Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.
As one of the most commonly heard of programs, FHA is one for them all. Because FHA Loans are insured by the Federal Housing Administration, homebuyers have an easier time qualifying for a mortgage. Those who typically benefit most by an FHA loan are first-time homebuyers and those who have less than perfect credit. A borrower can put as little as a 3.5% down payment towards the purchase of a home and there are no income limits. Whether it be a purchase or refinance, this program suits them both. FHA loans allow for higher debt ratios and typically have less stringent qualifying guidelines.
U.S. Department of Agriculture (USDA) mortgage loans are designed for buyers looking to get into homes with no down payment. It is aimed toward the rural areas of Colorado, such as, Fruita, Loma, Mack, Palisade, etc. You don’t have to be a first time buyer to utilize this loan, however it is a great and sought after program for people looking to buy their first home. Also, it’s possible to add the closing costs into the loan to truly buy a home with no to little money down.
USDA mortgage loans are offered to individuals whose meet the program’s household income limits. Please ask your loan officer for more information.
For our veterans out there, along with our active-duty personnel, reservists/National Guard members and some surviving spouses, use your VA benefits to purchase or refinance your home with no mortgage insurance! Purchases can be done with no down payment and there are no area restrictions on this program. It is a fantastic loan program with competitive rates. Also, VA loans can be used for rate and term refinancing or cash-out refinancing up to 100% loan to value of the primary residence.
Many homeowners have found that a reverse mortgage is a great way for them to take advantage of the equity they have built up in their homes. A reverse mortgage is different than a traditional mortgage. With a traditional mortgage you make monthly mortgage payments, but with a reverse mortgage the lenders pays you money through monthly installments or a one-time lump sum payment. The money that you receive is dependent on your age and the value of your home. One of the great advantages of a reverse mortgage is that you are not required to pay the loan back until the home is no longer your primary residence. Another great feature of a reverse mortgage is you can never owe more than the value of your home. No matter what. If you’re aged 62 or older and own your home you might be eligible for a reverse mortgage. Contact us to find out more about reverse mortgages and ways to make it work for you, or apply now and start the process of tapping the equity in your home.
There are many refinancing options available, and the benefits of each are unique. Whether you’re looking to reduce your payments or consolidate your debt, we can help. Call or come in today to get your process moving.
Lowering your monthly payment
There are a few ways to lower your monthly payment, including obtaining a lower interest rate or extending the term of your loan. This is usually the primary reason for obtaining a refinance loan.
Dropping Private Mortgage Insurance