Loan Programs
When considering new home financing you have multiple options in choosing a loan type that best suits your needs. Below is a list of popular loan options you should discuss with your mortgage broker.
Fixed-Rate Mortgage
Your interest rate remains the same throughout the duration of the loan term.
Adjustable Rate Mortgage (ARM)
As this loan matures, your interest rate will adjust periodically based on an index which is selected early in the lending process. An ARM carries a lower monthly payment at the beginning of the loan term, making it an attractive option for owners who may not live in the home longer than 5 years.
Conventional/Conforming Loans
For Washington and Oregon mortgage companies, typical conventional financing is based on a loan limit at or below $417,000 for a Single Family Residence. Other factors, such as credit, assets and income are weighed during the approval process, but the loan amount in most states must not exceed $417,000 for a conventional or conforming loan.
Jumbo Loans
Jumbo financing is based on a loan limit which exceeds $417,000 for a Single Family Residence. Other factors, such as credit, assets and income are weighed and may have more strenuous requirements than those in conventional lending. A larger down payment may also be required.
Government Loans
Loan programs which are considered to be Government Loans include:
FHA | The benefit of utilizing the FHA loan program typically lies in credit requirements which are less strict and a Down Payment requirement of only 3.5% - which can be gifted to the borrower. First Time Home Buyers and the seasoned Home Owners alike can benefit from this program.
VA | The VA loan program allows our valued Veterans to utilize the benefits they have earned when purchasing or refinancing their homes. This program can be used in a refinance transaction not only for interest rate reduction, but for cash-out purposes as well.
USDA RURAL DEVELOPMENT | Your home, or the home you are interested in purchasing may qualify for the USDA RD program - even within city limits. Ask your loan officer whether your home falls within qualifying areas. You may be able to take advantage of this program which allows ZERO DOWN on some purchase transactions and up to 102% of the homes value* on refinance transactions.
*Loan amounts exceeding the value of the home may not be allowed for certain tax deductions. Consult your CPA or tax preparation professional regarding this information.
REVERSE MORTGAGE | The Reverse Mortgage allows you to withdraw equity in your home, use it as you like while you live in the home and when you are ready to sell the home, the loan is then repaid. You must be 62 years or older, the home must be your primary residence and the home must meet HUD guidelines.