LOAN PRODUCTS

Conventional Loans

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A conventional loan is a mortgage that is not insured, or guaranteed, by the federal government. They’re popular with borrowers who have good credit, a stable job and income, who can afford a down payment, and people who are financially stable overall. Government-backed loans like the VA, FHA, USDA and other loan programs are designed for people who can’t afford a significant down payment, have less than perfect credit, are first-time homebuyers, and others who may need some type of financing assistance. With a conventional loan, PrimeLending sets the terms of the loan and works with the borrower directly. In this situation, PrimeLending has determined the borrower can make all their payments on time and will not default on the loan. Government-backed loans, on the other hand, have terms set by the federal government who then insures or guarantees the loan, protecting the lender in the event a borrower defaults on the mortgage. CONVENTIONAL LOAN BENEFITS Conventional loans are a good choice for new home purchases and refinancing. Unlike government-backed loans, they are sometimes harder to get because of the additional credit and financial requirements, but you will eventually discover that they offer much more flexible terms and fewer restrictions, which makes them more convenient. ADVANTAGES OF CONVENTIONAL LOANS FROM PRIMELENDING

• They are much simpler to apply and qualify for, with less paperwork, and you’ll have fewer rules and regulations to meet.
• You have a lot more options to choose from, the terms are more flexible and easier to customize and match to your financial situation and goals.
• They can be used for almost all types of properties, from single- and multi-family homes to condominiums and even manufactured homes.
• If you have at least 20% to put down on a purchase, or at least 20% equity when refinancing, you are not required to pay mortgage insurance.
• Conventional loan rates are often quite low since we know the borrower is financially stable and has good credit.

TYPES OF CONVENTIONAL LOANS Fixed-rate mortgages have an interest rate that does not change for the life of loan. 15- and 30-year terms are the most common. They offer stable, predictable payments that also don’t change. Monthly payments are usually very low because they’re spread out over time. They’re great long-term loans if you plan to stay in your house for at least seven or more years. Adjustable rate mortgages have an interest rate that does change. There’s an initial up-front period when the rate is fixed. During this time, the interest rate and monthly payments are even lower than a fixed-rate mortgage. However, after the initial period, your rate can change or adjust, usually higher, along with your monthly payments. Adjustable rates are ideal for people who don’t plan on staying in their home past the time when the interest rate will change, usually after 3-, 5-, 7- or 10-year terms.

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FHA Loans

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An FHA loan is a home loan that’s backed by the Federal Housing Administration. Banks and credit unions issue the loan and the FHA provides the backing, which means that if you can’t pay the mortgage, the FHA pays the lender instead. Designed for low- to moderate-income borrowers, FHA loans require smaller down payments than conventional loans and can work with low credit scores. WHAT ARE THE BENEFITS OF AN FHA LOAN? FHA home loan programs typically help first-time homebuyers, seniors or others with limits on what they can afford. FHA home loans offer the following benefits:

• A low 3.5% down payment
• Flexible income and credit requirements
• Low closing costs

FHA FIXED-RATE HOME LOANS

• 30-year fixed rate FHA
• 25-year fixed rate FHA
• 20-year fixed rate FHA
• 15-year fixed rate FHA

Either option offers the same interest rate stability, but the 15-year fixed rate FHA gives you greater power to move. With a higher monthly payment, you build up more equity in the house sooner. This means you can use proceeds from a house sale to make a bigger down payment on a future purchase, making it a smart long-term solution. A 30-year fixed rate FHA is the better option if you don’t plan on moving any time soon, or at all. Senior citizens often go this route when they look to downsize. FHA ADJUSTABLE-RATE MORTGAGE An FHA adjustable-rate mortgage (ARM) lets homeowners pay a low introductory interest rate for the first few years, then move to a new home before it adjusts, possibly upwards. If you know you want to buy a starter home that you will leave in a few short years, then an ARM could make sense for you. PrimeLending offers the 5-year hybrid ARM (fixed for the first 5 years, change annually after that, annual cap of 2 percentage point and a lifetime cap of 6 percentage points.

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Veteran Loans

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A VA loan is a great benefit to military personnel during and after their service. PrimeLending understands the importance of a “home base” for military and their families and is proud to be able to help active and retired military use this product to meet their unique needs. Like conventional loans or government-issued loans, VA loans come in different varieties. BENEFITS OF A VA LOAN VA loans are partly guaranteed (typically a quarter of the loan value) by the U.S. Department of Veterans Affairs and offer the following benefits:

• No down payment
• Higher loan value
• No private mortgage insurance
• Limit on closing costs
• Option for seller to pay closing costs
• No penalty fee for early payoffs
• Possible VA assistance if you have difficulty with payments

WHO IS ELIGIBLE TO RECEIVE A VA LOAN? VA loan eligibility depends on certain criteria. To obtain a VA home loan, an applicant must first obtain a Certificate of Eligibility (COE). Qualified applicants are those that have received a discharge other than dishonorable from an eligible branch of the service, including the U.S. Army, Navy, Air Force, Marines, Coast Guard, National Guard and Reserve and U.S. Military academies. They must also meet certain eligibility requirements. VA FIXED-RATE HOME LOANS A 30-year fixed-rate option gives you a stable, predictable monthly payment. These loans are great for people settling down in one house over a long period of time. They give deployed soldiers a warm place to come home. A 15-year fixed-rate option could help current service members who would like to build equity more quickly. You pay more monthly, but this pace builds more equity in your home. VA ADJUSTABLE-RATE MORTGAGES The flexibility of a five-year adjustable-rate mortgage can be appealing to current military service members expecting to move in the next few years. ARM homeowners pay a low introductory interest rate for the first few years, then move or refinance before it adjusts upward. VA JUMBO HOME LOAN The VA will guarantee a maximum of 25% on your home loan.

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Jumbo Loans

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Jumbo loans are quite common. What makes them different from conforming loans is rather than meeting guidelines established by Fannie Mae, the Federal National Mortgage Association, and Freddie Mac, the Federal Home Loan Mortgage Corporation, the lender sets the guidelines. These loans with a different set of guidelines, or requirements for getting one, are important because average home prices vary widely across the United States, within states, and even cities and communities. The limits are based on average home prices. By comparison, conforming loan regulations are government-sponsored enterprises that buy or secure mortgages from lenders like investments. This helps make more money available to lenders they can then use to provide new loans to more borrowers. The regulations they establish are designed to create fairness to borrowers by establishing uniform mortgage documents and national standards for mortgages. In other words, you might consider jumbo loans to be a bit riskier than a conforming loan, but PrimeLending is here to guide you through those waters. HOW TO QUALIFY FOR A JUMBO LOAN As with any standard mortgage loan, jumbo loans come with a series of steps to take. Some of the major qualifications include:

• A debt-to-income ratio lower than 43%
• A credit score above 700
• Cash reserves—it’s not uncommon for some borrowers to ask for proof that you have enough money in the bank
• Financial documentation that extends beyond a conforming loan, including full tax returns, W-2s and 1099s.

WHY SHOULD I GET A JUMBO LOAN FROM PRIMELENDING?

• We offer loans up to 80% of the home’s value that require 20% down1
• Fixed-rate and adjustable-rate jumbo loans are available
• Some jumbo loan programs allow down payments in the form of a gift

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New Construction

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Getting a construction loan to build your very own custom home from the ground up is a little different than buying an existing home. We have the perfect construction loan solution to help you make your dream home a reality. Here are a couple of considerations to keep in mind as you get started: Use a qualified builder. Anyone less than a licensed general contractor with a proven track record will make getting a loan harder. If you’re acting as your own general contractor, you may have additional requirements to prove you’re qualified for the job. Get an appraisal. How do you appraise something that doesn’t exist? Most likely, you will need to have an appraiser consider any specs or blueprints of the house, in addition to the value of the land. They compare that information to similar homes in similar locations and determine the value from there. TWO CLOSINGS. ONE LOAN. IT’S THAT SIMPLE. Luckily for you, PrimeLending can help with this complicated process. We offer a streamlined two-step construction loan process. First, you get a temporary loan to start the project. Second, once construction is complete, we’ll refinance your initial loan into a traditional mortgage at the most favorable terms possible. Here are just a few benefits that we provide to make the process smoother: We’ll lock the interest rate for your second refinance loan up to 12 months. This protects you against rate increases, and the lock fee will be refunded when the loan closes. Your first loan will come with a fixed rate and you only pay interest on money used for construction, not the entire loan amount. When you refinance your initial loan to your regular home mortgage, you’ll receive closing cost credits that may result in low or no cost refinancing.

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Down Payment Assistance

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BUYING A HOME MAY BE MORE AFFORDABLE THAN YOU THINK Coming up with the cash for a down payment and/or closing costs on a house may seem challenging or even impossible to some homebuyers, but it doesn’t have to be. There are programs that can help make homeownership more affordable, many with low- and no-down payment options, and some connected to popular government-backed loans. DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS: Conventional 97 — available through Fannie Mae and Freddie Mac, this program requires a 3% down payment and is available for the purchase of single unit primary residence properties. It’s best suited for buyers with excellent credit or average credit. HomeReady® — this Fannie Mae-backed program allows for a 3% down payment and offers discounts on mortgage rates and private mortgage insurance; it’s targeted at multi-generation households where multiple people contribute to the family income and can be anyone with an income below the average for the area. Home Possible® — a Freddie Mac mortgage option that is a great option for first-time homebuyers; it requires a down payment of only 3%. FHA Loan Program — allows for down payments of just 3.5% and can be used for primary residences with 1-4 units; a big advantage is that FHA mortgage rates tend to beat conventional rates. VA Loan Guaranty — this program is available to veteran or active duty military borrowers; there is no down payment requirement and no mortgage insurance charge, regardless how little you choose to put down. USDA Home Loan — is available to buyers in less dense parts of the country, including rural areas and many U.S. suburbs as well; it allows for 100% financing and offers reduced mortgage insurance costs as compared to other low- and no-down payment loans. 203K Renovation Loan — a great solution if your first home is a fixer-upper; if your purchase requires repairs, there’s a low minimum down payment requirement of only 3.5% and the loan covers the value of the property plus the repair costs. State Down Payment Assistance Programs — in addition, there are thousands of state-specific DPA programs for which you may qualify. The U.S. Department of Housing and Urban Development (HUD) maintains an updated list(link opens in a new tab) of active programs.

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Conventional Refinance

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Conventional loans are popular refinancing options among homeowners who have good credit and stable finances. Since conventional loans are not backed by the government, they offer more flexible terms and fewer restrictions. And, if you have at least 20% equity, you can avoid paying private mortgage insurance (PMI). Here’s why you should consider refinancing with a conventional loan:

• They are much simpler to apply and qualify for, with less paperwork and fewer rules and regulations.
• You have a lot more options to choose from and the terms are more flexible and easier to customize.
• They can be used for almost all types of properties, from single- and multi-family homes to condominiums and even manufactured homes.

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USDA Refinance

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A USDA loan is guaranteed by the U.S. Department of Agriculture and offers numerous advantages to homeowners. While your property must be in a “rural” area outlined by the USDA, you may be surprised at what they deem rural, as many suburban areas may qualify. Benefits of refinancing with a USDA loan include: Low interest rate
Since the loan is guaranteed, the rate is typically lower because it’s not tied to your credit score or a down payment amount. Low private monthly insurance
As of 2019, the upfront mortgage insurance rate on a USDA loan is just 1%, with an annual fee of only 0.35%, which are the lowest numbers of virtually any mortgage program. 100% financing
The upfront fee can be rolled into the loan, eliminating an out-of-pocket expense at closing. Flexible credit guidelines
If you have lower credit scores or your credit history isn’t perfect, you may still meet the program’s qualifying requirements.

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Cash-Out Refinance

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If you've been in your home for some time or you've made some upgrades — or both — chances are your home may be worth more than what you owe on your mortgage. The difference between your home's value and what you owe on it is your available equity, and when you choose a cash-out refinance, you can gain access to that extra equity. WHY CHOOSE A CASH-OUT REFINANCE? There are lots of reasons to tap into your home's equity, including:

• To pay for college or other education
• To pay for other major expenses like a wedding, dream vacation or family reunion
• To make upgrades to the home, like a pool, open concept or new kitchen
• To make improvements like walk-in-showers that will enable older homeowners to "age in place"
• To fund a nest egg or other investments
• To consolidate debt

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FHA Refinance

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An FHA (Federal Housing Administration) refinance loan is a government-backed program that typically offers more flexibility when it comes to requirements, interest rate and closing costs. Loans are available for fixed-rate, adjustable-rate and cash-out refinance options. FHA Adjustable-Rate Mortgage (ARM) Refinance
Homeowners start with an introductory rate for the first few years before it adjusts every year after. With an ARM, your monthly payment is typically lower since the rate starts lower. ARMs are great options for people who think they may move and sell the home within five years. FHA Fixed-Rate Mortgage Refinance
Choosing between a 15-year or a 30-year fixed-rate will make the difference in your monthly payment and how much goes toward the principle balance. A 15-year loan will have higher payments but will build equity faster (while also ensuring you pay off the loan quicker). A 30-year means you will have a lower monthly payment, more goes to interest and you don’t build equity quite as fast. FHA Cash-Out Refinance
If you've been in your home for some time or you've made some upgrades – or both – chances are your home may be worth more than what you owe on your mortgage. The difference between your home's value and what you owe on it is your available equity, and when you choose a cash-out refinance, you can gain access to that extra equity as cash.

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VA Refinance

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VA refinance loans (backed by the U.S. Department of Veteran Affairs) are designed for current and veteran military personnel looking to refinance their mortgage. Whether your current home loan is VA or another loan type, eligible service members can use a VA loan to take advantage of exclusive benefits and savings. What kind of benefits?

• No lender fees* at PrimeLending
• No private mortgage insurance (PMI)
• Easier credit requirements
• Limit on closing costs
• Higher loan value
• Possible assistance if needed

If you meet one or more of the following requirements, you may be eligible for a VA loan refinance from PrimeLending:

• Active service duty for 90 consecutive days of combat
• Active service duty for 181 days of peace
• Served 6 or more years in the National Guard or Selected Reserve
• Are a spouse of a veteran who died while in service or from a service-connected disability
• Have a Certificate of Eligibility

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FHA 203k

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If upgrades are needed to a home, an FHA renovation loan can help finance that work while helping to keep costs as low as possible. These government-backed loans can be used for purchasing or refinancing, and offer lower down payment requirements and lower refinancing interest rates. There are two types of FHA 203k loans: FHA 203K FULL/STANDARD
This option is best for modernizing older properties that need structural repairs or a major renovation. Some examples of updates with a Full/Standard include bedrooms needing to be remodeled, replacement or repairs to plumbing, roofing and floors, or improving function, appearance, landscaping, energy conservation, health, safety and disabled accessibility. FHA 203K LIMITED The Limited loan is designed to handle smaller projects with a quicker turnaround. The cost of renovations can be up to $35,000 and can cover minor changes such as: Fixing or replacing roofs, gutters, flooring, decks, patios, windows and other similar options

• Update existing HVAC, plumbing or electrical systems
• Remodel or finish a basement or kitchen that doesn’t require structural work
• Painting and weatherizing
• Appliances
• Improving disabled accessibility

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FHA Loans

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What’s so easy about an EZ “C”onventional Repair Escrow? That’s the first question when seeing this renovation loan type (and name). The answer is: it makes it simple to finance small upgrades on a newly purchased home over a short period of time. Also, your bank account takes less of a hit, since EZ “C” helps eliminate duplicate fees or higher fees due to multiple loans. Cosmetic, non-structural upgrades can be made with an EZ “C”, covering both appraiser-required or borrower requested repairs. The renovations can cover things like a kitchen, bathroom or bedroom improvement, and must add value to the home. And like all escrows, a dedicated account is created to cover the cost of the updates. Plus, all costs are rolled into your mortgage, so you still have just one loan and one monthly payment. This loan is designed to handle smaller repairs that take less than 60 days to complete. The cap is $35,000.

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Pool Escrow

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Make a splash with your outdoor oasis. Want to make summers a bit cooler? For homeowners or home buyers wanting to add a pool to their backyard, a pool escrow loan is one of the most popular ways to achieve that goal. Available on conventional and jumbo loans, a pool escrow creates a dedicated account to cover the costs of the pool construction. And the good news is, those costs are rolled into your mortgage — either through purchasing or refinancing — so you will only have one monthly payment with a single loan.

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Energy Efficient

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Have you ever wanted to add solar panels to your home? What about replacing your current appliances with energy-efficient solutions? You can accomplish it all with our renovation loan options at PrimeLending. These eco-friendly loan options are specifically designed to help you and the environment. Here are many updates you can make to a home through our energy-efficient loans:

• Adding solar electric systems
• Caulking and weather stripping
• Installing “smart” thermostats
• New or additional insulation
• Water heater insulation
• Window and door replacements
• Energy-efficient appliances like AC/furnace, refrigerator, etc.

Like all of our renovation loans at PrimeLending, anytime there are repairs or upgrades, we’ll roll the costs of the work into a single loan, so you’ll still only have one loan and one monthly payment.

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Conventional Loans

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A conventional loan is a mortgage that is not insured, or guaranteed, by the federal government. They’re popular with borrowers who have good credit, a stable job and income, who can afford a down payment, and people who are financially stable overall. Government-backed loans like the VA, FHA, USDA and other loan programs are designed for people who can’t afford a significant down payment, have less than perfect credit, are first-time homebuyers, and others who may need some type of financing assistance. With a conventional loan, PrimeLending sets the terms of the loan and works with the borrower directly. In this situation, PrimeLending has determined the borrower can make all their payments on time and will not default on the loan. Government-backed loans, on the other hand, have terms set by the federal government who then insures or guarantees the loan, protecting the lender in the event a borrower defaults on the mortgage. CONVENTIONAL LOAN BENEFITS Conventional loans are a good choice for new home purchases and refinancing. Unlike government-backed loans, they are sometimes harder to get because of the additional credit and financial requirements, but you will eventually discover that they offer much more flexible terms and fewer restrictions, which makes them more convenient. ADVANTAGES OF CONVENTIONAL LOANS FROM PRIMELENDING

• They are much simpler to apply and qualify for, with less paperwork, and you’ll have fewer rules and regulations to meet.
• You have a lot more options to choose from, the terms are more flexible and easier to customize and match to your financial situation and goals.
• They can be used for almost all types of properties, from single- and multi-family homes to condominiums and even manufactured homes.
• If you have at least 20% to put down on a purchase, or at least 20% equity when refinancing, you are not required to pay mortgage insurance.
• Conventional loan rates are often quite low since we know the borrower is financially stable and has good credit.

TYPES OF CONVENTIONAL LOANS Fixed-rate mortgages have an interest rate that does not change for the life of loan. 15- and 30-year terms are the most common. They offer stable, predictable payments that also don’t change. Monthly payments are usually very low because they’re spread out over time. They’re great long-term loans if you plan to stay in your house for at least seven or more years. Adjustable rate mortgages have an interest rate that does change. There’s an initial up-front period when the rate is fixed. During this time, the interest rate and monthly payments are even lower than a fixed-rate mortgage. However, after the initial period, your rate can change or adjust, usually higher, along with your monthly payments. Adjustable rates are ideal for people who don’t plan on staying in their home past the time when the interest rate will change, usually after 3-, 5-, 7- or 10-year terms.

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FHA Loans

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An FHA loan is a home loan that’s backed by the Federal Housing Administration. Banks and credit unions issue the loan and the FHA provides the backing, which means that if you can’t pay the mortgage, the FHA pays the lender instead. Designed for low- to moderate-income borrowers, FHA loans require smaller down payments than conventional loans and can work with low credit scores. WHAT ARE THE BENEFITS OF AN FHA LOAN? FHA home loan programs typically help first-time homebuyers, seniors or others with limits on what they can afford. FHA home loans offer the following benefits:

• A low 3.5% down payment
• Flexible income and credit requirements
• Low closing costs

FHA FIXED-RATE HOME LOANS

• 30-year fixed rate FHA
• 25-year fixed rate FHA
• 20-year fixed rate FHA
• 15-year fixed rate FHA

Either option offers the same interest rate stability, but the 15-year fixed rate FHA gives you greater power to move. With a higher monthly payment, you build up more equity in the house sooner. This means you can use proceeds from a house sale to make a bigger down payment on a future purchase, making it a smart long-term solution. A 30-year fixed rate FHA is the better option if you don’t plan on moving any time soon, or at all. Senior citizens often go this route when they look to downsize. FHA ADJUSTABLE-RATE MORTGAGE An FHA adjustable-rate mortgage (ARM) lets homeowners pay a low introductory interest rate for the first few years, then move to a new home before it adjusts, possibly upwards. If you know you want to buy a starter home that you will leave in a few short years, then an ARM could make sense for you. PrimeLending offers the 5-year hybrid ARM (fixed for the first 5 years, change annually after that, annual cap of 2 percentage point and a lifetime cap of 6 percentage points.

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Veteran Loans

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A VA loan is a great benefit to military personnel during and after their service. PrimeLending understands the importance of a “home base” for military and their families and is proud to be able to help active and retired military use this product to meet their unique needs. Like conventional loans or government-issued loans, VA loans come in different varieties. BENEFITS OF A VA LOAN VA loans are partly guaranteed (typically a quarter of the loan value) by the U.S. Department of Veterans Affairs and offer the following benefits:

• No down payment
• Higher loan value
• No private mortgage insurance
• Limit on closing costs
• Option for seller to pay closing costs
• No penalty fee for early payoffs
• Possible VA assistance if you have difficulty with payments

WHO IS ELIGIBLE TO RECEIVE A VA LOAN? VA loan eligibility depends on certain criteria. To obtain a VA home loan, an applicant must first obtain a Certificate of Eligibility (COE). Qualified applicants are those that have received a discharge other than dishonorable from an eligible branch of the service, including the U.S. Army, Navy, Air Force, Marines, Coast Guard, National Guard and Reserve and U.S. Military academies. They must also meet certain eligibility requirements. VA FIXED-RATE HOME LOANS A 30-year fixed-rate option gives you a stable, predictable monthly payment. These loans are great for people settling down in one house over a long period of time. They give deployed soldiers a warm place to come home. A 15-year fixed-rate option could help current service members who would like to build equity more quickly. You pay more monthly, but this pace builds more equity in your home. VA ADJUSTABLE-RATE MORTGAGES The flexibility of a five-year adjustable-rate mortgage can be appealing to current military service members expecting to move in the next few years. ARM homeowners pay a low introductory interest rate for the first few years, then move or refinance before it adjusts upward. VA JUMBO HOME LOAN The VA will guarantee a maximum of 25% on your home loan.

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Jumbo Loans

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Jumbo loans are quite common. What makes them different from conforming loans is rather than meeting guidelines established by Fannie Mae, the Federal National Mortgage Association, and Freddie Mac, the Federal Home Loan Mortgage Corporation, the lender sets the guidelines. These loans with a different set of guidelines, or requirements for getting one, are important because average home prices vary widely across the United States, within states, and even cities and communities. The limits are based on average home prices. By comparison, conforming loan regulations are government-sponsored enterprises that buy or secure mortgages from lenders like investments. This helps make more money available to lenders they can then use to provide new loans to more borrowers. The regulations they establish are designed to create fairness to borrowers by establishing uniform mortgage documents and national standards for mortgages. In other words, you might consider jumbo loans to be a bit riskier than a conforming loan, but PrimeLending is here to guide you through those waters. HOW TO QUALIFY FOR A JUMBO LOAN As with any standard mortgage loan, jumbo loans come with a series of steps to take. Some of the major qualifications include:

• A debt-to-income ratio lower than 43%
• A credit score above 700
• Cash reserves—it’s not uncommon for some borrowers to ask for proof that you have enough money in the bank
• Financial documentation that extends beyond a conforming loan, including full tax returns, W-2s and 1099s.

WHY SHOULD I GET A JUMBO LOAN FROM PRIMELENDING?

• We offer loans up to 80% of the home’s value that require 20% down1
• Fixed-rate and adjustable-rate jumbo loans are available
• Some jumbo loan programs allow down payments in the form of a gift

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New Construction

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Getting a construction loan to build your very own custom home from the ground up is a little different than buying an existing home. We have the perfect construction loan solution to help you make your dream home a reality. Here are a couple of considerations to keep in mind as you get started: Use a qualified builder. Anyone less than a licensed general contractor with a proven track record will make getting a loan harder. If you’re acting as your own general contractor, you may have additional requirements to prove you’re qualified for the job. Get an appraisal. How do you appraise something that doesn’t exist? Most likely, you will need to have an appraiser consider any specs or blueprints of the house, in addition to the value of the land. They compare that information to similar homes in similar locations and determine the value from there. TWO CLOSINGS. ONE LOAN. IT’S THAT SIMPLE. Luckily for you, PrimeLending can help with this complicated process. We offer a streamlined two-step construction loan process. First, you get a temporary loan to start the project. Second, once construction is complete, we’ll refinance your initial loan into a traditional mortgage at the most favorable terms possible. Here are just a few benefits that we provide to make the process smoother: We’ll lock the interest rate for your second refinance loan up to 12 months. This protects you against rate increases, and the lock fee will be refunded when the loan closes. Your first loan will come with a fixed rate and you only pay interest on money used for construction, not the entire loan amount. When you refinance your initial loan to your regular home mortgage, you’ll receive closing cost credits that may result in low or no cost refinancing.

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Down Payment Assistance

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BUYING A HOME MAY BE MORE AFFORDABLE THAN YOU THINK Coming up with the cash for a down payment and/or closing costs on a house may seem challenging or even impossible to some homebuyers, but it doesn’t have to be. There are programs that can help make homeownership more affordable, many with low- and no-down payment options, and some connected to popular government-backed loans. DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS: Conventional 97 — available through Fannie Mae and Freddie Mac, this program requires a 3% down payment and is available for the purchase of single unit primary residence properties. It’s best suited for buyers with excellent credit or average credit. HomeReady® — this Fannie Mae-backed program allows for a 3% down payment and offers discounts on mortgage rates and private mortgage insurance; it’s targeted at multi-generation households where multiple people contribute to the family income and can be anyone with an income below the average for the area. Home Possible® — a Freddie Mac mortgage option that is a great option for first-time homebuyers; it requires a down payment of only 3%. FHA Loan Program — allows for down payments of just 3.5% and can be used for primary residences with 1-4 units; a big advantage is that FHA mortgage rates tend to beat conventional rates. VA Loan Guaranty — this program is available to veteran or active duty military borrowers; there is no down payment requirement and no mortgage insurance charge, regardless how little you choose to put down. USDA Home Loan — is available to buyers in less dense parts of the country, including rural areas and many U.S. suburbs as well; it allows for 100% financing and offers reduced mortgage insurance costs as compared to other low- and no-down payment loans. 203K Renovation Loan — a great solution if your first home is a fixer-upper; if your purchase requires repairs, there’s a low minimum down payment requirement of only 3.5% and the loan covers the value of the property plus the repair costs. State Down Payment Assistance Programs — in addition, there are thousands of state-specific DPA programs for which you may qualify. The U.S. Department of Housing and Urban Development (HUD) maintains an updated list(link opens in a new tab) of active programs.

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