With all the mortgage programs available today, finding the right residential mortgage loan that fits your needs can seem like an overwhelming experience. For first-time homebuyers, this process can be even more stressful. The professionals at Columbus Capital Lending, however, are committed to finding the program that works for your unique situation and needs.
Conventional Loans Type Best Use Advantages
ARMs • Short-term homeowners • Clients with future income growth potentia • Low initial interest rate
30-Year Fixed Rate • Long-term homeowners looking for stability • Long-term interest rate and monthly payment stability
15-Year Fixed Rate •Clients looking for stability and speedy payoff • Interest rate & payment stability
• Faster equity/payoff
• Less overall interest
Jumbo • Clients seeking higher value • No limit
• Covers more value
Government Insured Type Best Use Advantages
FHA • Clientel with limited credit or income • Low down payment • Easier credit and income requirements
VA • Eligible past/present service members and spouses • Low interest rate • Low down payment • Costs covered
USDA • Limited income clientel in USDA designated rural areas • 100% Financing
• Assits limited income clientel
Conventional home loans are those not insured by a federal agency, such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA). Conventional options come in many varieties – fixed-rate, ARMs, conforming, non-conforming, jumbo, etc.
An adjustable-rate mortgage gives homeowners the advantage of a low introductory rate for the first few years of the home loan. These loans can help short-term borrowers beat the higher interest rates found in counterparts. ARMs can be a good option for short-term homeowners or those who can reasonably expect to have a higher income over time.
The 30-Year Fixed Rate Home Loan
The 30-year fixed rate mortgage is the gold standard of the industry. It gives homeowners long-term stability with one predictable monthly payment amount over the three decades of the loan. The fixed interest rate keeps the homeowner free from the fear of rising interest rates. These loans particularly appeal to homeowners who expect to settle down in one house for a long period of time.
The 15-Year Fixed Rate Home Loan
The 15-year fixed rate home loan provides the same stability as the 30-year fixed rate option. While the 15-year option has a higher monthly payment, it builds home equity faster, and you pay less interest over the entire term.
FHA Home Loans
The Federal Housing Administration (FHA) runs several lending programs that can help homebuyers with limited credit or income, including first-timers. Government-insured FHA home loans – which come as fixed-rate or ARMs – offer affordable interest rates, a low minimum credit score and a down payment as low as 3.5 percent.
VA Home Loans
The Department of Veterans Affairs (VA) partially guarantees home loans for eligible past and present service members and spouses. The “guaranty” can bring with it no down payment, reduced interest rates, coverage of costs and no maximum amount other than what your credit and income can support.
Each county in the United States has a “conforming loan limit” set by the federal government. Conforming loans remain at or underneath this dollar limit. However, lenders can make so called “jumbo loans” that exceed the cap. By being able to borrow this high-dollar figure, borrowers can reduce the down payment for an expensive home.
USDA Home Loans
The U.S. Department of Agriculture (USDA) helps low and moderate income homebuyers in USDA designated rural areas – including some small towns, suburbs and exurbs. By providing up to 90% coverage, the USDA empowers eligible applicants to borrow the entire value of the loan, eliminating the need for a down payment. These 30-year fixed rate home loans require no mortgage insurance and have no limit beyond what you can pay.
Reverse Mortgages offer a unique opportunity for seniors to take advantage of the equity they have built up in their homes and enjoy their golden years without the financial worries associated with monthly mortgage payments.