Backed by the Department of Housing and Urban Development this mortgage is the most popular, and currently the easiest loan to obtain for first time home owners, after the mortgage meltdown. The FHA mortgage offers the borrower the ability to put as little as a 3.5% down payment. Seller can contribute up to 6% of the purchase price to the buyer towards closing and prepaid costs. FHA allows gifts from family members for down payment and closing costs. The FHA loan can be financed as a 30 or 15 year fixed, and a 3/1 or a 5/1 ARM for 1-4 unit properties
Backed by the Veterans Administration and the federal government it is similar to FHA except that you have to be a qualified Veteran or military person. VA allows 100% loan to value no down payment loan. A homeowner with a down payment would lower the VA funding fee. No mortgage insurance is required on the VA loan making loan payments lower for the borrower. Debt to income limit is 45% and is a available in a 30 or 15 year fixed rate for 1-4 unit properties
Conventional loans with as low as 5% down with credit score FICO requirements. Conventional loans are backed by Fannie Mae or Freddie Mac and in some cases a portfolio Bank. Conventional loans can be used to finance 2nd homes, investment properties, Single Family Residences, and Condos. Conventional loans with 20% down will not have mortgage insurance added to the payment. Condos that are not approved by FHA or VA, Conventional loans are the loans to use and if 20% down was gifted to the borrower than they would not need the 5% of their own money. Conventional loans can be financed as a 30, 25, 20, 15, or 10 year fixed, as well as 7/1, 5/1, 3/1, and a 1/1 ARM. Conventional is also available as an interest only loan. Conventional loans are available for 1-4 units.
USDA / RURAL HOUSING
Backed by the USDA Rural government is similar to VA and FHA, except only for selective rural areas and has income limitations. USDA is a 102% loan with no down payment required and does not need monthly mortgage insurance. The USDA loan is not limited to first time homebuyers. The seller can contribute up to 6% of the purchase price towards buyers closing and prepaid cost. USDA / Rural loans are auto underwritten by the GUS underwriting system for quick approvals. Financing is available as a 30 year fixed only for single family residences and condos only.
The Utah Housing Corporation was created as a public corporation by the state of Utah government to raise funding to assist in the creation of affordable housing for low income households. The program is for first time homebuyers or someone who has had no mortgage payment for the last three years. The Utah Housing Corporation works in conjunction with FHA and VA to provide a 103% loan to value where buyers can come in with little to no down payment. This allows the down payment and closing costs to be financed into the loan. Selective limits and income limitations do apply. Need a 660 credit FICO score. Financing is available as a 30 year fixed loan for single family residences, condos, and PUD’s.
Reverse mortgages are backed by the government and FHA insured. Reverse mortgages enable eligible homeowners to access money built up as equity in their home. Primarily designed for seniors 62 and older who own and occupy the home. Benefits of a Reverse Mortgage include tax free funds, no loan repayment, no income, medical, or credit requirements. The home owner retains ownership for life, GUARANTEED. With the Reverse Mortgage the borrower must pay insurance and real estate taxes each year and they can continue to live in the home for life. Funds received can pay off existing mortgage, supplement retirement income, buy a new car, make home repairs, travel, or anything else.
2ND MORTGAGE LOANS
Subordinate to the first mortgage these loans offer the borrower the ability to get money for home improvement, debt consolidation or many other reasons without disturbing their first mortgage. Convenient when you have a low interest first mortgage. Must have a minimum of a 680 FICO credit score, max combined loant to value is 75%.
ZERO DOWN PROGRAMS
USDA/Rural Housing, FHA, Utah Housing programs are available and allow for many ways to purchase a home with zero down. Here are a few ways to accomplish this; Gift money from a family related party, gift of equity from family member, local grants, collateralized loans(from 401K, IRA, stocks, bonds, and real estate), sale of personal property, employer bonus, rent or lease with cumulative set aside, and sweat equity for labor performed.
Jumbo loans are available up to $900,000.00 with no adjustment to rate, but can go up to $1.5 million. Refinance, cash out, or purchase. Mortgage insurance is not required. There is no rate adjustment for cash-out. No rate adjustment for impounds/escrows. One day off the MLS allowed for rate and term refinance. Financing available on a jumbo loan as a 30 and 15 year fixed rate mortgage or as a competitive ARM products. Documentation varies upon product can be done with full document, alternate documentation and limited documentation.
203K FHA STREAMLINE
Similar guidelines as the FHA loan but with the ability to finance qualified home improvements on a purchase or a refinance up to $45,000.00 with approved Energy Efficient improvements. One mortgage is given based on the value plus improvements, up to 110% of the value. These improvements can be for many different reasons, such as roof gutters, kitchen or bathroom remodeling, finishing a basement, painting, heating and air conditioning, electrical and plumbing repairs just to name a few. Luxury additions, such as pools and structural repairs are not allowed, you can only improve on the current structure of the home. The loan offers a 50% draw on the improvements at closing and the remainder once the work has been completed. The work must be completed within 60 days of closing
Building a new home can be an exciting prospect - unless you get caught up in a construction loan approval process that's overly complicated and time consuming. With this loan we will finance up to 90% of the cost of land plus the costs of construction. We offer a one time fixed rate closing or the traditional ARM products.
Normally conventional loans are used for investment properties. Due to the mortgage meltdown, guidelines have changed quite a bit on investment loans. Investment financing requires 20% down on a single family residence and 25% down on 2-4 unit properties on purchases. A 660 minimum credit FICO score is required and six months reserves for each additional financed second home or investment property. Investment properties are available as a full doc loan only.