We offer a variety of loan programs that are tailored to meet the needs of our borrowers.

A conventional loan is a lender agreement that is not guaranteed or insured by the federal government under the Veterans Administration (VA), the Federal Housing Administration (FHA), or the Rural Housing Service (RHS) of the U.S. Department of Agriculture.

A conventional loan can, however, follow the guidelines of government sponsored enterprises (GSE's) like Fannie Mae or Freddie Mac. Both Fannie Mae and Freddie Mac are stockholder-owned corporations and are not part of the federal government.

Conventional loans may be conforming and non-conforming. Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Nonconforming loans do not meet Fannie Mae or Freddie Mac qualifications, but are also considered conventional.

A mortgage issued by federally qualified lenders and insured by the Federal Housing Administration. FHA loans have been designed for low to moderate income borrowers who are unable to make a large down payment. 

They also can be a good solution for those with excellent credit and income. Typically they require a 3.5% down payment which can come from almost anyplace. In most cases the money can be a gift from a family member. The closing costs can also be financed with the mortgage, lowering the initial costs of purchasing a home.

You may also use an FHA loan to refinance. This option allows for easier credit qualifications than conventional loans and also allows for higher loan to values on the overall transaction.

A Veterans Administration Loan will allow a veteran and/or a veterans spouse to purchase a home with no money down. A funding fee will be required at closing but it can be financed.

The benefits of a VA loan are that there is no down payment required, no mortgage insurance required, easier qualification standards, no prepayment penalties and credit and income requirements are more flexible. You may also refinance with a VA loan under certain qualifying criteria.

You may want to refinance your home for the following reasons:

• Reduce your effective interest rate and payment.
• Obtain cash proceeds for home improvements, debt consolidation or investments.
• Obtain a fixed rate and or shorter amortization term.
• Eliminate the need for Private Mortgage Insurance.
• Depending on your goals for the new loan, you may want to consider what the best loan terms will be for you.

Streamline refinances on insured mortgages have been available since the early 1980's. The basic requirements of a streamline refinance are:

• The mortgage to be refinanced must already be insured – FHA.
• The mortgage to be refinanced should be current.
• The refinance is to result in a lowering of the borrower's payments or loan term.

No cash may be taken out on mortgages refinanced using the streamline process. If you have an FHA loan and are considering refinancing to lower your monthly payment consider a streamline. You do NOT have to re-qualify with income or debt/credit (minimum credit scores can apply). The loan is assumable should you sell in the future. If interest rates rise, an assumable mortgage may be the difference between being able to sell or not.

A reverse mortgage is a "Reverse" of a traditional mortgage. This loan actually pays you monthly. It has been compared to an annuity. You may receive a portion of your homes equity in a lump sum or in the form of monthly payments. The disbursements are tax free, the property must be your primary residence and occupied by you, you must be at least 62 years of age and the loan doesn't have to be repaid until the estate is settled- typically 12 months after you have left the home. The amount of money you receive is calculated based on your equity and your life expectancy.

Home Equity Line of Credit
A mortgage secured by the equity in your home. Most equity loans are lines of credit, meaning that you don't borrow a lump sum at closing. Most loans of this type allow you to write checks from your equity line account as funds are needed. At closing the borrower is given a dollar limit on the loan. The borrower can use funds or pay down the balance of the loan for the life of the loan.  The loan account will generally have a fixed term and is an adjustable rate at Prime plus a margin with minimum payments of interest only.

Second Mortgage
A loan secured by a mortgage, which is secondary to the first mortgage. Most second mortgages involve a lump sum borrowed and received at closing. Second mortgages do not allow for additional funds borrowed from the account since the lump sum is distributed only at closing. Second mortgages also have a fixed term and fixed interest rates.

A Jumbo Loan is any amount over $417,000 and is a non-conforming loan that major agencies, such as FHLMC and FNMA, won't buy and trade because of the loan's cost. These major institutions are very powerful in the mortgage market, and most lenders want to be able to sell mortgage obligations to them to earn liquidity to do more business. Since a jumbo loan fails to qualify for Fannie Mae and Freddie Mac guidelines, borrowers must often pay extra to help lenders balance the extra risk they encounter for financing it.

Typically, rates for a jumbo loan can be half a percentage point higher than rates for conventional loans. Jumbo loans were designed to help high-income individuals afford luxury homes. However, thanks to a major inflation in the housing market over the past few years, more and more middle-income Americans have had to turn to jumbo loan financing to get into their dream homes.