Which loan is right for me?

Years you plan to stay in the homeRecommended program
1-3 years3/1 ARM or 5/1 ARM
3-5 years5/1 ARM or 30 year fixed
5-7 years7/1 ARM or 30 year fixed
7-10 years30 year fixed or 15 year fixed
10+ years30 year fixed or 15 year fixed
Loan ProgramAdvantagesDisadvantages
30 year fixedMonthly payments are fixed over the life of the loanRate does not drop automatically if interest rates improve
25 year fixedInterest rate does not change
20 year fixedProtected if rates go up
15 year fixedCan refinance if rates go down
10 year fixedStability, stability, stability
Loan ProgramAdvantagesDisadvantages
10/1 ARMLower initial monthly paymentMore risk, consider well
7/1 ARMRates and payments may go down if rates improvePayments may change over time
5/1 ARMMay qualify for higher loan amountsPotential for higher payments if rates increase
3/1 ARM30 year term, no balloon payment
1 year ARMCan be savvy move if you know that you will pay off the loan in a few years
6 month ARM
1 month ARM
Loan ProgramAdvantagesDisadvantages
VA0 down paymentFor eligible veterans only
No monthly mortgage insurance premiumVA Appraisers require repairs be done before closing
Loan ProgramAdvantagesDisadvantages
First Time Buyer Programs – PHFALower down paymentIncome and property value limitations
Easier to qualifySome government subsidized programs may generate a recapture tax if you sell the house too soon
Lower rates may be availableEducation courses may be required
Closing cost assistance availableLonger approval times
Loan ProgramAdvantagesDisadvantages
USDA Guaranteed Home Loans0 down paymentIncome limits
No monthly mortgage insurance premiumGeographic limits
Flexible, common sense approvalsPrimary residence, single family home only
Seller can pay closing costs or finance up to the appraised valueFHA appraisal rules
Loan ProgramAdvantagesDisadvantages
FHALow 3.5% down payment, can be a giftMortgage insurance can be expensive
No income maximums or special requirements to qualify like VA or USDALoan size maximums
Seller can pay up to 6% of sales price towards buyer’s closing costsAppraiser requires health and safety repairs before closing
Loan ProgramAdvantagesDisadvantages
No Lender closing cost programsNo out-of-pocket lender fees at closing, you pay interest, taxes and insuranceHigher rates
Less money required to closeHigher payments
Refinance without increasing your loan amountLarger loan sizes only
Loan ProgramAdvantagesDisadvantages
FHA 203k Property Rehab LoansFinance improvements to a property in the loan, refinance or purchaseLonger approval times
Must use contractors and HUD consultant
Loan ProgramAdvantagesDisadvantages
Reverse MortgageExcellent means for a senior to access equity in a homeHigh closing costs and mortgage insurance fees
No regular credit or income underwritingLump sum disbursement to get a fixed interest rate, ability to draw requires variable interest rate
HUD counseling required
Loan ProgramAdvantagesDisadvantages
Investor Rehab loansFast closingsExpensive
Nearly any property conditionShort term
Common sense underwriting

In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:

  • Mortgage Insurance solutions – are specialty!
  • Debt consolidation programs.
  • Home Improvement loans.
  • You may qualify even if you’ve been turned down before!