TJ will work with you to see how much you qualify for. It’s a good idea to think about your goals. What is the price you are looking for and what payment are you comfortable with?
It’s simple! Click on Apply Now above and that will get you started. TJ will want to review paystubs, tax returns and bank statements to get you approved.
Check out the many different types of mortgages we do below. TJ will help you determine which is the best option for your scenario.
When you are looking to buy or finance your next home, it’s important to invest time comparing the different options and what might be the best program for you. Make sure to understand what your options are, what does your mortgage consultant recommend and why do they recommend that loan program. This is a big investment; make sure you understand the answers to these important questions and more. Invest time in educating yourself about what’s available.
Conventional Home Loans
Conventional financing is the most common type of financing Home Team Lending does.
Fannie Mae (FNMA) or Freddie Mac (FLHMC) set the standards for conventional loans. Conventional financing requires a minimum of 3% down.
If you put less than 20% down with a Conventional loan, you will be required to pay Private Mortgage Insurance (PMI.) The amount of PMI will depend on the amount down and the credit score of the applicants. Having good credit pays when it comes to your mortgage options. When you get a mortgage and have to pay PMI, your premium will be better if your credit score is higher. The PMI can be removed from your loan once you reach between 20% and 25% percent equity, depending on the time frame you have paid. Your lender will automatically remove the PMI once you hit 22% equity based on the original sales price.
There are some conventional loans with less than 20% down that do not have monthly mortgage insurance. Check with your mortgage originator to see what options might work for you to avoid PMI.
The Credit score requirements for conventional loans are stricter for higher loan-to-value (LTV) loans. The rate and PMI premium are based on your credit score. So, the higher the score, the better the rates.
TIP: Spend time comparing the different options and make sure to ask questions if you don’t understand or if you want to look at different options. There is sure to be a loan that will work for you!
VA Loans
In 1944, the U.S. government created a military loan guaranty program to help returning service members purchase homes. The result, the VA Loan, is a mortgage loan issued by approved lenders and guaranteed by the federal government. Since its inception, the VA Loan program has helped place millions of veterans and their families into an affordable home financing situation through its distinct advantages over traditional mortgages.
The VA loan program allows the Veteran to purchase a home with no money down. You can get a 100% LTV loan with VA.
Like all home loans, VA Mortgages have considerable details and information to review. We are happy to discuss your personal qualification to determine if getting a VA loan is the best option for you.
FHA Loans
We do quite a bit of FHA financing at Home Team Lending. We generally consider going with an FHA loan if the credit score is in the 620-650 and/or if there is a previous Bankruptcy, Short Sale or Foreclosure. Often, FHA financing may be easier to obtain if your qualifying is in this range.
FHA financing is a government loan backed by the Federal Housing Administration (FHA). FHA only requires 3.5% down. The down payment can come from a gift or other down payment assistance programs.
FHA loans require Mortgage Insurance Premium (MIP). For FHA loans the MIP is the same amount no matter what your credit score is. FHA charges upfront and monthly MIP. Unlike conventional loans, the MIP can never be dropped on the loan. It is required for the life of the loan.
As with most mortgage programs, there is a good time to use the FHA financing.
First Time Home Buyers
Home Team Lending loves to help people purchase their first home and offers a variety of programs to help buyers with limited credit history or income realize their dream of homeownership. Your Home Team Lending mortgage professional will help you determine which loan is best for you, how the process works and how you can make this happen. Loans may include the following features:
Low down payment options
Alternative credit histories accepted
Down payment funding in the form of gifts or grants
USDA Loans
A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down.
USDA loans are property specific. Make sure you check with us to see if a particular home (area) would be eligible.
Borrower(s) must meet the income limits based on the size of the family. Check with us to see what the current income limits are for this program. USDA counts all income in the home. Anyone living in the home must furnish income for the preceding year to meet the requirements.
This program is designed for single family homes that will be owner occupied for purchase or refinancing.
Reverse Mortgage
A reverse mortgage is loan available to homeowners who are 62 years or older that enables them to convert part of the equity in their home into cash.
The product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. However, there is no restriction for how reverse mortgage proceeds can be used.
The loan is called a reverse mortgage because the traditional mortgage payback stream is reversed. Instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.
You are not required to pay back the loan until the home is sold or otherwise vacated. As long as you live in the home, the loan will remain in force. You must remain current on your property taxes, homeowners insurance and condominium fees (if you live in a condo).
Investment Properties, or Non-Owner Occupied Loans
Investment properties provide a vehicle that allow you to enjoy the potential for market appreciation while building equity each month. In addition, the monthly cash flow from a real estate investment can provide extra income to your wallet, help you pay down debt faster, or allow you to quit your job and begin living life on your own terms.
Non-Owner Occupied, NOO, loans are available for purchase or refinance. Because there is more risk with an NOO loan, the terms will be stricter. They require more down payment and the rates are higher than Owner Occupied, OO, Loans.
To see if you qualify to purchase a NOO property or if you want to convert your OO property to an investment, give us a call. We can walk through all the details for you.
