Conventional Loans
Combination Loans (Avoids Mortgage Insurance)
Mortgage Insurance (MI) applies to the first loan on your home should the loan amount exceed 80% of the purchase price or value in a refinance. Since MI is not tax deductible and has no advantage to you as a borrower, we eliminate this need by providing two loans instead of one. The first loan is for 80% of the lesser of purchase price or appraised value and the second loan is for the remaining balance. The second loan tends to have a higher interest rate than the first loan. The advantage to you as the borrower is that the interest from both loans is usually tax deductible. Also, if you desire to pay down your loan, the second loan is for a smaller amount than the first and is therefore easier to pay off. The total payment for the combination loan is usually lower than if you had MI. These loans are typically known as 80/20 (zero down payment), 80-15-5 (5% down payment) or 80-10-10 (10% down payment). Your down payment can be for any percentage or dollar amount.
In January 2007, President Bush signed into law a measure which allows mortgage insurance to be tax deductible if your adjusted gross income is under $110,000.00. This does not apply to refinances. Please consult with your loan officer and tax adviser regarding this option.
Fannie Mae (FNMA) and Freddie Mac (FHLMC) Conforming Loans
These two government-sponsored enterprises were chartered by Congress to keep housing markets liquid by securitizing, buying, selling and guaranteeing mortgages through government bond issues to the mortgage industry. They also set the lending rules and the loan amounts they will lend. This maximum loan amount, currently $417,000 changes every year and is different for each area of the country.
The private equity markets and major financial institutions provide the monetary resources and rules for loans to the mortgage industry which exceed the maximum FNMA and FHLMC limits. These loans typically are up to a maximum of $1,000,000.
Super Jumbo (Non-Conforming Loans)
The private equity markets and major financial institutions provide the monetary resources and rules for loans to the mortgage industry from $1,000,050 and up.
Whether in conjunction with a combination loan to avoid the need for mortgage insurance, or as a separate loan for a refinance, debt pay off, home improvement or any other financial need, we offer very competitive home equity loans which are for a fixed rate and term or home equity lines of credit which are adjustable and tied to the Prime index.
Construction / Renovation Loans
Borrowers wishing to build a custom home may obtain financing through a package program called Construction/Permanent financing. This program takes a borrower though lot acquisition, construction, and conversion to a permanent loan upon completion of the project. A construction/permanent loan is a one-time close loan program to finance the construction of your dream home, providing both the construction funds and the permanent loan. This means you will save thousands of dollars by not having additional closing costs from multiple loan settlements.
The normal construction/permanent loan allows for 12-months for completion. Construction extensions are available if necessary. The size of the dwelling and the time of year are two factors that may effect your construction loan term. Long-term rate protection for the permanent loan is available for customers worried about rising interest rates.
During the construction period, interest is only charged on the amount of the loan actually outstanding. When the home is completed, the permanent loan period begins.
Borrowers who are buying a home or have an existing home which needs to be renovated or remodeled can utilize our renovation loan program. This loan finances the purchase or refinance of the home as well at the improvements to be made. Just like the construction to permanent loan program, the construction and the permanent phases are combined into one loan, saving time and money. The renovation or remodeling can take up to 12-months, with draws as frequently as monthly, depending upon the complexity of the project. Once the work is completed, the loan automatically rolls to the permanent loan.
