Loan Programs

A conventional mortgage loan is a type of home loan that is not insured or guaranteed by a government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, these loans are provided by private lenders and are typically sold to government-sponsored enterprises like Fannie Mae or Freddie Mac.

Types of Conventional Loans:

Fixed-Rate Mortgages: These loans have a fixed interest rate for the entire term, providing predictable monthly payments.

Adjustable-Rate Mortgages (ARMs): These loans have an interest rate that may change periodically based on market conditions, which can lead to lower initial payments but potential increases over time.

Conventional loans typically require a down payment, which can range from as low as 3% to 20% or more of the home’s purchase price. A down payment of 20% or more can help avoid Private Mortgage Insurance (PMI).

Conventional loans have specific loan limits set by the Federal Housing Finance Agency (FHFA). These limits can vary by location and are generally higher than those for government-insured loans.

A conventional mortgage loan is a popular choice for many homebuyers due to its flexibility, potential for higher loan amounts, and faster approval process. It’s an excellent option for those with a strong credit history and the ability to make a substantial down payment.

An Adjustable Rate Mortgage (ARM) is a type of home loan where the interest rate can change over time based on market conditions. This means that your monthly payments may vary throughout the life of the loan. An Adjustable Rate Mortgage can be a great option for borrowers who are comfortable with some level of risk and are looking for lower initial payments. It’s important to consider your long-term plans and financial situation when deciding if an ARM is right for you.

Initial Fixed Rate Period: Most ARMs start with a fixed interest rate for a specific period, which can range from 1 to 10 years. During this time, your monthly payments remain stable and predictable.

Adjustment Period: After the initial fixed period, the interest rate adjusts periodically (usually annually) based on a specific index plus a margin. This means your payments can increase or decrease depending on market conditions.

Rate Caps: ARMs typically have rate caps that limit how much the interest rate can increase at each adjustment and over the life of the loan. This helps protect you from significant payment increases.

Potential for Lower Initial Payments: Because ARMs often start with lower initial rates compared to fixed-rate mortgages, they can provide lower monthly payments at the beginning of the loan term.

Flexibility: If you plan to move or refinance before the adjustable period begins, you may benefit from the lower initial rates without experiencing the adjustments.

Considerations:
Potential Savings: If interest rates remain stable or decrease, you could save money on interest over the life of the loan.

Payment Uncertainty: After the initial fixed period, your payments may increase, which can make budgeting more challenging.

Market Dependency: Your interest rate is tied to market conditions, so if rates rise, your payments will too.

An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA), making it a popular choice for first-time homebuyers and those with less-than-perfect credit. The FHA provides this insurance to lenders, which helps them offer more favorable terms to borrowers.

Lower Down Payment: One of the most attractive features of an FHA loan is the low down payment requirement. Borrowers can put down as little as 3.5% of the home’s purchase price, making homeownership more accessible.

Flexible Credit Requirements: FHA loans are designed to help those with lower credit scores qualify for a mortgage. Borrowers with credit scores as low as 580 can qualify for the 3.5% down payment option, while those with scores between 500 and 579 may still qualify with a 10% down payment.

Mortgage Insurance: FHA loans require both an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance premiums (MIP). This insurance protects the lender in case of default. The UFMIP can be rolled into the loan amount.

Loan Limits: FHA loans have specific limits on the amount that can be borrowed, which vary by location. These limits are generally lower than those for conventional loans, making them suitable for more modestly priced homes.

Streamlined Refinancing: Existing FHA borrowers can take advantage of streamlined refinancing options, which allow them to refinance with less documentation and potentially lower their monthly payments.

Property Requirements: The property must meet certain safety and livability standards set by the FHA. This ensures that the home is a safe and suitable place to live.

A VA loan is a mortgage option specifically designed for eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. These loans are backed by the U.S. Department of Veterans Affairs (VA), making them a great choice for those who have served in the military. With no down payment, no PMI, and competitive interest rates, VA loans provide a pathway to homeownership that honors the service and sacrifices of our military personnel.

Key Features:

No Down Payment: One of the most significant benefits of a VA loan is that it often requires no down payment, allowing eligible borrowers to finance 100% of the home’s purchase price.

No Private Mortgage Insurance (PMI): Unlike many conventional loans, VA loans do not require PMI, which can save borrowers a significant amount of money each month.

Competitive Interest Rates: VA loans typically offer lower interest rates compared to conventional loans, making monthly payments more affordable.

Flexible Credit Requirements: The VA does not set a minimum credit score, but lenders may have their own requirements. This flexibility can help those with less-than-perfect credit qualify for a mortgage.

Funding Fee: While VA loans do not require PMI, they do have a one-time funding fee that helps offset the cost of the program. This fee can be rolled into the loan amount and varies based on the borrower’s military service and down payment amount.

Loan Limits: VA loans have specific limits on the amount that can be borrowed without a down payment. However, eligible borrowers can often exceed these limits with a down payment.

A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are designed for borrowers looking to finance high-value properties. Here’s what you need to know:

Loan Amounts: Jumbo loans are typically used for properties that have a purchase price above the conforming loan limits, which can vary by location. For example, in many areas, the limit is around $647,200, but it can be higher in high-cost areas.

Interest Rates: Interest rates on jumbo loans may be slightly higher than those for conforming loans. This is because they represent a greater risk to lenders, as they are not backed by government-sponsored entities like Fannie Mae or Freddie Mac.

Down Payment Requirements: Jumbo loans often require a larger down payment compared to conventional loans. While some lenders may allow down payments as low as 10%, many prefer 20% or more to mitigate risk.

Credit Score: A strong credit score is essential for qualifying for a jumbo loan. Lenders typically look for a minimum credit score of 700, and higher scores may be required in certain scenarios, such as for non-owner-occupied homes.

Considerations:

Flexible Terms: Many lenders offer various loan terms, including fixed-rate and adjustable-rate options, allowing you to choose what best fits your financial situation.

Higher Costs: Be prepared for potentially higher interest rates and larger down payments.

Stricter Underwriting: The approval process for jumbo loans can be more stringent, requiring thorough documentation of income, assets, and creditworthiness.

A 203(k) loan is a type of FHA loan that allows homebuyers to finance both the purchase of a home and the cost of its renovations in a single mortgage.

A 203(k) loan is a fantastic option for buyers looking to purchase a home that needs repairs or renovations. It combines the costs of buying and fixing up a property into one manageable loan. This program is ideal for those looking to buy a fixer-upper or make significant improvements to an existing property.. 

Types of 203(k) Loans:

Standard 203(k): This is for homes that need extensive repairs or renovations. It requires the use of a 203(k) consultant to oversee the project.

Limited 203(k): This is for minor repairs and improvements, with a maximum renovation cost of $35,000. It does not require a consultant.

Eligible Properties: The 203(k) loan can be used for various property types, including single-family homes, multi-family homes (up to four units), and certain FHA-approved condominiums. The property must be at least one year old.

Loan Amounts: The loan amount is based on the purchase price of the home plus the estimated cost of repairs. The total renovation costs must be at least $5,000.

Renovation Costs: Eligible renovation costs can include structural repairs, modernization, and improvements to the home’s functionality. This can cover everything from kitchen remodels to roof replacements.

Appraisal Process: An appraisal is required to determine the “as completed” value of the property after renovations. This helps ensure that the loan amount aligns with the expected value of the home post-renovation.

Considerations:

Timeframe: Renovations must begin within 30 days of closing and be completed within six months.

Consultant Requirement: For Standard 203(k) loans, hiring a consultant is mandatory, which may add to the overall cost.

A USDA loan is a government-backed mortgage program designed to help low to moderate-income individuals or families purchase homes in rural areas. This program is offered by the United States Department of Agriculture (USDA) and provides several benefits for eligible borrowers. 

Support for Rural Development: These loans help promote economic growth in rural areas by making homeownership accessible.

Eligibility:

Location: USDA loans are intended for properties located in designated rural areas. You can check if a property is eligible using the USDA eligibility map.

Income Limits: Borrowers must meet specific income requirements, which vary by location and family size. Generally, the household income should not exceed 115% of the median income for the area.

Types of USDA Loans:

USDA Guaranteed Loans: These loans are issued by approved lenders and backed by the USDA. They require no down payment and have competitive interest rates.

USDA Direct Loans: These loans are issued directly by the USDA to low-income applicants. They offer lower interest rates and may include subsidies to reduce monthly payments.

No Down Payment: One of the most significant advantages of USDA loans is that they require no down payment, making homeownership more accessible for those who may not have substantial savings.

Low Mortgage Insurance: USDA loans have lower mortgage insurance costs compared to FHA loans. This can result in lower monthly payments for borrowers.

Fixed Interest Rates: USDA loans typically offer fixed interest rates, providing stability in monthly payments over the life of the loan.

Property Requirements: The property must be used as the borrower’s primary residence and meet certain safety and livability standards. It should also be located in an eligible rural area.

Why a HARP Loan?

If you’re underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal, and without having to pay mortgage insurance.

Our HARP Loan Rates Are Low & Our Process is Quick & Painless

The Home Affordable Refinance Program (HARP) is a federal program of the United States, set up by the Federal Housing Finance Agency in March 2009, to help underwater and near-underwater homeowners refinance their mortgages.

We’re here to make the HARP loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our HARP Loan Qualifier

We’ll help you clearly see differences between HARP loan options, allowing you to choose the right one for you.

A reverse mortgage is a special type of home loan that allows homeowners, typically aged 62 and older, to convert a portion of their home equity into cash. This can be a great financial tool for seniors looking to supplement their retirement income. Here’s what you need to know:

How It Works: With a reverse mortgage, instead of making monthly payments to a lender, the lender pays you. The loan amount is based on the equity in your home, your age, and current interest rates. You can receive the funds as a lump sum, monthly payments, or a line of credit, depending on your needs.

Eligibility: To qualify for a reverse mortgage, you must be at least 62 years old, own your home outright or have a low mortgage balance, and live in the home as your primary residence. 

You must also meet certain financial requirements, including the ability to pay property taxes, homeowners insurance, and maintenance costs.

No Monthly Payments: One of the most significant benefits of a reverse mortgage is that you do not have to make monthly mortgage payments. The loan is repaid when you sell the home, move out, or pass away.

Home Ownership: You retain ownership of your home while you have a reverse mortgage. You are still responsible for property taxes, insurance, and maintenance.

Loan Repayment: The loan must be repaid when the borrower sells the home, moves out, or passes away. If the home is sold, any remaining equity after the loan is paid off goes to the homeowner or their heirs.

Types of Reverse Mortgages:

Home Equity Conversion Mortgage (HECM): This is the most common type of reverse mortgage and is insured by the FHA.

Proprietary Reverse Mortgages: These are private loans not insured by the government and may offer higher loan amounts.

Considerations:

Impact on Inheritance: A reverse mortgage can reduce the amount of equity available for heirs.

Costs and Fees: There are costs associated with obtaining a reverse mortgage, including origination fees, closing costs, and mortgage insurance premiums.

A reverse mortgage can be a valuable financial tool for seniors looking to access their home equity without the burden of monthly payments. It’s essential to understand the terms and implications, so consulting with a financial advisor or mortgage professional is recommended.

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<<< (A) At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to the person and the person may need to sell or transfer the property to repay the proceeds of the reverse mortgage from the proceeds of the sale or transfer or the person must otherwise repay the reverse mortgage with interest from the person’s other assets. (B) The lender will charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which the lender will add to the balance of the reverse mortgage loan. (C) The balance of the reverse mortgage loan grows over time and the lender charges interest on the outstanding loan balance. (D) The person retains title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may subject the property to a tax lien or other encumbrance or to possible foreclosure. (E) Interest on a reverse mortgage is not deductible from the person’s income tax return until the person repays all or part of the reverse mortgage loan.>>>