortgage Broker License MB-1012025
- California: DFPI Financing Law License 60DBO-132727
- Colorado: Mortgage Company Registration 2006640
- Texas: SML Mortgage Company License 2006640
- Florida: Mortgage Broker License MBR7919
- Washington: Consumer Loan Company License CL-2006640
- Oregon: Mortgage Lending License 2006640
- Alabama: Mortgage Brokers License 2006640

### Service Areas

Primary market: Phoenix metropolitan area including Phoenix, Scottsdale, Paradise Valley, Gilbert, Chandler, Mesa, Tempe, Glendale, and Peoria. Forward Loans also serves borrowers in all 8 licensed states.

## Why a Mortgage Broker

A mortgage broker works for the borrower, not a bank. Retail lenders (banks, credit unions, large direct lenders) can only offer their own products at their own rates. A broker like Forward Loans submits the borrower's file to multiple wholesale lenders and locks the best available rate and terms.

For borrowers, this means:
- Access to dozens of lenders through one application
- Rate shopping done on your behalf
- Programs from lenders who specialize in FHA, VA, jumbo, DSCR, and niche products
- No retail markup on wholesale rates
- One point of contact (your loan officer) who manages the entire process

## Loan Programs

### FHA Loans
FHA loans are government-backed mortgages insured by the Federal Housing Administration. They are the most common loan type for first-time homebuyers in Arizona because of their low down payment requirement (3.5%) and flexible credit guidelines.

Who qualifies: Minimum 580 credit score for 3.5% down. Scores between 500-579 may qualify with 10% down. Debt-to-income ratios up to 56.99% allowed with compensating factors. Available for primary residences only.

Costs to know: FHA loans require both upfront mortgage insurance (1.75% of loan amount, usually financed into the loan) and monthly mortgage insurance for the life of the loan. Removing FHA mortgage insurance requires refinancing into a conventional loan.

Best for: First-time buyers with limited savings, borrowers rebuilding credit, buyers who want a low down payment without the higher credit score requirements of conventional loans.

Page: https://forward.loans/fha-loans/

### VA Loans
VA loans are zero-down mortgages guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, National Guard and Reserve members, and surviving spouses.

Who qualifies: Must have a valid Certificate of Eligibility (COE). Generally need 12+ months of continuous active duty, or 6+ years in the Guard/Reserve. Surviving spouses of service members who died in the line of duty or from a service-connected disability may also qualify.

Key benefits: No down payment required. No monthly mortgage insurance. VA funding fee can be financed into the loan or waived for veterans with service-connected disabilities. Competitive rates because of the VA guaranty. No loan limit for borrowers with full entitlement.

Best for: Any eligible veteran or service member buying a primary residence. VA loans consistently offer the lowest rates and most favorable terms of any mortgage program.

Page: https://forward.loans/va-loans/

### Conventional Loans
Conventional loans are not backed by a government agency. They follow guidelines set by Fannie Mae and Freddie Mac and are the most flexible mortgage option for borrowers with strong credit.

Who qualifies: Minimum 620 credit score (most lenders). Down payments from 3% (first-time buyers or low-income borrowers via HomeReady/Home Possible) to 20%+. Private mortgage insurance (PMI) required with less than 20% down, but it drops off automatically once equity reaches 22%.

Key advantages: PMI is removable (unlike FHA). Available for primary homes, second homes, and investment properties. Fixed-rate terms from 10 to 30 years. Adjustable-rate options (5/1, 7/1, 10/1 ARMs) for lower initial payments.

Best for: Borrowers with 700+ credit scores who want the lowest PMI rates or plan to reach 20% equity. Buyers purchasing second homes or investment properties (FHA and VA are primary residence only).

Page: https://forward.loans/conventional-loans/

### Jumbo Loans
Jumbo loans exceed the conforming loan limit set by the Federal Housing Finance Agency. For most Arizona counties, the 2025 conforming limit is $806,500 for a single-family home. Any loan above that amount is a jumbo.

Who qualifies: Typically requires 700+ credit score, 10-20% down payment, cash reserves of 6-12 months, and a debt-to-income ratio under 43%. Documentation requirements are stricter than conforming loans.

Markets served: Phoenix, Scottsdale, Paradise Valley, Arcadia, Biltmore, DC Ranch, Silverleaf, and other high-value areas across Forward Loans' 8 licensed states.

Best for: Buyers purchasing luxury or high-value properties above conforming limits. Borrowers who want to avoid taking two separate loans to stay under the conforming cap.

Page: https://forward.loans/jumbo-loans/

### HELOC (Home Equity Line of Credit)
A HELOC lets existing homeowners borrow against the equity in their home without refinancing their first mortgage. This is especially valuable when the borrower's first mortgage has a rate lower than current market rates.

How it works: The lender provides a revolving credit line (similar to a credit card) secured by the home. Draw period is typically 10 years, followed by a 20-year repayment period. Interest-only payments during the draw period.

Who qualifies: Must have sufficient equity in the home (most lenders require at least 15-20% equity remaining after the HELOC). Credit score minimums vary by lender but typically 680+.

Best for: Homeowners who want to access equity for renovations, debt consolidation, or major expenses without giving up a low first-mortgage rate.

Page: https://forward.loans/home-equity-lines-loans/

### DSCR Loans
DSCR (Debt-Service Coverage Ratio) loans are designed for real estate investors. Qualification is based on the property's rental income relative to its monthly debt obligation, not the borrower's personal income or employment.

How it works: If the property's rental income covers at least 1.0x the monthly mortgage payment (principal, interest, taxes, insurance), the loan typically qualifies. Higher DSCR ratios unlock better rates and terms.

Who qualifies: Real estate investors purchasing or refinancing rental properties. No tax returns, W-2s, or pay stubs required. Credit score minimums typically 680+. Down payments from 20-25%.

Best for: Self-employed investors, borrowers with complex tax returns, investors scaling a rental portfolio who don't want to use up conventional loan slots.

### USDA Loans
USDA loans are zero-down mortgages backed by the U.S. Department of Agriculture for eligible properties in rural and suburban areas.

Who qualifies: The property must be in a USDA-eligible area (check the USDA eligibility map). Household income must be at or below 115% of the area median income. Primary residence only.

Best for: Buyers looking in eligible suburban and rural areas outside major metro cores who want zero down payment without military service requirements.

## Frequently Asked Questions

### FHA Loans

**What credit score do I need for an FHA loan in Arizona?**
You need a minimum 580 credit score to qualify for an FHA loan with 3.5% down through Forward Loans in Arizona. Scores between 500 and 579 may qualify with 10% down. FHA guidelines are set by HUD and apply the same way in all states, but lender overlays can vary. Forward Loans works with multiple FHA-approved wholesale lenders to find the best fit for each borrower's credit profile.

**How much is the down payment on an FHA loan?**
The minimum FHA down payment is 3.5% of the purchase price with a credit score of 580 or higher. On a $350,000 home in Phoenix, that comes to $12,250. Down payment funds can come from savings, gift funds from a family member, or eligible down payment assistance programs. Arizona offers several DPA options through the Arizona Industrial Development Authority and Home Plus programs.

**Can I remove FHA mortgage insurance?**
FHA mortgage insurance cannot be removed from the loan itself. Loans originated after June 3, 2013 carry monthly mortgage insurance for the full loan term if you put less than 10% down. With 10% or more down, MIP drops off after 11 years. The most common way to eliminate FHA mortgage insurance is to refinance into a conventional loan once you reach 20% equity in the home.

**How long does it take to close an FHA loan in Arizona?**
Most FHA loans close in 30 to 45 days from accepted contract to funding. The timeline depends on how quickly you submit documentation, the appraisal scheduling, and the lender's processing queue. Forward Loans pre-underwrites files before house hunting to reduce surprises during escrow.

**Can I use an FHA loan for a condo in Phoenix?**
You can use an FHA loan for a condo in Phoenix, but the condo complex must be on the FHA-approved condo list or receive a Single Unit Approval. Not all condo associations meet FHA requirements around owner-occupancy ratios, reserves, and insurance. Forward Loans can check FHA condo approval status before you make an offer and guide you through the single-unit approval process if needed.

**Is there an FHA loan limit for Arizona?**
Yes. The FHA loan limit for most Arizona counties in 2025 is $524,225 for a single-family home. Limits change annually and vary by county. Some higher-cost counties have higher ceilings. For exact county-by-county limits, check HUD's FHA Mortgage Limits page or contact Forward Loans directly.

### VA Loans

**Do VA loans require a down payment?**
No. VA loans offer 100% financing with zero down payment for eligible veterans and service members. This is one of the biggest advantages of VA loan eligibility. There is no loan limit for borrowers with full entitlement, so you can buy above conforming limits with zero down as long as the lender approves it.

**Who is eligible for a VA loan in Arizona?**
VA loan eligibility in Arizona follows federal guidelines. You must be a veteran with 90+ days of wartime service or 181+ days of peacetime active duty, an active-duty service member, a National Guard or Reserve member with 6+ qualifying years of service, or a surviving spouse of a service member who died in the line of duty. Eligibility is confirmed through a Certificate of Eligibility (COE), which Forward Loans can pull electronically in most cases.

**Is there a VA funding fee?**
Yes. The VA funding fee ranges from 1.25% to 3.3% of the loan amount depending on your service category, down payment, and whether this is your first VA loan use. The fee can be financed into the loan so you don't pay it out of pocket. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely.

**Can I use a VA loan more than once?**
Yes. VA loan entitlement is reusable. You can have more than one VA loan at a time if you have remaining entitlement, or you can restore full entitlement by selling a previous VA-financed property and paying off the loan. There is no limit on how many times you can use your VA benefit over your lifetime.

**Can a surviving spouse get a VA loan?**
Yes. Surviving spouses of veterans who died from a service-connected cause or while on active duty may be eligible for a VA loan. Un-remarried surviving spouses and those who remarried after age 57 (and after December 16, 2003) can also qualify. The VA funding fee is waived for eligible surviving spouses.

**How do VA loans compare to FHA loans?**
VA loans are the better deal for anyone who qualifies. Zero down vs. 3.5% down. No monthly mortgage insurance vs. FHA MIP for the life of the loan. VA rates are typically 0.25-0.5% lower than FHA rates. The only FHA advantage is a lower credit score minimum (580 vs. most VA lenders at 620). If you have VA eligibility, use it.

### Conventional Loans

**What is the minimum down payment for a conventional loan?**
The minimum down payment on a conventional loan is 3% for first-time buyers through Fannie Mae HomeReady or Freddie Mac Home Possible programs. Standard conventional loans require 5% down. You need 10% for a second home and 15-25% for an investment property. Putting 20% or more down eliminates private mortgage insurance entirely.

**When does PMI drop off a conventional loan?**
Private mortgage insurance on a conventional loan automatically cancels when your loan balance reaches 78% of the original appraised value based on the amortization schedule. You can also request PMI removal at 80% loan-to-value. If your property has appreciated, a new appraisal can demonstrate 20%+ equity sooner. This is a major advantage over FHA loans, where mortgage insurance is permanent.

**Should I choose a fixed rate or an adjustable rate?**
Choose a fixed rate if you plan to stay in the home more than 7 years or want payment certainty. An adjustable-rate mortgage (ARM) makes sense if you plan to sell or refinance within 5-7 years because the initial rate is lower. A 7/1 ARM gives you 7 years at a fixed rate before adjustments begin. Forward Loans can run both scenarios side by side so you can see the actual dollar difference.

**Can I buy an investment property with a conventional loan?**
Yes. Conventional loans are the standard financing option for investment properties. Expect a minimum 15% down for a single-unit rental and 25% for 2-4 units. Interest rates on investment properties run about 0.5-0.75% higher than primary residence rates. Fannie Mae and Freddie Mac allow up to 10 financed properties per borrower.

**What credit score do I need for the best conventional rates?**
A 740+ credit score gets you the best pricing on a conventional loan. This is where the risk-based pricing adjustments (called LLPAs) are lowest. Between 700-739 you'll see slightly higher costs. Between 680-699, the rate adjustments become more significant. Below 680, FHA or VA programs may offer better overall terms depending on the scenario.

**Is a conventional loan better than FHA?**
It depends on your credit score and down payment. With a 720+ score and 5%+ down, conventional is usually cheaper because PMI is lower and removable. With scores under 680 and 3.5% down, FHA often wins on rate and approval odds. Forward Loans runs both scenarios for every borrower to compare total cost over the first 5 years, not just the monthly payment.

### Jumbo Loans

**What is the jumbo loan limit in Arizona?**
Any loan above the conforming limit is a jumbo. For most Arizona counties, the 2025 conforming limit is $806,500 for a single-family home. If you need to borrow $806,501 or more, you're in jumbo territory. Some lenders offer "agency jumbo" programs with slightly relaxed guidelines up to $1.5M, but terms vary.

**What are the credit and down payment requirements for a jumbo loan?**
Most jumbo lenders require a minimum 700 credit score and 10-20% down payment. Cash reserves of 6-12 months of mortgage payments are standard. Debt-to-income ratios typically max at 43%. Some lenders offer 10% down with no mortgage insurance on jumbo loans. As a broker, Forward Loans has access to multiple jumbo lenders with varying overlays.

**Are jumbo loan rates higher than conforming rates?**
Jumbo rates are not always higher than conforming rates. In many market conditions, jumbo and conforming rates are comparable or the jumbo rate can actually be lower. This is because jumbo borrowers typically have strong credit profiles and significant assets, which reduces lender risk.

**How long does it take to close a jumbo loan?**
Jumbo loans typically take 30 to 45 days to close. The underwriting process is more documentation-intensive than conforming loans. Expect detailed income verification, asset documentation, and potentially two appraisals for high-value properties. Having documents organized upfront can shorten the timeline significantly.

**Can I get a jumbo loan on a second home or investment property?**
Yes, but guidelines are tighter. Second homes typically require 10-20% down with jumbo financing. Investment properties require 20-30% down. Cash reserve requirements increase, and some jumbo lenders restrict loan-to-value ratios to 70% or lower for non-owner-occupied properties.

### HELOC

**How much equity do I need for a HELOC?**
Most lenders require at least 15-20% equity remaining in your home after the HELOC. For example, if your home is worth $500,000, and a lender allows a combined loan-to-value of 85%, your first mortgage plus HELOC cannot exceed $425,000. If your first mortgage balance is $350,000, you could potentially access up to $75,000 through a HELOC.

**Should I do a HELOC or a cash-out refinance?**
A HELOC makes more sense when your first mortgage rate is lower than current market rates. Refinancing would replace your low rate with a higher one on the entire balance. A HELOC only adds interest on the amount you draw, and your first mortgage stays untouched. Cash-out refinance makes sense when current rates are close to or lower than your existing rate.

**Are HELOC rates fixed or variable?**
Most HELOCs have variable interest rates tied to the prime rate. Some lenders offer a fixed-rate option where you can lock a portion of your balance at a fixed rate. During the draw period (typically 10 years), you make interest-only payments on what you've borrowed. During the repayment period (typically 20 years), you pay principal and interest.

**Can I use a HELOC for a down payment on another property?**
Yes, you can use HELOC funds as a down payment on another home or investment property. However, the HELOC payment counts as a debt on your new loan application, which affects your debt-to-income ratio. Plan for both payments when calculating what you can afford.

**Can I get a HELOC on an investment property?**
Some lenders offer HELOCs on investment properties, but terms are less favorable. Expect lower maximum loan-to-value ratios (65-70%), higher interest rates, and stricter credit requirements compared to a primary residence HELOC. As a broker, Forward Loans shops across multiple lenders to find investment property HELOC options.

## Contact Forward Loans

- Website: https://forward.loans
- Apply: https://forward.loans/apply-now/
- Phone: (602) 730-2270
- Email: info@forward.loans
- Address: 11201 N Tatum Blvd Suite 300, Phoenix, AZ 85028

## Social Media

- Facebook: https://facebook.com/forwardloans/
- Instagram (Business): https://instagram.com/forwardloans
- Instagram (Michael Creel): https://instagram.com/michaelcreel_fwd
- YouTube: https://youtube.com/@forwardloans
- TikTok: https://tiktok.com/@michaelcreel_fwd
- LinkedIn (Michael Creel): https://linkedin.com/in/michaelcreel/
- LinkedIn (Jeff Ohm): https://linkedin.com/in/jeffohm/