Loans and Terms constantly change with economic conditions, but the following is a summary of many of the types of loan offerings in existence.
|Conventional||A type of mortgage not obtained under a government insured program. This loan is secured by investors. Generally, you may obtain a Conventional Mortgage up to 97% Loan to Value.
Mortgage Insurance may be required if your Loan to Value is in excess of 80%.
|VA||A type of mortgage that is secured by the government for people that have served in the armed forces.
Requires VA Funding Fee of 1.5-3.0% to be paid. This fee can be rolled in to the loan amount or paid up front.
Up to 100% Loan to Value
|FHA||A mortgage that is secured by the Federal Housing Administration under HUD.
An Upfront Mortgage Insurance Premium is required in the amount of 1.75% of the loan amount which is rolled into the loan. Monthly Mortgage Insurance is also required in the amount of .55%-1.35% (based on LTV) of the loan amount annually.
Up to 96.5% Loan to Value or 100% w/ the simultaneous use of a gift program.
|Adjustable Rate||A program where the interest rate is generally fixed for a certain period (1, 3, 5, 7, 10 years) and then can adjust every month, 6 months, or year.|
|Fixed Rate||A program where the interest rate is fixed for the entire life of the loan.|
|Balloon Payment||A program where the loan is typically amortized over 30 years but is due and payable at the end of a certain term, generally 5 or 7 years. When the loan is due and payable, the term may be extended or rolled over in to a different program.|
|Graduated Payment||A program where the monthly payments start at a lower rate than standard fixed rate loans and increase by a pre-determined amount each year.|
|Community Homebuyer’s||A first time homebuyer program with a fixed rate and low down payment requirement ($500 – 5%). There are no cash reserve requirements and qualifying ratios are easier than FHA loans. The buyer must complete a home-buyer training class.|
|Reduced Documentation||This is a conventional loan program where the borrowers are not required to document their income, assets or even employment for a slightly higher interest rate.
These programs are few and far between, but they ARE still available up to limited Loan to Values – 60-70%.