Most Common Financing Options We Offer
VA Loans
This year the VA Home Loan program will receive $6 Billion in funding. However, less than 10% of the individuals who are eligible for a VA Home Loan use their benefits. Since the government subsidizes your home loan, it eliminates the need for mortgage insurance saving you money each month. Plus, there is no down payment required when purchasing a home with a VA Loan. This can lead to a variety of benefits, such as affording a larger home. It is also easier to qualify for a VA Loan compared to a conventional loan since the credit and income standards are not as strict. Contact us for more details and to see if you qualify.
FHA Loans
FHA loans have been helping people become homeowners since 1934. How? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal. If you're buying your first home, FHA might be just what you need. Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
Want a fixer-upper? FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.
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.
How about manufactured housing or mobile homes? Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are - or will be - located in mobile home parks.
USDA Loans
Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.
Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy. Contact us for more details and to see if you qualify.
Conventional Loans
A conventional loan is basically any kind of lender agreement that's not backed in full by the Veterans Administration or protected by the FHA (the Federal Housing Administration). All told, there are several broad categories of conventional loans. Fixed rate mortgages are simpler in some cases. A home borrower “locks in” at an interest rate, and he or she pays down the principal and interest on the mortgage every month at that rate.
Other so-called conventional loans include conforming loans. Basically, these are arrangements that meet stipulations set forth by Fannie Mae and or Freddie Mac, two very large mortgage trading companies.
While Fannie Mea and Freddie Mac don't actually approve or disapprove of loans, they buy and sell mortgages. Lenders enjoy signing borrowers up with conforming loan, since they can later sell these loans to Fannie Mea or Freddie Mac to get funds for other investments.
Nonconforming loans -- instruments which don't meet Fannie Mae or Freddie Mac qualifications -- are also considered conventional. Another category of loans, jumbo loans, falls outside of Fannie Mae eligibility but is also considered conventional. A jumbo loan is a loan that's too large to be eligible to be traded by the two main loan purchasers.
Current Fannie Mae guidelines for conventional homes put the maximum price for a conventional, conforming loan at just over $415,000 for a single-family arrangement. If you live outside of the 48 contiguous United States (in Guam, Hawaii, or Alaska), you may qualify for a larger loan limit.
What determines the rate for your conforming loan? First and foremost, the kind of loan you want will impact pricing both in the short-term and in the long-term. Lenders will also look at how much funds you have to close, your credit history, and your employment history. Finally, the financial details of your final arrangement will be intimately tied up with the location of your property and the kind of home you purchase or build.
Double Wide Loans
While manufactured homes are becomeing more and more conventional, financing one still can be unconventional. In financing, the key is the word "mobile." The less mobile a manufactured home is, the better the financing deal a consumer can get.
Historically, manufactured homes have been financed as personal property, resulting in personal loans that often require a 10 percent down payment, with the remainder financed over 10 to 15 years. Interest rates are higher than mortgages, resembling the rates charged on car and boat loans. However, whether the loan is called a mortgage or not, if it is used to secure your principal home, the interest paid is generally tax-deductible.
Though these loans still are the most common, the changes in the industry have attracted additional lenders and types of loans. Many manufactured homes now require only 5 percent down and finance the remainder over 20 to 30 years. If the home is immobile and if the owner of the home also owns the underlying land, then the loan is likely to be viewed as a mortgage, gaining vital tax benefits. Call us for more information.
1st and 2nd Mortgages
The key to a great mortgage: Finding the right loan officer. It's all about credibility, dependability, and longevity.Whether you are buying your first home or looking for a mortgage refinance, you want to find the best mortgage rate possible. Mortgages will allow you to own a home, whether a starter home or the home of your dreams, without having to wait until you can pay for it outright. It is a good idea to get mortgage quotes for your home purchase so that you can choose the right type of mortgage for you and your family and get the best deal on a mortgage rate and an interest rate possible.
Here are some basic things to know about mortgages:
- Mortgage companies and lenders are the institutions that will lend you money to pay for your home. A mortgage company will give you a loan for your home, but you are indebted to them for that loan until you pay it off. Lenders will work with you to determine a mortgage rate, as well as decide if you will need any mortgage insurance or a second mortgage. It is a good idea to shop around for a lender or mortgage company, as every institution will offers different mortgage rates and mortgages.
- One of the decisions you'll have to make includes whether to get a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM). This is an important decision, as one type of mortgage rate may be a much better fit for you. With a fixed rate mortgage, your monthly rates will always be the same. An adjustable rate mortgage means that your monthly payments will vary, or adjust, according to the market.
- If you already have a mortgage but aren't satisfied with your current mortgage rate, you can refinance it to get a lower rate. By doing this you can save money now and in the long term. Your new refinanced mortgage might be for a shorter term, meaning that you'll save on interest in the long term because you'll be paying your mortgage for shorter period of time. Another reason to refinance your current mortgage would be to upgrade your current adjustable rate mortgage (ARM) to a different one so that you can take advantage of the introductory period when the mortgage rate is very low. Fixed rate mortgages can be refinanced to get a lower fixed rate, as well.
- A home equity loan or second mortgage is a way to get money out of your home. Even if you already have a mortgage, you can borrow against the amount of money your home is worth minus what you still owe on the first mortgage. You can use this money to improve the value of your home, pay off debts, or pay college tuition costs.
- If you are a veteran or current member of the U.S. Military, you can qualify for a VA loan, or Veterans Affairs loan. This loan carries many benefits that non-veterans do not have access to. For example, the mortgage rates for VA loans are usually lower. Also, sometimes having a VA loan will mean that you don't have to make a down payment on your home purchase. The benefits for veterans and their families are numerous, but you must be eligible to pursue such mortgages.
- Are you 62 or older? You may qualify for a reverse mortgage, if it fits your needs. A reverse mortgage allows you to receive payments from the equity in your home. The mortgage rate becomes money that you will get every month, in one lump sum, or as a line of credit. In this way, the mortgage is "reversed" so that the mortgage lender is paying you instead of the other way around.
- Do you have bad credit but still want to buy a home or want to refinance? This is possible through bad credit mortgages, which will help you to refinance your current mortgage or allow you to consolidate your debt. You may have less options than someone with good credit and you may have to work harder to get one that fits your needs, but with a B, C, or D credit score you can still get a good mortgage rate.
- Lenders mortgage insurance (LMI) or private mortgage insurance (PMI) is a premium that a borrower pays to a lender. This is sometimes required to protect the lender in case the borrower defaults on the home loan. Sometimes you can pay this up front, but sometimes it is built into the monthly mortgage rate. It is usually required when your downpayment is less than 20% of the home's value.
- So finding the right type of mortgage and the best mortgage rate to fit your needs can be a daunting thought. But it doesn't have to be. Explore the different types of mortgages on NationalRelocation.com and find exactly what you're looking for. Your mortgage refinance, home equity loan, VA loan, or adjustable mortgage rate (ARM) mortgage will feel a lot less stressful after finding the best lender or mortgage company to fit your needs.
HELOC's
HELOC stands for home equity line of credit, or simply "home equity line." It is a loan set up as a line of credit for some maximum draw, rather than for a fixed dollar amount.
For example, using a standard mortgage you might borrow $150,000, which would be paid out in its entirety at closing. Using a HELOC instead, you receive the lender’s promise to advance you up to $150,000, in an amount and at a time of your choosing. You can draw on the line by writing a check, using a special credit card, or in other ways.
Most HELOCs are second mortgages. An increasing number, however, are first mortgages, as yours would be if you used it to refinance your existing first mortgage. Using a HELOC as a substitute for a first mortgage is risky, for reasons discussed in a moment.
HELOCs have a draw period, during which the borrower can use the line, and a repayment period during which it must be repaid. Draw periods are usually 5 to 10 years, during which the borrower is only required to pay interest. Repayment periods are usually 10 to 20 years, during which the borrower must make payments to principal equal to the balance at the end of the draw period divided by the number of months in the repayment period. Some HELOCs, however, require that the entire balance be repaid at the end of the draw period, so the borrower must refinance at that point
Land Only Financing
Whether you are purchasing lake property, mountain view property, acreage in the country, or a lot in a neighborhood, our program fits your needs. We offer low down payment financing (as little as 5%), fixed interest rates, and more!
New Construction Financing
These programs combine the construction and permanent financing ofyour project. You qualify for the loan once, lock in the permanent rate, sign one set of loan documents and have up to 12 months to complete your residential construction project!
During the construction period, interest is charged only on the funds that have been disbursed. When the project is completed, the permanent loan period begins.
Depending on whether you can fully document your income or not, you can finance up to $3,000,000 and up to 90% of the future value. Contact us today for more details.
Cash Out Refinancing
Strictly speaking all refinancing of debt is "cash-out", when funds retrieved are utilized for anything other than repaying an existing lien.
In the case of common usage of the term, cash out refinancing refers to when equity is liquidated from a property above and beyond sum of the payoff of existing loans held in lien on the property, loan fees, costs associated with the loan, taxes, insurance, tax reserves, insurance reserves, and in the past any other non-lien debt held in the name of the owner being paid by loan proceeds.
As an example, a homeowner who owes $80,000 on a home valued at $200,000 has $120,000 in equity. That equity can be liquidated with a cash out refinance loan providing the loan is larger than $80,000. The owner could use the refinance loan to pay off the original mortgage and could then pocket whatever money is left over.
The total amount of equity that can be withdrawn with a cash-out refinance is dependent on the mortgage lender, the cash-out refinance program, and other relative factors, such as the value of the home.
Rate and Term Refinancing
The refinancing of an existing mortgage for the purpose of changing the interest and/or term of a mortgage without advancing new money on the loan. This differs from a cash-out refinance, in which new money is advanced on the loan. Rate and term refinances can carry lower interest rates than cash-out refinances.
Rate and term refinancing activity is driven primarily by a drop in interest rates, while cash-out refinance activity is driven by increasing home values. Because there are pros and cons associated with a rate and term and cash-out refinancing, the borrower must weigh the pros and cons of each before making any final decisions.
Second Home Loans
Mortgage companies are tougher on second-home loan applications than on primary-home loans. Why? Because the finances of a second-home buyer are, by definition, stretched thinner. The result is that second-home rates traditionally run one-quarter to one-half point higher than those for first residences. Ditto for origination points on vacation-home loans.
That said, however, the current environment for second-home lending is about as lenient as it has been in years. Banks are healthy again and a rebounding real estate market has them all rushing into the market at once. The result: heightened competition -- especially in the second-home arena. "The typical profile of a second-home owner is someone more affluent than a single-home buyer," says David Totaro, chief marketing officer for Dime Savings Bank of New York. "That's the type of person we want to do business with."
Lenders are still sticky when it comes to renting out your second home. Some lenders won't even write those kinds of loans; they have a hard time selling mortgages on investment property in the secondary market. If you find a lender that will, expect it to scrutinize you more carefully than if you were not a landlord.
If you don't need the rental income to meet the mortgage industry's ratios, you may not want to mention to your lender that you're thinking of renting. We're not suggesting that you lie on your mortgage application. That's a federal offense. But if you happen to change your mind, well, that's another story. "A lot of people go in under the guise of buying vacation property for personal use only to turn around and rent it out," says Keith Gumbinger, of mortgage researcher HSH Associates. "I have never heard of people getting caught."
Stated Income Loan / No Income Verification
The popular No Income Verification Loan (NIV) also known as Stated Income - requires No W2's, No Pay stubs, No Tax returns, and No IRS Forms. Available to W-2 wage earners, 1099, Self Employed, and Retired.
If you need financing but your income is difficult to prove or document then the answer for you is a Stated Income or No Income Verification loan.
There are "3" types of NIV or No Income Verification loans for purchase or refinance that offer up to 90% financing explained below:
- Stated Income Verified Assets Loan (SIVA) - Loan approval is based on your stated income, credit history, and verified liquid assets. The Verified Assets should be consistent with the income claimed.
- Stated Income Stated Assets Loan (SISA) - This loan features no assets being verified. You only state your income and state your assets on the application. This program carries a slightly higher rate because the assets are not verified. No longer available on Home Equity Lines or Fixed Rate second mortgages due to credit market.
- No Ratio Loans - Similar to the programs above except that no income information is provided or verified on the application.
90% to $417,000 ( need 720+ score; if available)
80% to $650,000 ( need 700+ score )
75% to $1,500,000 (if available; this could go to 70%)
90% to $2,400,000
80% to $4,400,000 ( 65% 1st loan )
Commercial Property Loans
Commercial property loan is a type of financing that can be used to purchase property for any type of business use. As long as the property is generating some kind of income for the business and/or contributes to the companies success then it is considered commercial property. A commercial property loan can be used to expand or improve your existing business and to refinance existing debt.
Funding sources in our directory finance most property types, including:
- Motels
- Apartments
- Shopping centers
- Retail stores
- Office buildings
- Automobile dealerships
- Owner occupied buildings
- Manufacturing facilities
- Health care facilities, and much more!
Call us today for more details at (423) 833-4858!
Jumbo Loans
With Jumbo Loans, you do have options. Jumbo loans can be fixed rate mortgages, adjustable rate mortgages, or FHA loans with up to 97% financing and new higher loan limits. Talk with a loan officer about your current financial situation, and your goals, and we'll work with you to find the best choice based on your needs.
With interest rates so low, consumer interest in Jumbo Loans is very high. If you are interested in finding out about securing a high end home without the jumbo mortgage rate, or getting your Jumbo Loan with a low (or no) down payment, talk to a mortgage expert today by calling (423) 833-4858.
jessica@amstn.com
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