Fixed Rate Mortgage – Available in a 10, 15, 20 or 30 year, this program is fully amortizing which means that the loan payments are based on paying the mortgage off during the term of the loan (i.e., a 10 year mortgage will be paid off in 10 years). The monthly principal and interest payments remain the same for the life of the loan. The maximum loan amount is $417,000.
Adjustable Rate Mortgage (ARM) – Available in a 1/1, 2/1, 3/1, 5/1, 7/1 and 10/1, this program’s rate and payment can adjust after the year indicated by the first number (i.e., a 1/1 mortgage can adjust after one year, a 3/1 mortgage can adjust after the first 3 years). After the initial adjustment, the rate and payment can then adjust every six months or one year depending on the term outlined in your mortgage note. In addition, a typical Adjustable Rate Mortgage will have a “lifetime cap” or maximum rate over the lifetime of the loan.
Balloon Mortgage – A fixed rate, level payment mortgage that is amortized over a certain period (usually 30 years), but which has a balloon term (when the balance comes due). The balance can be refinanced with certain conditions or can be paid off in full at that time.
Construction Mortgage – A short term mortgage, this program provides financing for the building or substantial remodeling of a home. Borrower is approved for an amount based upon contractor bids and final appraised value of the home. During the construction period, the lender “holds” the funds and disperses them to the contractor as the work is completed. Terms of construction loans are typically 6 months, 9 months or 12 months as dictated by the contractor and the borrower for the amount of time it will take to complete the construction of the home. Payments are based on the amount of funds used and are typically interest only payments. Upon completion of the home, the construction loan needs to be refinanced into a permanent type mortgage.
USDA Rural Development Mortgage – Administered by the Department of Agriculture, this program provides 100% financing with a 30 year fixed rate that is comparable to conventional rates. In addition, the program can allow for some or all of the closing costs to be rolled into the loan amount if the property appraises for more than the purchase price. Some property and income restrictions apply.
FHA (Federal Housing Administration) Mortgage – Administered by the Department of Housing and Urban Development, this program allows for less of a down payment (3.5%) than conventional mortgages. Available in fixed rate or adjustable rates, this program is more flexible than conventional mortgages. Allow for some property restrictions apply.
Reverse Mortgage – This program allows homeowners, age 62 and up, to access a portion of equity in their property. Unlike a traditional mortgage, no payment is required until the borrower(s) no longer occupy the residence as their primary residence and was designed to give senior citizens more security in their retirement years. The program is available in fixed or adjustable rates.
Federal VA Mortgage – This program is offered to active or inactive members of the military. The Federal VA program allows for 100% financing at an adjustable rate or fixed rate that is comparable to conventional rates. Some property restrictions apply.