There are so many programs to choose from, let us help you weigh all your options to find the best fit for your financial situation.
Fixed VS. Adjustable Rate Loans
All Loans Fall into one of these 3 Categories
Fixed Rate
• Has the same interest rate throughout the entire life of the loan
Adjustable Rate
• Has an interest rate which will change from time to time. This is most commonly referred to as an ARMs Loan
Hybrid Loan
• Has a low introductory fixed rate for a period of time then the rate begins to adjust.
Weather its a 10, 15, 20 year or the most popular- 30 year fixed rate loan, our trusted lenders can discuss your options so you can choose which loan best fits your financial situation.
Government Insured VS. Conventional Loan
FHA
• Government insure program from the Department of Housing and Urban Development (HUD) . These loans are available to borrowers across the board which allows for a down payment as low as 3.5% of the homes purchase price. Although through this program the down payment is less than a conventional loan, you will also be required to pay for mortgage insurance which will increase the amount of your monthly mortgage payment.
VA Loan
• Commonly a loan offered to qualified active duty military or veterans and their families. Usually requires no down payment as borrowers receiver 100% financing of the full loan amount.
USDA / RHS Loan
• This is a program offered to individuals with credit score hiccups, cannot acquire a substantial down payment, or who are unable to acquire conventional financing with a steady, low or modest income. Borrowers who chose this loan option must meet certain income guidelines and the home being purchased must be located in an eligible rural area as defined by the United States Department of Agriculture.
Conventional Loan
• Strictly an agreement between a Bank and the Loan Applicant and is not backed by the Federal government . This loan type usually requires a larger down payment of at least 10% - 30% as well as a higher favorable credit score.
Conforming VS. Jumbo
Which category you fall under depends on the 'size' of your loan
Conforming Loans
• is one that meets underwriting guidelines set by Fannie Mae and Freddie Mac as they buy and sell loans or mortgage backed securities (MBS) from lenders.
• The name says it all, this refers to a loan amount which exceeds the limits established by Fannie Mae and Freddie Mac. As this is a large sum loan, it carries a higher risk for the lender thus requiring a larger down payment from the borrower and exceptional credit score.
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