Our home mortgage loan products
Whether you’re refinancing, purchasing a new home, or considering a reverse mortgage, we can help you navigate the home mortgage loan options to find your way home.
Older Americans often hold onto their homes as a nest egg in case they need extra money. But when that time arrives, how do you make use of that home value?
One option is to sell the house and move. There is another option that
would allow you to continue to live in your home—tapping the stored
value of your home with a loan. Home equity is the difference between
the appraised value of your home and what you owe on any mortgages.
A reverse mortgage can allow you to convert some of that home equity
into cash so that you can stay at home.
Using the equity in your home can seem like a good idea. But is it right
for you? It is a decision you should consider carefully, because your
house may be your most valuable financial asset.
Click here to review Use Your Home to Stay at Home© – The official reverse mortgage consumer booklet approved by the U.S. Department of Housing & Urban Development – to help with your decision.
REAL ESTATE AGENTS
Click here to review our Reverse Mortgage Took Kit
– a guide to writing reverse mortgage contracts
There are two basic types of Conventional Loans, Conforming and Non-Conforming
A conventional loan/conventional mortgage is any type of home buyer’s loan that is not offered or secured by a government entity. Instead, conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage companies. However, some conventional mortgages, called conforming loans, can be guaranteed by two government-sponsored entities; the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). The lending requirement most used for conforming loans is a lending limit. If the home you want to purchase is higher than the lending limit set in your area by the Federal Housing Finance Agency (FHFA), you will not be able to get a conventional conforming loan backed by Fannie Mae/Freddie Mac.
Conventional mortgages typically have a fixed rate of interest, which means that the interest rate does not change throughout the life of the loan. Conventional mortgages or loans are not guaranteed by the federal government and as a result, typically have stricter lending requirements by banks and creditors.
In the current lending climate, with very good credit, there are loans that have down payments as low as 3% of the purchase price plus the closing costs. Also, there is no upfront Mortgage Insurance fee, which is typically 1.75% of the loan amount for FHA loans.
FHA loans have been helping people become homeowners since 1934. The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so lenders can offer you a better deal, which includes the following benefits:
- Low down payments
- Low closing costs
- Easy credit qualifying
Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit properties.
Financial help for seniors
Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer “yes” to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
Want to make your home more energy efficient?
You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
Financing for Active or Retired Military Personal
With a VA-backed home loan, the U.S. government guarantees (or stands behind) a portion of the loan you get from a private lender. If your VA-backed home loan goes into foreclosure, the guaranty allows the lender to recover some or all of their losses. Since there’s less risk for the lender, they’re more likely to give you the loan under better terms. In fact, nearly 90% of all VA-backed home loans are made without a down payment.
Lenders follow VA standards when making VA-backed home loans. They may also require you to meet additional standards before giving you a loan. These standards may include having a high enough credit score or getting an updated home appraisal (an expert’s estimate of the value of your home).
The refinance of a current home mortgage comes in several forms:
- The Rate and Term Mortgage is a type of loan that can, in effect, lower the interest rate on your current mortgage, or it can combine a 1st and a 2nd mortgage where the 2nd is a Home Equity, perhaps used to do home improvements.
- The Refinance Mortgage can include normal closing costs such as escrow and lender fees, thus reducing out of pocket costs, with up to $2,000 cash back at close.
Refinancing and Home Equity Line of Credit
Getting a new mortgage to replace the original is called refinancing. Refinancing is done to allow a borrower to obtain a better interest term and rate. The first loan is paid off, allowing the second loan to be created, instead of simply making a new mortgage and throwing out the original mortgage. For borrowers with a perfect credit history, refinancing can be a good way to convert a variable loan rate to a fixed, and obtain a lower interest rate. Borrowers with less than perfect, or even bad credit, or too much debt, refinancing can be risky.
Home Equity Line of Credit
A home equity line of credit is a type of revolving credit in which the home is used as collateral. Because the home is more likely to be the largest asset of a customer, many homeowners use their home equity for major items such as home improvements, education, or medical bills rather than day-to-day expenses.
With a home equity line of credit, the borrower is allowed to borrow a specific amount of credit. However, there is a credit limit that the lender sets by taking a certain percentage of the home’s appraised value and subtracting it from the existing mortgage’s balance.