Loan Options

Conventional Fixed-Rate (30, 25, 20, 15, 10 year terms)

A conventional mortgage is a loan that is not insured by the federal government or FHA. A conventional mortgage sticks to the guidelines set by Fannie Mae and Freddie Mac, the largest purchaser of residential mortgages. The maximum limit for a conforming loan depends on your county and can be found on Fannie Mae’s website: Fannie Mae Loan Limits (https://www.fanniemae.com/singlefamily/loan-limits)

Fixed-rate mortgages have a set interest rate for the entire length of the term, which can be between 10 and 30 years.

Conventional Adjustable-Rate (5/1, 7/1, 10/1)

A conventional loan may have an Adjustable-Rate—this is typically used by investors or homeowners who have short-term goals they want met. The adjustable-rate mortgage (ARM) allows for a lower introductory rate than a fixed-rate, followed by periodic adjustments tied to a specific index, like LIBOR or T-Bill. Our rates are fixed for either 5, 7, or 10 years, granting homeowners a bit more time in accomplishing their goals without fear of rate adjustment.

FHA Loans (Fixed, Adjustable, Purchase, Streamline, Cash-out)

The Federal Housing Administration (FHA) insures mortgage lenders against potential losses that may occur from borrower-default. Because the loans are insured, the guidelines are less strict and allow for more opportunities to homeowners.

Waiting Period Chart

• Foreclosure- 7 years (conventional) 3 years (FHA)
• Short Sale- 4 years (conventional) 3 years (FHA)
• Bankruptcy- 4 years (conventional) 2 years (FHA)

The minimum down payment required for a purchase through FHA is 3.5%, and financing is available for borrowers with credit scores as low as 500. FHA loans are also eligible for future Streamline refinances—these are rate reductions offered to the borrower at no-cost in favorable markets.

Cash-out requirements for FHA loans allow the borrower to liquidate up to 85% of his available equity—the maximum allowed for conventional loans is only 80%.

To off-set the risk and additional benefits awarded to them, FHA borrowers pay a monthly private mortgage insurance (PMI) along with their regular monthly payment. This insurance ranges depending on the term and length of the loan, but for most borrowers is .85% of their loan amount.

Reverse Mortgage (Home Equity Conversion Mortgage)

A Reverse Mortgage is a loan program available only to homeowners aged 62 years or older. It allows for the conversion of part of their equity into cash. Instead of making monthly payments to a lender, the lender makes payments directly to the borrower through the home’s equity.

Options are available for monthly payments or a lump-sum payment. There are no restrictions on how proceeds can be used and the borrower is not required to pay back the loan until the home is sold or vacated. As long as the borrower lives in the home, you’re not required to pay the loan back—upon death, the borrower’s family or trust may reclaim the home by making financial arrangements with the lender.

VA Loans

A VA (Veterans Affairs) loan is guaranteed by the government and is designed to offer affordable financing to eligible American veterans. Combining the benefits of other loan programs, VA loans traditionally offer lower interest rates than conventional loans, as well as provide borrowers the ability to cash-out 100% of their home’s equity without penalty.

Interest Rate Reduction Refinancing Loan (IRRRL) is a streamline of an existing VA loan—costs and fees are reduced, allowing borrowers to take advantage of favorable markets.

HARP / DU Refi Plus

The Home Affordable Refinance Program (HARP) is a program available to homeowners with little to no equity in their homes and who are current on their payments. If the mortgage is owned by Fannie Mae or Freddie Mac and originated before May 31, 2009, you may qualify for this interest rate reduction program. There is no minimum credit score requirement and closing costs are minimized.

JUMBO / Non-Owner Occupied, Investment, Second Homes

There are a variety of financing options available to homeowners looking to refinance or purchase a higher balance or Jumbo loan. Also, investment properties and second homes are also eligible for competitive rates and programs.

Interest Only Mortgages

A mortgage is called “interest only” when its monthly payment does not include the repayment of principal for a certain period of time.

Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)

Hybrid ARM mortgages, also called fixed-period ARMs, combine features of both fixed-rate and adjustable-rate mortgages.

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* By refinancing an existing loan, the consumer's
finance charges may be higher over the life of the loan.