The right loan for you must be financially feasible, aligned with your goals as a homeowner, and will ultimately leave you in a better place than where you first started. We provide you with a full array of loan solutions so you can choose the one that best suits you.
It’s imperative for you to have a full understanding of each loan type so you can make informed decisions. Take a minute to assess each loan type before you set your decision in stone.
Conventional loans boast great rates, lower costs, and home buying flexibility. They are the loan option of choice for about 60% of all mortgage applicants. Conventional loans are also known as conforming loans, since they conform to a set of standards set by Fannie Mae and Freddie Mac. The following are highlights of this program.
If you have good credit and need a loan quickly, this is the loan for you. There are fewer restrictions on the loan itself, and there are fewer requirements for you to meet. Plus, a conventional loan is usually approved much faster than a government-backed loan. Also, you won’t necessarily need to purchase mortgage insurance, which can save you quite a bit of money in the long run. Another reason to consider a conventional loan is if you’re looking to purchase a condo.
Conventional loans are beneficial in a number of ways, which is why they can be challenging to qualify for – but if you do qualify, it is definitely something to consider seriously.
A fixed mortgage has an interest rate that won’t go up or down over the life of your loan. It’s the best security against rising mortgage rates and higher payments. If you know you don’t plan on moving or refinancing in the next few years, a fixed rate mortgage may be your best choice.
Fixed rate loans are great for offering peace of mind. You know your rate will never change. And fixed mortgage rates are currently at historic lows. This means your mortgage payment starts low and stays there.
An ARM (Adjustable Rate Mortgage) has a fixed rate for the first several years of the loan term. That’s often called the initial rate, because it’s lower than any comparable rate you can get for a fixed-rate mortgage. Rates may be fixed for 7 or even 10 years, although the 5-year ARM is a very common option.
Once the fixed-rate portion of the term is over, the ARM adjusts up or down based on current market rates, subject to caps governing how much the rate can go up in any particular adjustment. Typically the adjustment happens once per year.
Each time your interest rate changes, your payment is recalculated so that your loan is paid off by the end of your term. Terms on ARMs are usually 30 years, but they don’t have to be.
With an FHA Loan, you can refinance up to 97.75 % of your home’s value. FHA cash-out refinance loans allow you to take out up to 80% of your home’s value. FHA loans are available in multiple terms, including 30 and 15 years. Created and insured by the Federal Housing Administration, FHA loans could be a great fit for just about everyone.
FHA Streamline. If you’re currently in an FHA loan, you could get a lower mortgage rate and payment with an FHA Streamline. The FHA Streamline offers a limited documentation option, has flexible credit requirements, and you could even avoid an appraisal.
The FHA 203K loan is designed for those buyers who have found the “perfect” home but it isn’t in “perfect” condition. With the 203K, you can borrow the purchase price PLUS extra funds for fixing it up. So with one loan you can buy your house and turn it into your home. Convenience and security for those hidden surprises that sometime pop up after you sign on the dotted line.
This loan program can be used for the purchase or refinance of a property that needs work. It allows you to borrow the funds you need to purchase and renovate the property. These loans are not new but took a back seat to other ways of financing the cost to renovate. With property values no longer increasing by double digits, and with equity loans being capped at 70-80% of current values (rather than 100% you could get just a few years ago), the options for financing renovations are limited.
The VA loan is a great program for veterans and/or their surviving spouses. Interest rates are low, the qualifications are simple and there is never any mortgage insurance. The VA loan program allows qualified borrowers to purchase a home with NO money down! And if you are refinancing, you could possibly do so without any mortgage insurance, even if you need to borrow up to 100% of your home’s value. Available in multi-year terms, the VA program gives you the flexibility of designing the finding the right option for yourself.
By meeting one of the following conditions:
Finally, a veteran applying for a VA Loan must not have been discharged under dishonorable conditions.
If you need a mortgage for more than $726,200, go Jumbo. Because of loan size limits imposed by government agencies, loans of $726,201 or more are subject to Jumbo (High Balance) guidelines. Simply put, it’s the only option…but it is also the best option because rates are at their lowest.
You own a large home and the large payment that comes with it. Not to worry. The Jumbo (both Conventional and FHA) loan program is designed just for you. Because the loan amounts are high, even a change in your rate of 1% can make a huge difference in your monthly payment. For instance, on a $800,000 loan, reducing your interest rate by only 1% equates to a savings of over $600 a month….every month.
Do you feel more comfortable in the country instead of the city? If so, a USDA loan may be right for you! A USDA home loan offers zero down payment for eligible rural and suburban home buyers.
The USDA guarantees a mortgage issued by Semper, similar to an FHA loan, allowing us to provide you with the best rate possible. USDA loans also allow for little to no down payments.
By meeting the following conditions:
Finally, those with credit scores above 640 may be eligible for streamline processing. Streamline processing allows for faster loan processing with less stringent requirements.
Contact Semper Home Loans today to schedule a free consultation for first time homebuyers.