As a home buyer, your mortgage is specific to your situation and lifestyle. First Home Mortgage specializes in a variety of loans that can meet your needs. Your Loan Officer will explain your options and deliver a mortgage with the best loan terms available.
Purchase and Refinancing Loans
Conventional Home Loans
Conventional mortgages are loans that are insured by private companies. Typically, these loans meet the funding criteria set by Fannie Mae and Freddie Mac. There are a number of conventional loan types offered by First Home Mortgage:
A fixed-rate mortgage has an interest rate that stays the same for the entire life of your loan. This offers a predictable monthly payment for a term of 10 – 30 years.
– Interest rate security
– Monthly payment stability
– Best for buyers planning to stay in their homes for a long time
Adjustable rate mortgages (ARMs) may allow you to lock in a low, introductory interest rate that could increase over time. A hybrid ARM offers a fixed period (typically 3-10 years) followed by a yearly adjustment to the interest rate. Hybrid ARMs are often represented by fractions, such as 5/1 – meaning the first rate reset takes place after five years and continues to reset each year for the life of the loan.
– Low starting interest rate
– Lower monthly payments during the initial term
– Best for buyers planning to keep their loan for a shorter period
Jumbo loans typically have higher loan amounts not allowed for standard conforming programs (set by Fannie Mae and Freddie Mac). This allows borrowers to a purchase a higher priced home with an affordable down payment.
– Fixed and ARM options
– Loans up to $3 Million
– Best for borrowers who are in the market for higher priced homes
The government guarantees certain programs through various agencies to better serve borrowers with unique circumstances. These loans can only be offered through an approved lender such as First Home Mortgage.
FHA loans are insured by the Federal Housing Administration (FHA). Programs are available for borrowers with limited savings for a down payment.
– Down payment as low as 3.5%
– Flexible use of gifts and grants for down payment
– Best for borrowers with limited assets for purchase
VA loans are insured by The Department of Veterans Affairs (VA).Service members and their spouses are eligible to purchase with little to no down payment or cash to close.
– Low to no down payment
– Refinance within the VA program without re-qualifying
– Specifically for eligible past and present service members and spouses
The U.S. Department of Agriculture (USDA) insures loans to home buyers with low to moderate income moving to designated rural areas.
– Down payment not required
– Provide up to 100% financing
– Best for borrowers with limited assets looking to buy in rural areas
State Housing Finance Agency Programs
Housing Finance Agencies (HFAs) are state specific and offer programs to residents to help purchase a home. Conditions and guidelines vary depending on the agency. These programs offer special incentives for first time home buyers:
- DCHFA (DC Open Doors)
- Florida Housing
- MMP (Maryland Mortgage Program)
- Mass Housing (Massachusetts)
- NCHFA (North Carolina Housing Finance Agency)
- Rhode Island Housing
- VHDA (Virginia Housing Development Authority)
The Federal Housing Administration (FHA) offers loans specifically for renovation. FHA 203(k) funds a primary residence including repairs in one mortgage with a minimum down payment of 3.5%. There are two types of 203(k) loans:
- Standard FHA 203(k)
Allows borrowers the flexibility to finance major rehabilitation that costs a minimum of $5,000 up the county limit.
- Streamline FHA 203(k)
Provides financing for minor renovations and repairs up to $35,000 of your mortgage.
Fannie Mae (FNMA) Home Style allows you to purchase and renovate a primary residence, second home or investment property* with a minimum down payment of 5% in a single mortgage up to the lending limit.
Construction only loans strictly finance the building of a house. Once the home is complete, borrowers must refinance into a permanent loan.
Construction-to-permanent loans finance the building of a house then convert to a permanent loan from the same lender. This ensures the home buyer only goes through the mortgage process once.