FHA Loans

FHA loans are insured by the Federal Housing Administration. These are some characteristics of FHA loans:

3 1/2 % of the purchase price is the minimum cash requirement and must be borrower's own funds (can be gifted from a family member).

No cash reserves required on 1 - 2 families,

Up to 6% sellers concessions allowed for points, prepaids, escrows and closing costs.

Non-occupying co-borrowers ok (must be a family member; one family dwellings only)

Conventional Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Conventional Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home free and clear twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

VA (Veterans Affairs) loans       VA loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs to veterans for the purchase or refinance of a home. 

Benefits of a VA Loan:

• No down payment required
• No Monthly PMI (Private Mortgage Insurance), although, there is an upfront funding fee added to the loan
• Closing costs can be added to the loan or paid by the seller
• Mortgage can be assumed by a new buyer  if the loan is sold (restrctions apply)
• Can be used to purchase, refinance, build or energy savings home improvements                  

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

Adjustable Rate Mortgages (ARM)
When it comes to ARMs there's a basic rule to remember...the longer you ask the lender to charge you a specific rate, the more expensive the loan.

Annual ARM
This loan has a rate that is recalculated once a year.

Monthly ARM
With this loan, the interest rate is recalculated every month. Compared to other options, the rate is usually lower on this ARM because the lender is only committing to a rate for a month at a time, so his vulnerability is significantly reduced.

Reverse Mortgage  For home owners age 62 and older, allows you to convert part of your home equity into tax-free* income, without having to sell their home and/or make monthly mortgage payments.

No income or credit check, No required monthly payments, title stays in your name, the monies you draw from the equity is non-taxable; you can draw funds at closing, use it as a credit line, take monthly payments to you, or a combination of all. Funds can be used to pay off an existing mortgage, home improvements, credit card debt, vacations, gifts, etc.

*Please consult your tax advisors, not available in all states.