PURCHASE
Purchase Loans
Purchase loans are used for acquiring a property for the purpose of primary residence, second home or investment property. There are
many types and we've listed some of the major ones below. All generally yield several advantages such as: all interest on the mortgage is tax deductible,
provides a way to diversify your investments from only stocks and mutual funds, builds equity with each payment, and can be used to borrow against
1. Conventional Loan
Conventional loans are actually any type of creditor agreement that are not financed by the Veterans Administration (VA),
or supported by the Federal Housing Administration (FHA). In general, all conventional loans are protected by the government sponsored entities
such as Fannie Mae (FNMA) and Freddie Mac (FHLMC). There are different types of conventional loans that have their own peculiarities. Conforming
and nonconforming types of conventional loans are the most common kind of subdivision. Conforming loans have to meet the guidelines set by Fannie
May and Freddie Mac. One key feature is that the loan amount can not exceed the maximum loan limit set by Fannie and Freddie. These limits change but are
generally around $400,000 - $500,000. Contact us to get the current limits.
2. Jumbo Loan
A jumbo is a loan in which the amount borrowed is greater than loan limit set by Fannie Mae (FNMA) & Freddie Mac (FHLMC).
These loans enable a borrower to purchase high value properties.
3. FHA/VA Loans
FHA loans generally have lower interest rates, down payments, and closing costs and are backed by the US Government.
A VA loan provides veterans and/or their surviving spouses with a federally guaranteed home with zero down payment.
REFINANCE
Mortgage Loan Refinancing
Refinancing your home mortgage can be done for several reasons. Historically low interest rates are a fantastic reason to
refinance to save money and build more equity in your property at a faster rate. Other common reasons for a mortgage refinance include converting an
ARM (Adjustable Rate Mortgage) to a fixed rate, taking built up equity out of your home in the form of cash (cash out refinance) for home repairs and
improvement, debt consolidation, or simply to lower your monthly payments.
1. Rate Term Refinance
The process of paying off one loan with
the proceeds from a new loan, using the same property as
security. Cash received by the borrower at closing may not
exceed $2,000 (not allowed in Texas). Status varies depending
upon State Law. The purpose is, as the name implies, to reduce
the interest rate, payment, and/or overall term of the mortgage.
The major advantage is a reduction of the interest rate,
payment, and/or the over term of the mortgage.
2. Cash Out
Refinance
Cash-out refinances are deemed to have
a higher risk factor than either rate & term refinances or
purchases due to the increase in loan amount relative to the
value of the property. Advantages include:
SPECIAL PROGRAMS
Specialty Loan Programs
If you have unique mortgage needs, we offer a wide variety
of loan programs to accommodate your purpose and financial situation. From buying your
first home to putting in that pool you've always wanted, we have a program for you!
1. First Time Home Buyer
There are several programs available that are specifically targeted to
first time home buyers. These programs usually have lower down payments, lower rates, and are usually
easier to qualify. Some of these may be subject to income and property value limits and may include a 'recapture' tax
if the home is sold soon after purchase.
2. Home Equity Line of Credit
A home equity line of credit (HELOC) is a loan in which the
lender agrees to lend a maximum amount within an agreed period, where the collateral
is the borrower's equity in the house.
These loans have several nice features including the ability to borrow only what is needed, paying interest only on amount that is borrowed,
and flexible access to funds. Interest on the loan is usually tax deductible.
3. Home Improvement
Home improvement loans can provide tax deductible money for a complete remodel or specific improvements.
It is essentially a second mortgage or home equity loan, which is paid to you in one lump sum or in draws at the loan closing. It
can used for repairs, a new kitchen or bathroom, landscape improvements and swimming pools, etc. Basically, any action that increases the value of
the property and its potential sales price are considered to be home improvements. Interest is usually tax deductible.
