There's much to see here. So, take your time, look around, and learn all there is to know. This page is meant to help the average homeowner navigate the various mortgage options that are available to him or her. Please note this information is NOT a substitute for speaking with a mortgage professional. An applicants income, credit, work history and other factors will all need to be taken into consideration before any credit decisions can be made. We hope you find value in perusing this page. If you're ready to get pre-approved for your home loan, click the link below to begin your application.
This government insured loan has become the standard for many homeowners particularly because it suits wage earners on a fixed income. The payment will remain consistent for the life of the loan. The 30 year term allows for a lower monthly payment than 15 year loan products. FHA generally allows for lower down payments (as low as 3%) and higher debt-to-income ratios, which translates to more people qualifying for this than any other loan product.
This is another common loan option for homeowners who are wage earners on a fixed income. The payment will remain consistent for the life of the loan. Again, the 30 year term allows for a lower monthly payment than 15 year loan products. More restrictive debt-to-income ratio guidelines bar some people from this loan option. Depending on the bank and loan scenario a slightly higher down payment may be required (5%).
Most banks require a minimum of 20% down when financing a second home. 30- and 15-year amortization options available, depending on the borrowers debt-to-income ratios (DTI) being that no rental income is considered in addition to borrowers primary source of income.
Plan on having 20% ready for a down payment. Generally speaking banks will only consider 75% of any future rents for rental units.
Conforming loan limits vary by county and can change from time to time to keep up with inflation and the increasing cost of housing. Jumbo loans will require a larger down payment and have higher interest rates.
Many self-employed people opt for an Adjustable Rate Mortgage (ARM) to allow themselves the flexbility to make a lower payment when necessary. Rates will continue to rise over the life of the loan, making for a steadily climbing mortgage payment.
Hard money loans come with the steepest costs as well as the highest interest rates. They are designed as a short term financing option and are to be repaid within 12-18 months of funding. Many investors use this option to quickly obtain property at below market prices or if the condition of a property disqualifies it from traditional lending.
Borrowers who do not have a social security number still have options to purchase a home using ITIN programs. Although larger down payments are required and interest rates will be slightly higher than traditional routes, this loan product makes the American dream of home-ownership for Foreign Nationals obtainable.