Mortgage Loan programs are continuously changing and evolving. At HomeGrown Mortgage, our loan specialists spend time to understand your unique scenario and find the right mortgage program for you.
A flex-term fixed rate mortgage is a type of homebuying loan with varying 10-30-year repayment periods. These loans offer a fixed rate giving you the peace of mind that your rate will not raise overtime. The longer your loan repayment period is, the lower the fixed monthly payments will be. Flexible term 10-30 year mortgages are one of the most popular mortgage options among homebuyers.
A conventional loan is a type of home buyer’s loan that is not backed by a government entity. Conventional loans are available through private money lenders and have rates that tend to be higher than those of government-back mortgages. These loans generally have a fixed rate, meaning the interest rate does not change over time. In some cases, conventional loans can be guaranteed by Fannie Mae or Freddie Mac.
A FHA loan is backed by the Federal Housing Administration, meaning your lender will be protected against loss if you default on your loan. FHA loans more flexible when it comes to down payment requirements and credit options. FHA loans are generally available to those with small down payments or a lower credit score. These loans are perfect for first time home buyers who cannot afford a massive down payment. Typically, FHA interest rates are competitive and offer home buyers a smaller interest rate compared to conventional loans.
VA loans were originally established by the U.S. Department of Veterans Affairs (VA) to assist active military members and veterans to purchase homes with little to no down payments and with no private mortgage insurance. These loans provide up to 100% financing on the value of the home. Those who qualify for a VA loan can use them to purchase a home, build a home, repair a home, or refinance a mortgage.
A USDA home loan is an option that helps makes purchasing homes more affordable for low income individuals residing in rural areas. These loans are backed by the U.S. Department of Agriculture the same way the Department of Veterans Affairs backs VA loans. Interest rates start as low as 1% for USDA loans, making them easily repayable by low income individuals. These loans help low income individuals in rural areas become home owners.
A non-qualified loan (also referred to as non-QM) has different underwriting guidelines compared to conventional or government backed loans, making it easier for those who are self-employed or those with credit issues to obtain a mortgage loan. A non-qualified loan looks at your bank statements and your assets versus your traditional income like a government backed loan. For those who are self-employed, a non-qualifying loan helps them to purchase a home since the guidelines are different of loans that are backed by government securities.
A purchase-money loan is similar to seller-financing, where the loan is given to the buyer from the property seller. These loans offer advantages to those who do not have worthy credit for a conventional loan. The seller determines the down payment, interest rate, and closing fees when using a purchase loan to buy a property. For those with a bad credit score or a high debt to income ratio, a purchase loan provides you with the opportunity to own property where a traditional bank financing would not.
When you refinance a mortgage, you are essentially trading in your current mortgage for a new and improved mortgage. Refinancing gives you the opportunity to reset your interest rates and pay off your home at a quicker rate. Many homeowners refinance their owns to get better rate terms, a lower monthly payment, or to remove another person from the mortgage. The refinancing process is far less complicated than purchasing a home, since your already own the property. Refinancing can be a quick process that takes around 30-45 days.
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