Mortgage Loan Programs
This is the most common type of mortgage. This type of loan often requires 3 – 20% of the total home value as a down payment. If the down payment is less than 20% of the purchase price, mortgage insurance will need to be obtained until your equity reaches 20% of the home value.
These government loans are available to veterans who have served in the U. S. Armed Services and, in certain cases, to spouses of decease veterans. The main benefit to a VA loan is the borrower does not need a down payment. The loan is guaranteed by the Department of Veteran Affairs, but funded by a conventional lender. The requirements vary depending on the year of service and if the discharge was honorable or dishonorable.
A jumbo mortgage is a home loan with an amount that exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government sponsored enterprises that buy mortgages from lenders. Typically Jumbo mortgages are greater than $417,000. Jumbo loans may have higher rates than conventional mortgages and required down payments on these loans are generally larger than with conventional loans. A minimum credit score of 700 is usually needed to obtain jumbo financing.
Portfolio Loans are loans that are owned and serviced by the lender that issued the loan and kept in their investment portfolio. This is good news for the borrower as you and the lender will build a strong relationship enabling you to contact the lender directly with any questions you may have regarding your loan.
These government-backed loans allow people to purchase a home with as little as 3.5% down. The government doesn’t actually lend the money, but it does insure the mortgage.
Thought you couldn’t consider a refi? HARP II might be for you.
If you have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the HARP II (Home Affordable Refinance Program). Also known as the Making Home Affordable Program, HARP II, is designed to help homeowners get a more affordable, more stable mortgage.
In order to qualify for HARP II refinancing:
- Your existing loan must be a Fannie Mae or Freddie Mac originated loan
- The loan must have originated on or before June 1, 2009
- You must have made the last 6 months of payments on time
- No minimum credit score is required
- Only first mortgages are eligible; A Home Equity cannot be combined with a first mortgage, and no cash can be taken out
- Primary residences, second homes and investment properties of 1-to-4 units are eligible
- Appraisal may or may not be required
- To see if you are eligible for HARP II, talk to one of our Mortgage Loan Specialists in your area now!
Fixed Rate Loans
A fixed rate loan is ideal for individuals who plan on staying in their homes for a longer period of time. Interest rate and monthly payment amounts are fixed for the life of the loan making budgeting easier. Terms typically range from 10 – 30 years.
Adjustable Rate Loans
An adjustable rate loan is ideal for individuals who don’t plan to stay in their homes for a long period of time and expect their annual incomes to increase. Lower initial interest rates and payments free up funds early in the life of the loan. Rates adjust with the market after the initial loan period.
A Home Equity Conversion Mortgage (HECM), more commonly known as a reverse mortgage loan, allows you to access the equity you’ve built in your home without having to sell it. The Home Equity Conversion Loan is insured by the government via the Federal Housing Administration (FHA). The most unique feature of this government insured loan is that you never have to make a monthly mortgage payment. You can use the funds you receive as you wish: to supplement your retirement income, make home improvements, pay bills, or buy a new or second home. It’s all up to you. The loan is repaid only when you sell your home or it is no longer your principal residence. See our Reverse Mortgage page for further details.
Standard Bank reverse mortgages are guaranteed by the US Dept. of Housing and Urban Development and insured by the Federal Housing Administration. These materials are not from HUD or FHA and were not approved by HUD or a government agency.