Private Money - This is a loan made by either an individual or a group of private investors. Rates are typically higher and require more down but will do loans most mortgage lenders won't do. These loans typically close faster than conventional or government programs.Government
FHA Loans The Federal Housing Authority (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), plays a significant role in helping low- to moderate-income families qualify for mortgages. FHA assists first-time buyers and others who would not qualify for a conventional loan, by providing mortgage insurance to private lenders. Interest rates for an FHA loan are usually the going market rate, while the down payment requirements for an FHA loan are lower than conventional loans. The required down payment can be as low as 3 percent and the closing costs can be included in the mortgage amount.
FHA 203(b) This mortgage loan is funded by an approved lending institution and insured by HUD
FHA 203(h) This mortgage is forvictims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
FHA Section 255Home Equity Conversion Mortgage (HECM) aka Reverse Mortgage This mortgage loan is for senior homeowners age 62 and older who want to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home.
FHA 203(k) Mortgage HUD's primary program for the rehabilitation and repair of single family properties.
FHA 203(k) Streamline Mortgage This program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in.
FHA Energy Efficiency Mortgages This mortgage program homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficiency features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage.
FHA Adjustable Rate Mortgage
FHA Mortgage Buydown program
VA Loans VA Loans are guaranteed by the U.S. Department of Veterans Affairs. Service persons and veterans can qualify for a VA Loan, which usually offers a competitive fixed interest rate, no down payment and limited closing costs. While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.
RHS Loan Programs The Rural Housing Service (RHS), which is part of the U.S. Department of Agriculture, guarantees loans from private lenders to help low- to moderate income families qualify for mortgages.
Commercial Loans - Loans made to buy a building for your business. There are many different types of uses for a commercial mortgage. Please visit the Commercial Mortgages page for more info.
Conventional Loans - The only security guarantee is the value of the property.
Conforming Loans Conventional loans that follow the terms and conditions established by the guidelines of Fannie Mae and Freddie Mac.
Fixed-Rate Mortgage The interest rate and the principal payments remain fixed throughout the term of the loan and will be paid off at the end. Keep in mind your monthly escrow account payment could vary from year-to-year as taxes and insurance rates change.
Buy Down Mortgage The term used to temporarily buy the interest rate down on a mortgage loan. An example would be if you qualify at 7% for a 30 year fixed rate mortgage. A 3-2-1 buydown would give you your first year at a rate of 4%, second year at 5%, third year at 6% and the fourth and remaining years at the 7%. This is helpful when the seller pays the charges to make this work for you. For more information about a 3-2-1, a 2-1 or a 1 buy down mortgage, contact Sterling Home Mortgage.
First Time Home Buyers There are several different first time home buyer mortgages available. In my opinion, one of the better programs is the "My Community Mortgage" program. This loan program allows for reduced M.I. premiums as well as can be run via an automated system
Variable or Adjustable-Rate Mortgage The interest rate on the loan fluctuates over the period of the loan. Periodic adjustments to the interest rate are made based on changes to a defined index. The loan's interest rate is determined by adding a fixed number of points to the defined index.
Balloon Loan Short term, fixed-rate mortgage that has monthly payments usually based on a 30-year amortization schedule and a lump sum payment due at the end of term, usually 3, 5 or 7 years. The interest rate on balloon loans is usually less than a 15- or 30-year fixed-rate mortgage.
Piggyback Loan A second mortgage that closes with the first. Often the first mortgage is for 80% of the purchase price and the "piggyback" is for 10%. The home buyer covers the remaining 10% with their down payment. (Some lenders will write a second mortgage of 15% or even 20% of the purchase price.)
Housing Finance Agencies These agencies offer special loan programs to low- and moderate-income buyers, buyers interested in rehabilitating a home in a targeted area, and other groups as defined by the agency. Working through a housing finance agency, you can receive a below market interest rate, down payment assistance and other incentives.
Jumbo and Non-Conforming Loans Loans above the maximum amount established by the guidelines of Fannie Mae and Freddie Mac. Often the interest rate charged for a jumbo or non-conforming loan is higher than that of a conforming loan. ***SEE NEW TEMPORARY CONFORNIMG JUMBO LIMITS***
B/C Loans Loans for borrowers who cannot meet the credit guidelines established by Fannie Mae and Freddie Mac. The purpose is to offer temporary financing to someone whose credit history disqualifies them for a conforming loan (including someone who has recently filed for bankruptcy, foreclosure or late payment on their credit report). Typically the interest rates run higher and vary depending upon the individual credit situation.
Rural Housing Programs These loans offer up to 102% financing of rural properties. Contact us to find out if you would be considered rural. Areas in Arizona are Show Low, Pinetop, Lakeside, Payson are just a few. There is even some areas in or near Queen Creek.
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